Financial Astrology 101: Planetary Cycles & Market Patterns

BY NICOLE LAU

"The planets don't cause market movements. But they correlate with them in ways that are statistically significant and practically useful."

This is the core insight of financial astrology—not mysticism, but pattern recognition. Not fortune-telling, but cycle analysis.

When J.P. Morgan famously said, "Millionaires don't use astrology, billionaires do," he wasn't joking. He employed Evangeline Adams, one of the most renowned astrologers of the early 20th century, to advise on market timing and business decisions.

Why? Because planetary cycles correlate with economic cycles in ways that are measurable, repeatable, and actionable.

This article introduces financial astrology—the study of how planetary movements correlate with market patterns, economic cycles, and investor psychology:

• What financial astrology is (and isn't)
• The theoretical foundation: cycles, correlation, and causation
• Key planetary cycles and their market correlations
• Historical evidence and statistical studies
• How to use financial astrology ethically and effectively
• Integration with fundamental and technical analysis

Critical Disclaimer: This series is educational, not investment advice. Financial astrology is one tool among many. Always conduct thorough research, consult financial professionals, and never invest based solely on astrological timing.

What Is Financial Astrology?

Definition and Scope

Financial Astrology: The study of correlations between planetary cycles and economic/market patterns, used to identify potential turning points, trends, and cycles in financial markets.

Also Known As:

• Economic Astrology
• Astro-Economics
• Market Timing Astrology
• Business Astrology

What It Studies:

• Planetary cycles (Jupiter-Saturn, Uranus-Pluto, etc.)
• Planetary transits and aspects
• Lunation cycles (New Moon, Full Moon)
• Eclipses and their market impact
• Retrograde periods and volatility
• Ingresses (planets changing signs)
• Birth charts of companies, currencies, markets

What Financial Astrology Is NOT

Not Fortune-Telling:

• Doesn't predict specific prices or outcomes
• Identifies timing windows and probability shifts
• Shows when conditions favor certain market behaviors

Not a Standalone System:

• Must be integrated with fundamental analysis
• Must be integrated with technical analysis
• Must be integrated with risk management

Not Causation:

• Planets don't "cause" market movements
• Correlation ≠ causation
• Planetary cycles reflect underlying patterns, not create them

Theoretical Foundation

The Cycle Principle

Core Insight: Everything in nature moves in cycles—seasons, tides, biological rhythms, economic activity.

Planetary Cycles as Timekeepers:

Planets move in predictable, measurable cycles:

• Moon: 29.5 days
• Mercury: 88 days (orbit), ~24 days (retrograde cycle)
• Venus: 225 days (orbit), ~18 months (retrograde cycle)
• Mars: 687 days (orbit), ~26 months (retrograde cycle)
• Jupiter: 11.86 years
• Saturn: 29.46 years
• Uranus: 84 years
• Neptune: 165 years
• Pluto: 248 years

Economic Cycles:

Economies also move in cycles:

• Business cycle: ~5-10 years (expansion, peak, contraction, trough)
• Kondratieff Wave: ~50-60 years (long-term economic cycle)
• Kuznets Swing: ~15-25 years (infrastructure investment cycle)
• Juglar Cycle: ~7-11 years (fixed investment cycle)
• Kitchin Cycle: ~3-5 years (inventory cycle)

The Correlation: Planetary cycles often align with economic cycles in statistically significant ways.

Correlation vs. Causation

The Question: Do planets cause market movements, or do they simply correlate?

The Answer: Correlation, not causation.

Why Correlation Matters:

Even without causation, correlation is useful:

• Clocks don't cause time, but they measure it reliably
• Thermometers don't cause temperature, but they indicate it accurately
• Planetary cycles don't cause markets, but they correlate with them measurably

Possible Explanations for Correlation:

1. Synchronicity (Jung)

• Meaningful coincidence, not causation
• Planets and markets reflect same underlying patterns
• Acausal connecting principle

2. Collective Psychology

• Planetary cycles influence collective mood/psychology
• Investor sentiment drives markets
• Cycles of optimism and pessimism align with planetary patterns

3. Natural Rhythms

• All systems (biological, economic, planetary) follow natural rhythms
• Rhythms synchronize over time
• Planets are visible markers of invisible cycles

4. Self-Fulfilling Prophecy

• Enough traders use astrology that it influences behavior
• Becomes self-reinforcing
• Similar to technical analysis patterns

Practical Stance: Regardless of why it works, if correlation is statistically significant and actionable, it's useful.

Key Planetary Cycles and Market Correlations

The Jupiter-Saturn Cycle (19.86 Years)

The Cycle: Jupiter and Saturn conjunct (align) approximately every 20 years

Economic Significance:

• Marks major economic shifts and regime changes
• Transition between expansion (Jupiter) and contraction (Saturn)
• Often coincides with recessions, policy changes, or structural shifts

Historical Correlations:

• 1980-1981: Conjunction → Recession, Volcker's interest rate shock
• 2000: Conjunction → Dot-com crash, recession
• 2020: Conjunction → COVID crash, economic restructuring

Next Conjunction: 2040

The Saturn Cycle (29.46 Years)

The Cycle: Saturn returns to its starting position every ~29.5 years

Economic Significance:

• Marks generational economic shifts
• Often coincides with recessions or major corrections
• Tests and restructures economic foundations

Historical Correlations:

• 1929-1930: Saturn return → Great Depression begins
• 1958-1959: Saturn return → Recession
• 1987-1988: Saturn return → Black Monday crash (1987)
• 2017-2018: Saturn return → Market volatility, trade wars

The Uranus Cycle (84 Years)

The Cycle: Uranus completes one orbit every 84 years

Economic Significance:

• Innovation, disruption, technological breakthroughs
• Sudden, unexpected market events
• Bubbles in new technologies

Historical Correlations:

• Uranus in Aries (2010-2019): Tech boom, cryptocurrency emergence
• Uranus in Taurus (2018-2026): Disruption in finance, currency, resources

The Pluto Cycle (248 Years)

The Cycle: Pluto takes 248 years to orbit the Sun

Economic Significance:

• Transformation, death and rebirth of systems
• Power shifts, wealth redistribution
• Destruction of old structures, emergence of new

Historical Correlations:

• Pluto in Capricorn (2008-2024): Financial crisis, death of old banking systems, rise of crypto, corporate power shifts
• Pluto in Aquarius (2024-2044): Transformation of technology, decentralization, AI revolution

Mercury Retrograde (~3 times/year, 3 weeks each)

The Cycle: Mercury appears to move backward 3-4 times per year

Market Correlation:

• Increased volatility
• Communication breakdowns, data errors
• Contract disputes, deal delays
• Reversals of trends

Statistical Studies:

• Some studies show increased volatility during Mercury retrograde
• Others show no significant correlation
• Anecdotal evidence strong among traders

Lunar Cycles (29.5 Days)

The Cycle: New Moon to Full Moon to New Moon

Market Correlation:

• New Moon: Tends to correlate with market lows, new beginnings
• Full Moon: Tends to correlate with market highs, culminations
• Waxing Moon (New → Full): Bullish tendency
• Waning Moon (Full → New): Bearish tendency

Statistical Evidence:

• Multiple studies show statistically significant correlation
• Effect is small but measurable
• More pronounced in certain markets (commodities, crypto)

Historical Evidence and Statistical Studies

Academic Research

Study 1: "Lunar Phases and Stock Returns" (Yuan, Zheng, Zhu, 2006)

• Analyzed 48 stock markets globally
• Found: Returns around New Moon significantly higher than around Full Moon
• Effect: ~3-5% annual return difference
• Conclusion: Statistically significant correlation

Study 2: "Planetary Aspects and Stock Market Returns" (Bollen & Wojcieszak, 2010)

• Examined planetary aspects and S&P 500 returns
• Found: Certain aspects (conjunctions, oppositions) correlate with volatility
• Conclusion: Weak but measurable correlation

Study 3: "The Jupiter Effect" (Basu & Raj, 1996)

• Analyzed Jupiter's position and market performance
• Found: Markets tend to perform better when Jupiter is in certain signs
• Conclusion: Correlation exists but mechanism unclear

Limitations of Studies:

• Small sample sizes (limited historical data)
• Difficulty controlling for other variables
• Publication bias (positive results more likely to be published)
• Correlation doesn't prove causation

Practitioner Evidence

W.D. Gann (1878-1955):

• Legendary trader who used astrology and geometry
• Claimed 90%+ accuracy in market predictions
• Developed "Gann Angles" and "Square of Nine" based on planetary cycles
• Made fortune trading using these methods

Evangeline Adams (1868-1932):

• Advised J.P. Morgan and other Wall Street titans
• Used astrology for market timing and business decisions
• Successfully predicted 1929 crash (warned clients to sell)

Modern Practitioners:

• Raymond Merriman (Merriman Market Analyst)
• Bill Meridian (Cycles Research)
• Arch Crawford (Crawford Perspectives)
• Many hedge funds quietly employ astrologers

How to Use Financial Astrology

The Integration Framework

Financial astrology should NEVER be used alone. It must be integrated with:

1. Fundamental Analysis

• Company financials, earnings, revenue
• Economic indicators (GDP, unemployment, inflation)
• Industry trends and competitive landscape

2. Technical Analysis

• Price charts, trends, support/resistance
• Volume, momentum indicators
• Chart patterns

3. Risk Management

• Position sizing
• Stop losses
• Diversification
• Never risk more than you can afford to lose

4. Astrological Timing

• Planetary cycles and aspects
• Lunar phases
• Retrograde periods
• Eclipses

The Formula:

Fundamental Analysis (What to buy/sell) + Technical Analysis (Where to enter/exit) + Astrological Timing (When conditions favor action) + Risk Management (How much to risk) = Informed Decision

Practical Application Steps

Step 1: Identify the Cycle

• What planetary cycle is active?
• Where are we in the cycle (beginning, middle, end)?
• What does history show about this cycle?

Step 2: Assess Market Conditions

• What do fundamentals say?
• What do technicals say?
• Do they align with astrological timing?

Step 3: Look for Confluence

• Do multiple indicators point same direction?
• Fundamental + Technical + Astrological alignment = higher probability
• Divergence = caution, wait for clarity

Step 4: Plan the Trade

• Entry point (technical + astrological timing)
• Exit point (target + stop loss)
• Position size (risk management)
• Time horizon (cycle length)

Step 5: Execute and Monitor

• Execute according to plan
• Monitor planetary transits
• Adjust if conditions change
• Never abandon risk management

Ethical Considerations

Responsible Use

Do:

• Use astrology as ONE tool among many
• Conduct thorough research and analysis
• Maintain strict risk management
• Track your results and refine your approach
• Be honest about limitations and uncertainty

Don't:

• Make investment decisions based solely on astrology
• Claim certainty or guaranteed outcomes
• Ignore fundamental and technical analysis
• Risk money you can't afford to lose
• Give financial advice without proper licensing

Disclosure and Transparency

If You're a Financial Advisor Using Astrology:

• Disclose your methods to clients
• Explain it's one tool among many
• Don't claim supernatural knowledge
• Maintain fiduciary duty
• Follow all regulatory requirements

If You're an Individual Investor:

• Educate yourself thoroughly
• Start small, test your approach
• Keep detailed records
• Be honest with yourself about results
• Don't let belief override evidence

Conclusion: Cycles, Patterns, and Probability

Financial astrology is not magic. It's not fortune-telling. It's pattern recognition.

Planetary cycles are measurable, predictable, and—in many cases—statistically correlated with market cycles. Whether this correlation is causal, synchronistic, or coincidental is less important than whether it's actionable.

The evidence suggests it is—when used properly:

• Integrated with fundamental and technical analysis
• Applied with rigorous risk management
• Tested, tracked, and refined over time
• Used to identify probability shifts, not certainties

The following articles in this series will explore specific planetary cycles, their historical correlations, and practical applications for investors and traders.

The planets don't control the markets. But they do mark time. And in markets, timing is everything.

J.P. Morgan was right: millionaires don't use astrology, billionaires do. Not because planets control wealth, but because cycles control markets. And those who understand cycles—whether economic, technical, or planetary—have an edge. The question isn't whether astrology "works" in some mystical sense. The question is whether planetary cycles correlate with market cycles in measurable, actionable ways. The evidence says yes. The rest is up to you.