Stock Market Astrology Part X

100 years ago, nobody would have believed that the US' GNP will exceed $ 13 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.

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.

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.

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 or Financial Astrology. Jupiter , the planet of expansion, rules Bull markets while Saturn, the planet of contraction, rules bear markets. One should identify the Impulse and Corrective Phases and this requries the help of Mathematics and Astrology. The Intuition, which sees things by flashes, can reveal trends and can identify Impulse and Corrective Phases.

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. Jove therefore is a major planet in Nifty and Sensex Astrology. Jupiter in the 9th and 10th in US' horoscope made the U S markets rise.

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 !