" Millionaires do not use Astrology; billionaires do " - J P
Morgan
Stock Market Astrology Part
X
( Copyright - G
Kumar 23/10/2003)
100 years ago, nobody would
have believed that the US' GNP will exceed $ 5 trillion. Now China is
developing ( 7.5 % growth, GNP more than $ 3 trillion ) & India ( 7.4 %
growth, GNP more than $ 2 trillion at PPP estimates ). Nations as well as
individuals have Secret Cycles. Secret Cycles are known only to Financial
Astrology.
If you understand your
Secret Cycles, that can be the key to wealth !
You should have a trading
plan and must stick to that plan. Plan your work and work your plan. During
boomtime, the best trading plan is to create a portfolio. Buy fundamentally
sound stocks and if you think that a secondary reaction is going on, sell and
enter at lower levels. This is risky, as trend identification is difficult.
Stock markets are deceptive. If the Index reacts by 400 points, you can sell off
50% of your portfolio and enter at lower levels. For instance, if you had sold
Reliance when it touched its resistance level of 499, you could have
got some profit. You should know the earlier resistance and support levels of
the scrip ( The earlier resistance level of RIL was 434 and support level 396 ).
The earlier difference between the support and the resistance levels was 38. If
you deduct 38 from 499, you get 461. You can enter RIL at the 450/440 levels. It
was seen that after the secondary reaction at 434, RIL declined to 396 and then
catapulted itself to 499. An addition of 65 points and a
decline of 38 points. You can create a formula based on this data. Determination
of the three trends is the secret of successful
investing.
Playing the Investor and the
Bear
You can short sell the
securities you are having. Suppose you have 100 shares of RIL and you sell it at
499. You can buy it back when RIL becomes 460. You have gained 39 per share.
After 3 or 4 weeks, when the Market starts its climb and RIL peaks to 560, you
can sell it again and wait for it to descend. You can play this game as long as
you identify the primary trend as bullish and the secondary trend as a reaction.
Exploit the cyclical nature of the stock market and you can be
rich.
Playing the Bull in a Bull
Market
You can buy a scrip and sell
it off at the end of the day. If the scrip goes up, you can sell it off at
a profit. If it declines, you can take delivery of the share and sell it
off later when the scrip ascends. " Be a bull in a bull market and a bear in a
bear market " - this is the formula behind successful speculation. But you
should play this game only when the primary trend is identified as
bullish.
Playing the Bear in a Bear
Market
You can short sell and buy it at
declines. Of course this involves risk as there can be secondary and tertiary
rallies. If the market is extremely bearish, you can play this game. You should
play this game only when you identify the primary trend as bearish.
Stock Market Astrology alone
can identify the primary, secondary and tertiary trends. Trend determination is
the secret of success and trend determination can only be known to Intuition
!
Playing the Contrarian
Investor
This is to invest in fundamentally
sound scrips and enter at 2900 and sell off your entire holdings at 6000 !. For
example, you enter TISCO at 160 and sell it off at 550 ! This has been defined
as the Contrarian's skill of selling high !
Playing the Investor and the
Bull
Suppose you buy 100 Satyam
Computers at 220. Next day when it ascends you buy it again at 230. At the end
of the day Satyam is 238. You sell the 230 scrip and book a 8 bucks profit. Next
day again you do the same thing. For speculation the brokerage is
only .1%. You can play this game only when the primary trend is
bullish.
Trend Determination - A difficult
task
Even though the Dow Theory is true
in many aspects, its implementation is very diffcult. It is just like following
the dictum of Religion to love the enemy. Practically very difficult. Another
difficulty is the duration of the primary trend. While Dow states that a primary
bull market may last for almost 2 years, the 1992 boom in India lasted just 3/4
months. The conditions in the US are different from the conditions in India. We
find that the bull phases in India do not last for more than a year. The
determination of the duration of the primary trend is again difficult. Secondary
reactions normally last from 3 weeks to 3 months but the last secondary reaction
( Sensex down from 4469 to 4105 ) lasted less than 3 weeks !
There is a secondary reaction
happening now & the Sensex has lost almost 300 points. The secondary
reaction occurred when the Sensex touched 4930. This reaction can go on for one
more week.
There can be tertiary rallies in a
secondary reaction. That again is deceptive. In other words, stock markets
are extremely deceptive.
Speculation is dangerous but can
be done only in special circumstances. If all three trends are bullish, you can
play the bull. Conversely if all three trends are bearish, you can play the bear
and get away with it !
Astrology - A diagnostic
tool
While Laplace advocated
Probability as a weapon to cope up with Reality, Jung recommended Astrology as a
diagnostic tool . Newton and Bacon were thoroughly conversant in Astrology.
Gann, Bradley and Williams had done a lot of research in Stock Market
Astrology. Jupiter , the planet of expansion, rules Bull markets while
Saturn, the planet of contraction, rules bear markets.
Jupiter - the Initiator of Bull
Markets
Jupiter in the 11th triggered the
last stock market boom in India as Jupiter in the second triggered the present
boom. Jupiter in the adverse 12th & the Ist was responsible for the bear
phase which gripped Indian markets. Jupiter in the 9th and 10th in US' horoscope
made the U S markets rise.
Have a trading plan backed up by
Astrology
You should create a portfolio of
shares during boomtime and play the Investor during Bull Phases. During
secondary reactions, you should exit and enter at lower levels. You should exit
forever at very high levels ( like the 6151 point level of the Sensex ). The
Sensex may go beyond 6151 but you have made your profit by then. Zodiac
Stock Market Astrology will definitely identify trends for you !
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