INEFFICIENT MARKET HYPOTHESIS - 3/31

There are some remarkable parallels between the current course of the stock market and what happened at the time of the last significant (10%) correction in stock prices in 1994. In 1994, the DJIA topped-out at the psychologically important 4000 mark with the full moon following an exceptionally tight seven-planet alignment in mid-January (the potential influence of the planetary alignment was duly noted in a Wall Street Journal article at the time, "A Rare Planetary Bodes A Bust For Booming Stock Market", 2/12/94, p.B1). This year, the DJIA peaked around the psychologically significant 7000 mark with the new moon/solar eclipse after a tight seven-planet alignment on February 6/7 of this year (see http://www.gaiamind.org/).

Shortly following the planetary alignment tops in the DJIA around psychologically important thousand marks, the Fed raised interest rates for the first time in years both in 1994 and this year. In both cases, the interest rate hike precipitated a major stock market reversal from the preceding planetary alignment tops around psychological barriers.