The Solar Eclipse Resolution
So, as I went into more depth about on Sunday night, there seems to be market impact via solar eclipses…namely a $VIX ramp the week before the eclipse and then some volatility chop. The chop is normally in a downward trend afterward though.
You can check that post for some historical charts and the chart leading up to the eclipse yesterday. For simplicity, I’m just going to post the days leading up to yesterday on $VIX and this ‘resolution’ that is occurring so far (pull back).
Hurray, you were seemingly right so far! I wish I took your $NQ_F and $HG_F trades!
Yeah, that’s actually true. Those both worked out very well for me (copper is a highly conductive metal…magnetism and electricity are obviously related, so the impact of it caused by the solar eclipse is implied).
More importantly, on the subject of esoteric things and the stock market…there’s one more thing to look at for a trade idea here.
As mentioned in the previous article, the impact of solar eclipses on gravitational forces and markets can sometimes take at least 2 days to play out major moves (e.g. – the spike in copper last night and nearly immediate impact on U.S. markets during the day after the eclipse and following through today).
However, different parts of the world are impacted differently by the eclipses depending on where the band of the eclipse occurred.
Meaning the band at total eclipse is impacted the fastest, but the parts of the globe touched by the outer reach of the bands respond more slowly.
[image courtesy: https://www.timeanddate.com/eclipse/map/2017-august-21#]
As you can see, Russia was touched by the outer bands of the eclipse. Which, to me at least, as well as some financial astrologers I’ve read means the impact on Russian markets should show up today/tomorrow. Whether that impact will be positive or negative remains to be seen.
Based on how the rest of the world in the bands have responded to this move, I think it’s a bullish thing for Russia and likely Natural Gas as well. I have not opened a position yet, but will likely buy some Calls soon. Russia via the Vaneck Vectors ETF ($RSX) is up today, but I think that upside will continue through tomorrow.
The options chain seems to agree. Today’s biggest buyers think something will happen but aren’t totally sure what so they traded a NOV17 $20 straddle. I’m watching the NOV17 $21 Cs for a purchase before close today.
What’s going to happen?
I have no idea. I can only quote Billy Joel….
You may be right I may be crazy But it just may be a lunatic you're looking for Turn out the light Don't try to save me You may be wrong for all I know But you may be right..