
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 !
|