There is a lot of literature about the relation about the Monn Phases and Stock Market return, here I will mention just one academic paper that does a good job in showing empirical evidence about it and describing it: "Are investors Moon Struck? Lunar Phases and Stock Market Returns" (Yuan, Zheng, Zhu,University of Michigan 2001).
We will not stop here at the well known observation that Moon phases influence human behavior and hence create minor stock market cycles, we will try top take a further step forward: in this article we show how the Moon is not only a useful timing instrument for trading but it is more than that, we will show how the Moon sometimes provide traders not only with timing information but also with pricing information.
The example we are going to illustrate is based on the Full Moon of April 18, 2011 at 2:44 UT with the Sun at 27°44' Aries and the Moon at 27°44' Libra.
First let's look at the Zodiac wheel for the exact time of the Full Moon of April 18, 2011:
Zodiac Wheel: Full Moon of April 17, 2011 at 22:43 ET
Then let's switch to the Financial Zodiac Wheel for the same exact time. In the Financial Zodiac Wheel we can see the Planets, Sun and Moon on the Ecliptic and financial instruments as if they were planets moving along the Ecliptic: the idea of representing financial instruments as if they were planets moving along the ecliptic makes it easier to visualize the relative position (i.e. price) to the planets (this is practically the inverse approach of Planetary lines that are used to visualize planets as if they were financial instruments). In this particular case we focus on the position (i.e. price) of the Emini future: we can see that Sunday night April 17, 2011 at 22.44 ET in New York it was trading overnight on Globex at 1317 or 30 degrees away from the Full Moon.
Financial Zodiac Wheel: Full Moon of April 17, 2011 at 22:43 ET
Now let's look what happened during the day on Monday April 18, 2011 when the US cash stock market opened for trading: the S&P500 index dropped almost 2% closing 20 points lower (or 20 degrees of westward motion on the ecliptic) while the Moon in the meantime almost completed 10 degrees of eastward motion along the Ecliptic. When the US stock market closed the Emini future settled at 1299 and the Moon was at 8°45'Scorpio: as you can see in the Financial Zodiac Wheel below the Emini Future and the Moon were conjoined. The Full Moon day was a timing signal for a major market move and the Full Moon Position was a pricing signal: the market settled (found it closing equilibrium) right at a price equivalent to the Moon position (in this case we have 1299/6=Moon position on the Ecliptic when the market closed on Monday 18, 2011 at 16:15 ET) .
Financial Zodiac Wheel: Full Moon of April 18, 2011 at 16:15 ET
Skeptics will call this coincidence, astro traders used to observe this kind of patterns know well that this is no chance, it happens often, many times during Full Moon or New Moon days the market settle or makes a top/bottom at prices that are harmonically linked to the position of the Moon on the Ecliptic. If you do not intend to take a prejudicial view on this subject and you prefer to study it by yourself before deciding whether it makes sense or not, you should start by observing what happened during past and then begin observing these phenomena in real time on the next Full Moon and New Moon occurrences looking for patterns to emerge. A useful instrument to facilitate your studying may be our Financial Zodiac Software, an astrotrader's tool that we have developed to track planetary phenomena like this and many others.