How to leverage solar cycle 25 for investing in Dow and beyond in 2024: Sunspot cycle and market returns


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This post probes the complex interplay between sunspot activity and market prices, questioning the oversimplified view of solar maximums and minimums as mere guiding US stock market trends or pivot triggers. We at Gann Explained delve into this nuanced connection, utilizing historical data from solar cycles 21-24 to shed light on the potential influences of the current Solar Cycle 25 on the 2024 market trend.

The never-revealed secret: Influence of solar cycles on the financial market explained

The Solar Cycle doesn't directly dictate stock market trends. Instead, each solar maximum and minimum uniquely align with the peaks and bottoms of specific financial assets. For instance, Gold, the Nikkei Index, Nasdaq, and West Texas oil have each demonstrated distinct correlations with solar cycles 21, 22, 23, and 24, respectively.

Solar Cycle 21 and Gold: A clear correlation between sunspot activity and gold prices was observed, with price movements echoing solar patterns.

Solar Cycle Sunspot Cycle and Gold market

Solar Cycle 22 and Japan’s Nikkei Index: This cycle saw the Nikkei Index's performance aligning with sunspot activity trends.

Solar Cycle 22 Sunspot Cycle Japan Nikkei Index

Solar Cycle 23 & Nasdaq: Nasdaq's rise and fall mirrored the solar activity, particularly during the dot-com bubble.

Solar Cycle Sunspot Cycle 23 Nasdaq

Solar Cycle 24 and West Texas Oil: Oil prices reflected the solar cycle's pattern, with similar growth and decay phases.

Solar Cycle 24 Sunspot Cycle West Texas Oil

Market outlook by gann explained: Tracking solar cycle 25's market influence in 2024

Solar Cycle 25 commenced with its solar minimum phase in 2020, and with NOAA's recent projections pointing to a peak between January and October 2024, the question arises: how will this influence the market?

Solar Cycle 25 and market prediction

Pro-Tip: To conduct this analysis and projection, we assess a broad spectrum of financial assets. We focus on identifying those who experienced their lowest points in 2020 and are currently on a consistent upward trajectory, reaching new highs or approaching their peak during this ongoing phase.

Bitcoin and Solar Cycle 25: Currently, Bitcoin does not show a clear alignment with the Sunspot cycle, presenting an anomaly in the pattern.

Solar Cycle 25 Sunspot Cycle Bitcoin 2024

Dow Jones Industrial Average: The Dow experienced lows in early 2020 and is currently peaking, possibly in sync with the solar cycle.

Solar Cycle 25 Dow Jones DJI DJIA 2024

US Interest Rates: Similar to the Dow, interest rates bottomed in early 2020 and are now rising, possibly following the solar pattern.

Solar Cycle 25 Sunspot Cycle US Interest Rate 2024

3 Tips for Trading in Solar Cycle 25

#1. Stay Updated with NOAA Forecasts: Regularly check the NOAA's monthly updated sunspot forecasts to stay ahead.

#2. Match Financial Assets with Solar Cycles: Identify and track the price movements of assets that correlate with Solar Cycle 25. Remember, the impact of this cycle will eventually diminish, underlining the importance of deepening your understanding of cyclical influences in the market

#3. Expand Your Perspective: This analysis aims to provide W.D. Gann traders with an expanded understanding of Gann's cycle theory, particularly in its connection to the narrative elements like the Appearance, Disappearance, and Reappearance of Marie in "The Tunnel Thru the Air." At Gann Explained, our mission is to offer a fresh perspective on Gann's work, going beyond a literal interpretation of his texts and delving into the deeper, more nuanced meanings and applications in trading strategies.

Conclusion:

While the Solar Cycle's influence on markets is not a straightforward cause-and-effect relationship, its correlation with financial trends cannot be overlooked. By understanding and incorporating these natural cycles into market analysis, you can gain a unique perspective and edge in your investing and trading.

Next Steps:

To determine if the stocks, indices, or commodities in your portfolio align with the solar maxima and minima of Solar Cycle 25, look into whether they experienced a significant low in early 2020 and are currently peaking or making new highs. It's crucial to remember that the influence of this cycle may not be constant and will switch off. Always stay mindful of your risk tolerance and ensure you implement a stop-loss strategy for added security.
 

Khit Wong and all members of Gann Explained LLC are NOT financial advisors, and nothing they say is meant to be a recommendation to buy or sell any financial instrument. All information is strictly educational and/or opinion. By reading this, you agree to all of the following: You understand this to be an expression of opinions and not professional advice. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and education and does not constitute advice. The brand name of Gann Explained LLC will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You are solely responsible for the use of any content and hold Khit Wong, Gann Explained LLC all members harmless in any event or claim. FTC DISCLOSURE: Any income claims shared by myself, students, friends, or clients are understood to be true and accurate but are not verified in any way. Always do your own due diligence and use your own judgment when making buying decisions and investments in your business.

Editors’ Picks

EUR/USD remains on the defensive near 1.0680 on Dollar strength

EUR/USD remains on the defensive near 1.0680 on Dollar strength

The solid performance of the Greenback keeps the price action in the risk-associated universe depressed so far on turnaround Tuesday, sending EUR/USD to multi-day lows in the 1.0680 region.

EUR/USD News

GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.

GBP/USD News

USD/JPY recovers as traders buy the dip

USD/JPY recovers as traders buy the dip

USD/JPY rebounds after the heavy sell-off on Monday. US Dollar traders are buying the dip after possible intervention by the authorities pulled USD/JPY down. The interest rate differential between Japan and the US is likely to maintain a bullish pressure on the pair. 

USD/JPY News

Editors’ Picks

EUR/USD remains on the defensive near 1.0680 on Dollar strength

EUR/USD remains on the defensive near 1.0680 on Dollar strength

The solid performance of the Greenback keeps the price action in the risk-associated universe depressed so far on turnaround Tuesday, sending EUR/USD to multi-day lows in the 1.0680 region.

EUR/USD News

GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.

GBP/USD News

Gold stable below $2,300 despite mounting fears

Gold stable below $2,300 despite mounting fears

Gold stays under selling pressure and confronts the $2,300 region on Tuesday against the backdrop of the resumption of the bullish trend in the Greenback and the decent bounce in US yields prior to the interest rate decision by the Fed on Wednesday.

Gold News

XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response

XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response

Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.

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Eurozone inflation stable as the outlook on prices gets increasingly muddied

Eurozone inflation stable as the outlook on prices gets increasingly muddied

Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.

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