The term Equinox directly relates to the brief lengthening of a day to a full 12 hour day, 12 hour night. This happens by having the center of the sun be on the same plane as the earths equator. Thus marking the start of the new season. An equinox takes place at two specific moments a year, roughly around march 20 / 21 ( spring) and September 22 /23 (fall).
This generally creates a scare in the stock market world because in theory, the changing of the season influences financial cycles. Through observation is has been recorded that the stock markets gains have been more focused from november to april.
This occurrence has been recorded in 3 different periods of time. from 1950 to 2004 all stock market gains were most concentrated from November to April. The average compound return from 55 Nov - April cycles was 7.62%. from 1900 to 2004, 86% of the stock market gains were in the Nov- April cycles, with an average compounded return of 4.27%. Lastly from 2000-2004 the equinox had a very clear attribute. The average compounded return went up to 5.5% from the Nov - April cycle, 5% more then the Average compounded return of .5% in the Jan -December cycle.
Through observation is has been proven that the November through April cycle provides the highest compounded returns, which could really impact the way many people are handling there stocks.
by, josh feroleto.
http://www.signaltrend.com/InvTips/SpringFallEqunoxPart1.html
http://en.wikipedia.org/wiki/Equinox
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