September 1997

The Galactic Trader



In Galactic Trader, developer Jeanne Long has put together a unique method for identifying turning points, as well as support and resistance levels in price, combining Gann studies with astrological principles.


1835 US1 South #119 Suite 353
St. Augustine, FL 32084

Phone: 904 723-3650

Fax: 904 726-9511



Product: Market timing analysis via financial astrology and selective Gann methods Equipment requirements: IBM-PC compatible, minimum Pentium III 400 Mhz, 64 MB RAM, SVGA monitor, CD-Rom, Windows 98 or later, Windows NT4 SP4 or later.

Price: End-of-day format: $599. Real-time format: $799.
Options: Combine with the Fibonacci Trader software, end-of-day format: $1095. Real-time format, $1649.

Using astrological signatures as a market timing tool for identifying potential major reversals in financial and commodity markets is a phenomenon that has grown rapidly in the past 15 years. Much to the chagrin of many analysts and advisors who employ only conventional methods of fundamental and technical analysis ≠ and steadfastly refuse to consider the possibility of astrology as a market timing indicator on the belief that "it shouldn't work and therefore it doesn't work" ≠ there is a growing number of traders, investors, brokers and fund managers who find uncanny correlations between certain planetary and lunar cycles to significant crests and troughs in market prices.


The major purpose of Galactic Trader is to identify specific astrological correlations to historical and then potential future major reversals in financial, commodity and stock markets.


The study of astrology has been around for thousands of years. Its correlation to market prices has been referred to in the works of George Bayer, Gustave Lambert-Brahy, Donald Bradley, David Williams and W.D. Gann, as well as others, during the first half of this century. However, it wasn't until 1977 that any formal quantitative studies on the subject were initiated, and soon thereafter the interest in the field began to grow.

One of the leaders in this renaissance has been Jeanne Long, professional trader and researcher in financial astrology and student of the works of W.D. Gann. Author of two books, Basic Astrotech and The Universal Clock, Long has put together a unique method for identifying turning points, as well as support and resistance levels in price, utilizing the combination of Gann studies with specific astrological principles. These same methods ≠ and more ≠ have now been combined in the new software she has developed, The Galactic Trader.

The Galactic Trader software arrived with an owner's handbook and tutorial, along with five floppy disks (four for the program and one data disk). It's a standalone program; it didn't require the purchase of any other market program to operate. Further, it supported many of the more popular data vendors such as CSI, MetaStock, CompuTrac, S&P ComStock and TC2000.

The installation process required the attachment of a hardware key lock, a security feature. Once the key lock was attached, the installation of the program itself went very smoothly. As with most state-of-the-art Windows programs, this one simply required going to the Run command of the Program Manager (Windows 3.1) or the Start option (Windows 95), followed by typing in “A:SETUP” and then pressing enter. After that, it was a matter of following the instructions on the screen. Within a few short minutes, the system was loaded, an icon for the program displayed on my desktop, and on double-clicking the icon, the opening screen for Galactic Trader appeared, ready to go. No glitches.

The menu items at the top of the opening page follow a logical route to using the program. The manual is clearly written to follow the order of these items. Each menu item contains various command options, which are also clearly described in an orderly fashion in the manual. That both the program and the manual are designed in an orderly fashion should be of great value to users, making the program easy to implement. Unlike many programs that take days and even weeks to get accustomed to, Galactic Trader can be utilized with some amount of confidence and comfort fairly quickly.

The major purpose of Galactic Trader is to identify specific astrological correlations to historical and then potential future major reversals in financial, commodity and stock markets (Figure 1). In addition, Galactic Trader identifies areas of price support and resistance based on an integration of planetary positions with the Gann wheel of 24. Almost all of the original methods employed in Galactic Trader can be designated as leading indicators, determined by the results of the program's search routines using historical price charts. This is not a trading program. It is a market timing program, and like all market timing programs or those dealing with leading indicators, it is best used in combination with other market studies, such as technical analysis.



FIGURE 1: GALACTIC TRADER. Here's an example of the Galactic Trader screen. Notice that the market reversals tend to be near the Mars/Jupiter aspects (squares with fat bars) and the sun/Jupiter aspects (circles and squares with narrow bars).

However, those deciding to go with a wealth of technical study programs that come with Galactic Trader or with the Fibonacci Trader software option can combine these leading indicators with more traditional and some innovative coincident or confirming indicators. (Editor's note: The Fibonacci Trader software, developed by Long's husband, Robert Krausz, will be reviewed by STOCKS & COMMODITIES for the November 1997 issue.) For example, combining these features can enhance one's trading and investing skills substantially; one can anticipate the formation of a trough or crest through Long's timing methods, then confirm the change in momentum using the Fibonacci Trader or the various technical studies that are included with the program.


After importing historical price data, the user is ready to put the market timing features of Galactic Trader to work. Most of the material on which Galactic Trader's unique value is dependent can be found in the Planets menu. Within this category are six options: Planetary Lines, Aspects, Aspect Research, View Ephemeris, Live Planetary Clock, and Astronomical Time Bands.

Astrology's reputation as a market timing tool rests primarily upon its ability to consistently identify important reversals in price trends within a span of a few days. These periods are mostly determined by those dates in which, first of all, a planet enters a new sign, known as an ingress, or second, a planet forms a specific spatial ≠ mathematical ≠ relationship to another planet, known as an aspect.

But not all planets affect all markets in the same way. The Galactic Trader can quickly take any aspect between any two planets or any planet entering a new sign, or a combination of each, and plot it on any historical price chart in a database. This feature alone saves hours of hand notations placed upon scores of price charts, as was the norm in W.D. Gann's day. This way, each student can observe for him- or herself which astrological signatures actually worked historically for each market.


FIGURE 2: OPENING SCREEN TO ASPECTS. Here, the user can choose which astrological signatures to plot on a historical price chart ≠ either individual signatures or a combination of signatures.


But it doesn't end there. By going into the Aspect Research option (Figure 2), you can then get a printout of future times when those same signatures will unfold. With these two features, you'll be able to determine what geocosmic correlations were present in the past for a particular market of interest, and when those same signatures will be present in the future. Then, as those future times arise, the trader is prepared for the possibility of a significant reversal in that particular market.

As an example, I decided to plot the 30- and 45-degree multiples of Venus/Uranus upon a daily graph of the Nikkei Index. I chose this because I knew through weeks of hand-plotted studies that this combination seemed to consistently correspond to changes in price trends within an orb of three trading days. I wanted to see if Galactic Trader supported my manual research, and if in fact it would perform these routines.



FIGURE 3: PLANETARY SIGNATURES. Venus/Uranus signatures of 30-degree (square symbols) and 45-degree (circle) multiples in the Nikkei stock index.


To my pleasant surprise, it did. The results can be seen in Figure 3. These multiples of a single Venus/Uranus aspect correlated to tradable trend reversals in 10 of 12 instances, within an orb of only three trading days, and usually only two. Setting up this study through the Aspects option ≠ as clearly explained in the program manual ≠ was easy. The calculations and plotting routines of Galactic Trader were almost immediate. Further, I was pleased to see the many stylistic options that could be used to designate these dates. Printing out a list of future dates in which these signatures will unfold through the Aspects Research option was also a snap.


The Planetary Lines option allows the user to determine which ≠ if any ≠ planetary longitudes, latitudes or declinations might correlate to price levels of support or resistance in any given market. The assumption here is that every degree of the zodiac potentially correlates with a price value. Since the planets orbit around the sun (heliocentric view) or Earth (geocentric view), and their positions are measured by the 360 degrees of their respective elliptical orbits starting from zero degrees of Aries through 30 degrees of Pisces, each market may have a unique price correspondence with a specific planet or group of planets. This was an idea first made popular by the legendary trader W.D. Gann, and elaborated upon in Long's Universal Clock. (Editor's note: An additional feature of Galactic Trader is a wheel section showing the planets on the W.D. Gann wheel, as demonstrated in Universal Clock.)


FIGURE 4: OPENING SCREEN OF PLANETARY LINES. The user can choose a combination of planetary indicators here, along with the 24-price line. In this example, the 24-price line, heliocentric Mars line and the geocentric Saturn line were chosen. The results are shown on a November soybean chart, shown in Figure 5.


With this Planetary Lines option of Galactic Trader, the user is given a list of all planets to choose from. But that's not all. He can then choose whether he wishes the price correspondence to be based upon heliocentric or geocentric longitudes, or the wheel of 24 (a Gann derivative favored by Long), or a combination (see Figure 4). Once the choices are made, the user simply exits from this indicator screen. The planetary indicators are then superimposed as price lines of support/resistance within the chart itself.

I decided to test this feature on a daily chart of November 1996 soybeans. From the Planetary Lines opening screen, I first selected the 24 Price Line. Basically, this indicates support or resistance at every 24-cent multiple in soybeans. Long favors this Gann level of support because it divides neatly into the 360-degree zodiac by a divisor of 15. Her research into Gann's studies indicated that Gann himself favored this division. Obviously, the 24-line will be shown as a horizontal price line on the chart.

Next, I decided to add the planetary price lines correlating with the daily geocentric longitude of Saturn. Since Saturn moves slowly through the zodiac (actually around the sun as seen from Earth), it would plot a horizontal line with a slight curvature. Finally, I decided to also add the planetary price line for heliocentric Mars. Since it would represent more movement than Saturn (its orbit around the sun is about 12 times that of Saturn), it would produce more of a diagonal line and thus show more areas of shorter-term support and resistance.

The results of plotting these three factors are shown in Figure 5. The reader can see for himself just how well these lines coincided with support and resistance in the November 1996 soybean contract.


FIGURE 5: PLANETARY LINES OF SUPPORT AND RESISTANCE. Planetary lines of price support and resistance, using the Gann 24 line, Saturn geocentric and Mars heliocentric degrees.

Other areas of support and resistance can be shown by the mirror lines, which are a reverse calculation of these planetary lines. The mirror lines can be shown only in combination with the planetary lines, depending on how much data on the screen your mind can assimilate.


Another very useful option in the Planets category is Aspects Research, where the user can move backward or forward on the slick calendar provided on the opening screen. He can choose a specific date and instantly see a listing of all planetary phenomena occurring that day. He can then choose any one of those phenomena, go into another part of this feature, and request a one-month or one-year printout of all dates in which this individual signature ≠ or combination of signatures ≠ occurred or will occur.

A variation of this operation can be accessed right from the price chart itself. Say you wondered what was happening astrologically on March 11, 1997, when the Dow Jones Industrial Average (DJIA) made a crest (unconfirmed in the stock index futures), followed by the first 10+% decline in several months. You can pull up the bar chart for that period (assuming you have it in your historical data), set the mouse pointer on the price bar for that date, and left-mouse click once. That will quickly bring you into the Aspect Research screen, as shown in Figure 6.


FIGURE 6: ASPECT RESEARCH. Aspect Research option to the Planets category.


FIGURE 7: THE OPTION PAGE OF ASPECTS RESEARCH. Here, you can customize which planetary phenomena you wish to access for a given period in this section of the program.

Galactic Trader gives an immediate listing of astrological signatures present that day, according to those the user customizes in the options section of this screen (shown in Figure 7). You can quickly access signatures present on any other day of the month simply by clicking on a different date. Or since you might know that actual market reversals can be off by as much (or little) as three trading days from a particular geocosmic signature, you can choose to see a listing of all signatures present for that month by simply choosing the Month button (see Figure 8). On March 8 there was both a new moon and a Pluto retrograde signature. On March 10, Mars formed a 120-degree aspect to Neptune (known as a trine). On March 12, Mars formed a conjunction to the north node of the moon, and on March 14, Mercury opposed Mars.


FIGURE 8: ASTROLOGICAL SIGNATURES. Here's a listing of astrological signatures present for any particular month, according to parameters you set forth in Aspects Options, as shown in Figure 7.


Any one of those or a combination might have a high correlation to either crests or reversals in stock prices in the past. How can you find out? Just go back to the Aspects section and set the parameters to search for only those signatures you just observed. Galactic Trader promptly places those signatures (and only those signatures) onto your price history. By scrolling back through time on the chart, you can observe clearly what happened to stock prices during the times of those signatures.


Several other astronomical features are available in Galactic Trader ≠ too many to cover in a short review ≠ but traders will also be interested to know that the program contains a multitude of technical studies that can be added. These can be accessed through the Indicators menu item. In all, there are 75 studies available, including many popular indicators such as moving average convergence/divergence (MACD), relative strength indicator (RSI), stochastics, moving averages, parabolics, Andrews lines, trendlines, Fibonacci retracement levels and others.

The user also has the option to change the default settings of each of these. If you order the Fibonacci Trader option, you can access and display several other innovative technical tools in combination with the timing (and standard technical) features of Galactic Trader.

In the Systems option of the top-level menu bar, you can combine many indicators ≠ both astrological and technical ≠ and save them all as a system. This saves the time of having to configure each indicator again on each future use. There is also a very useful Help option on the program, and a tutorial in the back of the manual, especially helpful for those who might be novices at astrology or about certain chart pattern setups for trading.

Although I focused primarily on the end-of-day program, Long also has Galactic Trader available in real time. Here, the planetary lines of the daily chart can be superimposed over the intraday bars. Likewise, all the technical tools applied on the end-of-day program can be applied on smaller time frames, such as the five-, 10- or 30-minute bars.

Consistent with the astronomic features of Galactic Trader, all the technical features can be customized according the user's preference of color and style options. In fact, the designer and programmer seemed consistently conscious to create many options for the user's viewing and use. There are a wealth of easy-to-use icons along the top and sides of the screen for quick accessibility. These icons include features unique to the program, as well as useful Windows accessories, such as being able to write ≠ and erase ≠ text within the charts, zoom, crosshairs, change number of bars on a page and so forth. Galactic Trader is not only powerful, it is a joy to use.


Like 90% of the market community, I wondered what clues astrology might provide about a possible high in the US stock market, and I decided to find out using Galactic Trader. I remember reading that sun/Jupiter and/or Mars/Jupiter transits tend to be nearby when the stock market changes trend. It's not that every signature will correlate with a crest, but the reverse ≠ if an important crest is to appear, most likely it will be accompanied by one of these signatures close by in time. I knew both signatures were present in late August 1987 when this important crest was forecast in the stock market long before it happened.

Just to be sure, I ran a chart on the Djia for the past 250 trading days and placed these signatures onto it via Galactic Trader (see Figure 1). Sure enough, impressive market reversals did indeed occur within just a couple of days of these aspects in about two-thirds of the cases shown.

So when will these aspects occur in the future? With Galactic Trader, this is also easy to find. With a couple of clicks, you can go into the Aspects Research feature of Planets, sets the options to locate only those aspects between the sun, Mars and Jupiter, then to the File option, then to the Print One Year command, and presto! You have a chronological listing of all the dates when these signatures will unfold, each one potentially a major reversal in the DJIA.

There is one weakness in Galactic Trader: The screen only displays planetary data up to one month into the future, making the One Year Preview feature accessible only through a printout. Other than that, Galactic Trader is worth every cent. I recommend it highly for traders and investors who do not have a bias against the subject, and who are looking for tools that can enhance market timing.

Raymond A. Merriman is a market timer, cycles analyst, and Commodities Trading Advisor (CTA) for The Merriman Market Analyst. He is the editor of the MTA Cycles Report, a market advisory letter specializing in stock indices, interest rates and Treasury bonds, precious metals, currencies and grain markets and the author of several books on financial market cycles.

Long, Jeanne [1993]. The Universal Clock, Pas, Inc.

_____ [1986]. Basic Astrotech, Pas, Inc.

Matlock, Charles Clifford [1977]. Man and Cosmos, Development Cycles Research: Waynesville, NC.

Merriman, Raymond A. [1982]. The Gold Book: Geocosmic Correlations to Gold Price Cycles, Mma Publishing: West Bloomfield, MI.