A lot of market bottoms happen in March and October. Stocks tend to V-bottom. Commodities? They consolidate, base, then turn. And the last one is weird… full moons. Seriously. Full moons. At first, I thought he was joking. But then I started looking into it. Turns out, Paul Montgomery—a legit market analyst—had studied this for years. He found that major market bottoms often coincided with full moons. Not because of astrology or magic, but because of investor psychology. See, when markets tank, it’s never about the numbers. It’s about sentiment.
Panic selling. Extreme fear. The absolute peak of capitulation. And weirdly enough, these emotional extremes tend to cluster around full moons. Montgomery’s research showed it, and history backs it up—some of the biggest market bottoms formed within a few days of a full moon. Now, am I saying go out and trade based on moon cycles? No. But if you’re ignoring sentiment, you’re missing half the picture. This guy I worked with — he didn’t trade off moons alone. He used sentiment, positioning, technicals, price action. The full picture. And he made money while others scratched their heads. My Own Take: Patterns like this? They only work when markets are at extremes.
Extreme fear. Extreme offside positioning. Everyone caught leaning the wrong way. That’s when sentiment beats fundamentals. That’s when emotions drive price action.