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Stock Market Astrology Part XIII
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By G
Kumar It is said that the legendary stock market and commodities trader, W D Gann made 50 million dollars from the stock market. He used astro charts for trading. How famous is his wheat chart ! One of his close friends wrote "It is very difficult for me to remember all the predictions and operations of Mr. Gann which may be classed as phenomenal, but the following are a few: In 1908 when Union Pacific was 168-1/8, he told me that it would not touch 169 before it had a good break. We sold it short all the way down to 152-5/8, covering on the weak spots and putting it out again on the rallies, securing twenty-three points profit out of an eighteen point wave."
W D Gann wrote
in his " Tunnel Through the
Air " - "It is so simple and
easy to solve problems and get correct answers and results with figures that it
seems strange so few people rely on them to forecast the future of business,
stocks & commodity markets. The basic principles are easy to learn &
understand. No matter whether you use geometry, trigonometry, or calculus, you
use the simple rules of arithmetic. You do only two things: You increase or
decrease."
The Theory of Planetary Harmonics
In my 18 years as an investor, I
have found that some Industry scrips are
favourable while others are not. Tech stocks like Infosys & Wipro always
give me good returns. Bank shares also give me capital appreciation. On the
other hand, I could not book profit in scrips in the Steel Industry and
Auto. On checking my horoscope I found that Rahu, the North Node ( Tech
stocks ) and Jupiter ( bank stocks ) are favourable in my chart while Saturn (
steel ) & Venus ( auto ) were afflicted.
The Concept of Intrinsic Market
Value
Intrinsic Market Value is the true
value of a share and can be obtained by multiplying the EPS ( earnings per
share ) with the Industrial P/E ( Price per earnings ratio - Market Price/ EPS
). IMV is the basis of Fundamental Analysis and it reflects the Company's true
fundamentals. ( Our software computes the IMV of all shares as well as eps, p/e,
average market price etc and warns you when the market is in an overbought
condition ).
Definition of Support &
Resistance Levels
Support and Resistance levels are
popular terms, popular to both the trader and the investor. Support Level
indicates a readiness to absorb all selling & Resistance Level means
readiness to absorb all buying. Enough buying pressure to halt a downtrend
in prices for an appreciable period is Support and Resistance means the exact
reverse of support - selling significant in volume to satisfy and
even overwhelm all bids which would stop prices from going
higher for a period of time.
Support / Resistance
Support means a concentration of
demand while Resistance means a concentration of suppy. When sufficient demand
for a stock appears to halt a downtrend , it is called Support. This
demand has the ability to even reverse the downtrend.
Conversely, Resistance is a price level at which enough supply of stock can stop
and even force a reversal of its uptrend. There is always a certain amount of
demand/supply at any given price level and it is one which is
dominant at that particular moment which will determine
the direction of the future trend.
Rationale
Volume in any particular stock
veers towards concentration at several price levels, usually converting into a
reversal point in the stock's trend. The Law of Periodicity states that such
reversals tend to repeat themselves ( History repeats itself ). It has been
observed that these price reversal points switch
from Resistance to Support and vice versa. An earlier top becomes a
bottom & vice versa according to changing primary trends.
Validity of Levels - Volume,
Distance, Time
Volume - Volume is an important and a fundamental
criteria in estimating the validity of both levels. The quantum of volume
generated would help in deciding the validty of a level.
Distance - Distance ( the extent of the subsequent
advance or decline ) is very important and greater the distance, greater the
resistance.
Time - The resistance level of a stock two years back is
more effective than one which is 4/5 years old.
The Vedic description
of Astrology as a Lamp in Darkness corresponds to the Jungian prescription of
Astrology as a diagnostic tool.
The importance of the Birth
Constellation
The helplessness of man is in
every step he takes. One may be out of job for petty reasons, one may see one's
business falling due to no fault of one's own, one sees enemies on the rise even
when one succeeds. It is all Fate and human helplessness ! The Heavenly Light
that is Astrology reveals that vicissitudes are part of Life and fortunes always
fluctuate in Life. To understand these vicissitudes, Astrology can of immense
help. Particularly when we deal with the stock market, which is unpredictable
& fluctuating, cyclical & volatile ! It is not a stock market, it is a
shock market !
According to Vedic Astrology, the most important
star is the birth constellation and it rules the whole of our
destiny.
Intuition & experience confirm the
concords of Science and Philosophy. Intuition and experience has it that some
stars are benevolent for us and others not. Here we give below the stars which
are favourable and which are not.
No
Name
Nature
Effect
So when we go for trading, it is better to check out whether the day is favourable or not for us. The 3rd Star and the 7th star are to be avoided at all costs. In order to test this theory, I did trade on the forbidden days and saw that I lost in speculation ! .
If we observe the vicissitudes
which are happening in our lives, we can see that many
auspicious things happen on the days ruled by the 2nd, the 4th, 6th, 8th and 9th
stars. Conversely, many inauspicious things happen on the days ruled
by the 3rd, 7th, 1st and 5th stars. The former Prime Minister of India,
Nehru, died on the day of the 7th Star or the Death Star. Vicissitudes are part
of life, we have to live with them, but then here you have a Celestial
Guide ( Astrology ) which prepares you to absorb the best & face the worst !
Result- you are freed from both positive and negative stress !
An ounce of luck
is worth tons of talent. In order to enhance luck, it is better to wear the
Birthstone or rather the gem of the planet which is positive in your
horoscope. As per the Positive Method in Gemology, the trinal lords play an
important role in one's luck. The Ninth lord is the Lord Of Fortune, the Fifth
is Ninth from the Ninth and the Ascendant Lord rules Self. So it is better to
wear the gem of the most positive planet in your horoscope so that you will be
blessed by this positive planet. |
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