A new market timing theory predicts market tops and bottoms by the emergence of new moons and full moons. The theory is not exact and must be used with other indicators to be successful. However, Steven Whiteside of TheUpTrend.com, always takes note when either a full moon or a new moon presents itself. The market does not react everytime one of these events takes place. Yet when the markets to make large moves, very often the moons are in line. The theory states that when markets have hit their top a new moon is formed. When the market is oversold a full moon is generally present. This was true at the peak of the stock market in 2007 and when the low was hit March 2008. Skeptics do find it eerie that the theory aligned itself so well to the market the past two years.

There are many unconventional theories to the stock market. Everyone has heard of random walk. Statistically it has been proven that if you throw darts at stock tickers in the newspaper you are likely to do as well as the average mutual fund return. If random walk works, it might be fun to explore these other theories. Please note: thetrademachine.com does not endorse or use any of these theories in its expert advisors.

The Boston Snow Indicator – If Boston has a “White Christmas” meaning that they received significant snowfall the indicator would predict the stock market will rise over the course of the next year.

Presidential Election Years – The stock market generally rises during presidential election years. Now just because out of the last 21 election years the market has risen 18 times does not make this an obvious indicator. In 2008 when Obama took office the stock market fell 37%. This would have been a bad year to follow the theory, however had you checked for new moons and seen that it did not snow in Boston maybe you could have avoided getting crushed this year.

Trading should be simple. There are many indicators and theories out there to choose from. If you are feeling overwhelmed with it all check out some of the automatic trading programs from www.thetrademachine.com They have all been tested over an 8 year period with positive results. Best of all they do not require any time or decisions on your part. Just set the programs and let them work for you.