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Stock Market Astrology Part VIII  -  ( SMA & Dow Jones Theory 

                                                                        - By 

                                   

                    

Technical Analysis alone cannot identify the initial primary trend and thinks that the start of the Primary Bull Market is a bear rally. Conversely the start of a Primary Bear Market is seen erroneously as a bull decline. Stock Market Astrology sees these initial points in an intuitive flash ! It is clear that Predictive Astrology can supplement Technical and Fundamental Analysis ! 

We do not claim that all predictions of Stock Market Astrology will be cent percent accurate. If it was so then astrologers would own half the world. We can say that Probability for accuracy is 70% ! While Mundane Astrology gives us the political map, Financial Astrology gives the economic picture of the nation. Technical and Fundamental Analyses are good diagnostic tools in the stock market. But they cannot attain perfection without Predictive Astrology, which itself is another diagnostic tool !

 

Ever since our first article was written two months ago, the Sensex has gone over by 1000 points. Our subscribers have become wealthier and more knowledgeable. They are ready to take calculated risks and take advantage of the stock market boom. ( I had been getting frequent phone calls from Bombay & Madras, congratulating me for identifying the initial trend as Bull Phase I and for the accuracy of my forecasts ). We successfully identified the crash from 4469 to 4105 as a secondary reaction or a bull decline and told our subscribers to stay invested while many panicked and sold off their entire holdings !

We will warn them when the market is in an overbought condition. That will be the time to get out of the market. Contrarian principles should be adhered to, if one wants stock market success ! ( " Sell when everybody is buying" )

Determination of Trends as per Dow Jones Theory

Let us analyse how Dow Jones determines trends.

"Successive rallies penetrating preceding high points with ensuing declines terminating above preceding low points offer a bullish indication. Conversely, failure of rallies to penetrate previous high points with ensuing declines carrying below former low points is bearish. Inferences so drawn are useful in appraising secondary reactions and are of major importance in forecasting the resumption, continuation or change of the primary trend. A rally or a decline is defined as one or more daily movements resulting in a net reversal of direction exceeding three percent of the prices of either average. Such movements have but little authority unless confirmed in direction by both averages, but the confirmation need not occur on the same day. "  ( The ABC of Stock Speculation ).

What it means is that the Bear Phase is characterised by falling resistance and support levels & Bull Phase vice versa !

Theoretically nice, but all this is very difficult to implement.

Intuition alone can identify trends

Determination of trends is the major factor for stock market success. We find that there is confusion in applying the principles of Technical Analysis. A crash of the market may be seen as a bull decline and the start of a Primary Bull Market may appear as a bear rally. Again the duration of the Bull Phase or a Bear Phase is not known to Technical Analysis.

The British philosopher Schelling defined Intuition as " that faculty of the Absolute, which perceives the Absolute as the Absolute ". In other words, Intuition alone can see Reality. Aurobindo averred that " behind the phenomenal world is the Transcendent Reality which Intuition alone can see". It was Intuition alone which revealed the Ultimate Reality to  Aurobindo, Ramana Maharshi & Sankara .

If Absolute Reality can be known by Intuition, why not stock market trends ?

Celestial causes for the rise of the Indian economy

Jupiter, the significator of finance, in India's lunar second, in the House of Wealth can only mean an economic boom. Rising GDP growth ( as per CMIE 7.4 % ), rising agricultural growth ( 4.3%),  rising forex reserves ( $ 90 billion ) and rising exports. Steel exports have risen to 47%, software 34% and auto 34%.  Steel boom will last for 2 more years, according to Seshagiri Rao, Director-Finance, Jindal Vijayanagar Steel. It is true that some negative factors, Saturn in the 12th ( rising imports ) and Mars in the 8th ( delaying of disinvestment ) are detrimental factors to the Indian economy. But Rahu trining Jupiter will give the economic impetus which the nation is hoping for !

Dow Jones Theory is not Infallible

It is not an infallible system of beating the market and its successful use requires serious study and the summing up of evidence must be impartial. The wish must never be allowed to father the thought

There are slight complaints that our articles are too informative or too intellectual. What we have done here is to acquaint ourselves with the Dow Jones Theory, which are the collective research findings of Charles Dow, Hamilton & Nelson and to incorporate Intuition, which alone can determine trends ! Right information is crucial to success. Adam Smith, the father of Economics  remarked that " there is no substitute for information. The market is not a roulette wheel. Good ideas and good research are an absolute necessity in the market place ". We are one of the best researched dotcoms in the world. Stay invested and we will warn you about the dangers ahead !

 

                                                                                                                                                           

                                    

                                                                 Stock Market Astrology Part II  

                                                                             - By 

"The great fortunes on stock exchanges have been made not by those who knew what to buy and sell but by those who have mastered the art of buying and selling at the correct time and price "

In the Stock Market timing is all important

 

Portfolio Management Astrology

Astrology can be a diagnostic tool like Fundamental Analysis and Technical Analysis. 

One should understand one's beneficial planets and invest in the industries ruled by those planets. If Jupiter is strong in your horoscope, you can invest in Pharma shares like Ranbaxy, Dr Reddy's, Aurobindo Pharma & Divi's Labs. . If Venus is strong, you can invest in Auto Industry shares  like Maruti and Tata Motors. . If Mercury is strong, you can invest in Telecommunications like Bharti Tele, MTNL & Shyam Tele. . Saturn rules Steel and if you find Saturn powerful in your horoscope, you can invest in steel shares such as SAIL, Tisco, Jisco & Jindal Steel. Mars rules electricity and if Mars is powerful in your natal chart, you can invest in shares such as BSES , Tata Power & Alsthom Power. If Rahu is strong, IT shares like Infosys, HCL Info & Hughes Software. . Oil is ruled by Saturn and such shares as IOC, ONGC etc are good choices if your Saturn is powerful.  PSU shares are ruled by the Sun and BP, HP etc can bring home the bacon if Sun be indeed strong in your horoscope.

While picking shares, one should avoid Chandrashtama and negative transits. Beneficial Jupiter can veto all other negative transits. The Transit of the North Node, Rahu is also very important. ( I only entered the market when my Jupiter transited the 2nd and Rahu the 10th and my Portfolio is showing profit ). Venus also ruled business and has a major say in stock market dynamics. One should consult not only a financial expert but also an astrologer as Luck can be a major factor in stock market speculation.

Knowledge - a Prerequisite

Knowledge of Stock Market dynamics is also a prerequisite. One should understand the Wave Theory - that the Stock Market fluctuates all the time, even within a day. If it is a Bull run, then the Market will rise but only as a Wave. If it is a Bear Phase, the Market will descend as a Wave. The Market reacted after touching an all time high of 4469 this time. It descended as a Wave to 4105 and then ascended to today' s level of 4382 ! If you can take advantage of the small booms and busts within the Bull Phase or the Bear Phase, Fortune will favour you !

The two emotions which rule are Greed & Fear. If you can control Greed and Fear, you have won ! If you can keep your equanimity when everybody seems to lose theirs, Fortune will grace you. If on the other hand, if you succumb to Greed and Fear, you will be part of the crowd. Being part of the crowd will get you nowhere; you can only make others rich !

Speculation - A dangerous temptation

You may  be  tempted to speculate. Avoid speculation. A speculator is he who takes big risks to gain profits. Be an intelligent investor ( an investor is he who takes only calculated risks ). If you gain because of speculation one day, the next day you will lose. "What you gain on the swings, you lose on the roundabouts", remarks Peter Lynch.

Contrarian Investing

If you had entered TISCO at 130, by now your capital would have been doubled. Just imagine if the Sensex reaches 5500 or above. TISCO will be 500 ! So this calculated risk is what the intelligent investor should take. Not only TISCO but other good scrips will aid you in capital appreciation. Be a good contrarian investor, one who buys cheap and sells dear ! 

Risk Management

It is true that high returns have high risks associated with it. So we should not be too greedy and if we get decent profit, we should get out of that scrip. Paper profits are no good and booking profits is the most essential aspect of investment. If you dont sell your shares at the proper time ( known as the Contrarian's skill of selling high ), you cannot in reality make profits. Now the Market is dominated by the FIIs ( Foreign Institutional Investors ) whose habit is to book profit immediately. They will not wait , like Harshad Mehta, for ACC to become 10000!. So understand the nature of the market. Book profits every now and then. If you book profits, your money is freed for recycling. You can buy other scrips at declines. Since the market is ever  fluctuating and never steady at the same Index, , you will get opportunity to buy at declines. A bust is an opportunity for buying. A boom is an opportunity for selling.  Manage your risks !

Cash Flow and the Stock Market

The FIIs so far have invested more than $ 14 billion. This cash flow has enabled the Sensex to reach 4382. If they withdraw this cash, the market will come down. During boomtime, money chases stocks. Now it is money chasing stocks. You should beware about the Bear Phase. It will be shares chasing money, then ! So book profits every now and then and be on your toes ! 

 

Electional Astrology

Hart de Fow and Robert Svoboda in their book " Timing & Astrology" remarks that the best days which are auspicious are,  in order, Thursday, Friday, Monday and Wednesday.  If you plan long-term investments,  you should select these days for picking up potential blue-chips.

 

This article is not based merely on theoretical principles. I have been dabbling in the Stock Market since 1987 and some scrips have given me good returns. Reliance ( my Venus is favourably posited in the 11th in Taurus ), Infosys ( my Rahu favourably posited in the 6th, in Sagittarius ) & Dhanalakshmi Bank  ( my Jupiter is  in the Ascendant in Cancer ) have given me good capital appreciation!  Experience is the best teacher ! Stock Market timing is all in all.  The marma of the Stock Market happens to be contrarian timing, that is, buying when scrips are very low and selling them when they are very high !