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[A742]Astrology And Stock Market

by G Kumar, G K

Nelson who wrote the 'ABC of Stock Speculation ' designated the research
findings of Dow Jones as the Dow Jones Theory. Charles Dow was frank in
stating that his Theory is not infallible and that the real method of
forecasting the duration or extent of a primary trend was unknown to
Technical Analysis !

Identifying the Primary Trend is difficult. Even Secondary Reactions are
deceptive. There is only one Science which can forecast this and it is Stock
Market Astrology !

Fundamental Analysis concentrates on the Intrinsic Value of the Share, but
Intrinsic Value has no practical value, as stock prices are either
overpriced or underpriced. Technical Analysis can indicate whether the
market is bearish or bullish, but cannot easily identify trends. The
beginning of a Primary Bull Market may appear as a bear rally. Similarly the
start of a Primary Bear Market may appear as a bull decline. There are
unknown & hidden factors determining stock market movements like
macroeconomic, political and planetary factors. Neither Nelson's book ' The
ABC of Stock Speculation' nor Hamilton's " Stock Market Barometer"
supposed to be a Bible for stock investors ) take these hidden factors into
consideration. Stock Market Astrology alone takes into cognizance all the
five fundamental factors and can identify primary trends and secondary
reactions !

In our earlier articles, we have already given all the five factors
responsible for the major bull run on the Indian bourses.

Correlation of Planetary Cycles & Economic Cycles

Jupiter Cycles & Indian Economy

When the Narasimha Rao Government initiated liberalisation in 1991, India's
GDP growth was just 3 %. After that GDP grew at an average 6%. Jupiter was
in Leo in 1991 and now Jupiter has completed one Jupiter Cycle of 12 years.
He is starting another cycle and we will have better growth. His transit of
Scorpio was a bullish factor for India ( He was in India's lunar fifth, till
Nov ) Economic boom ( Vitha Samruddhi ) has always been predicted when
Jupiter transits the 2nd. CMIE points out that this year GDP growth will be
7.4 %.

We had in our earlier articles identified the primary trend as bullish. A
secondary reaction is expected at any moment now. The market can dip by
about 400/500 points and we have already warned our subscribers about this
danger. During the market dip you can either hold your portfolio or sell off
at high levels and enter at low levels !

The Dow Jones Theory states that Markets move in three trends - primary,
secondary & tertiary.

Primary Movement

The first, and the most important is the primary trend which is the broad
trend ( which is upward or downward ) which is known as a bull or bear
market extending over periods which may vary from less than a year to
several years and is generally interrupted by secondary reactions.

Secondary Movement

Second and the most deceptive movement is the secondary reaction - an
important decline in a bull market or a rally in a primary bear market and
which usually lasts from three weeks to three months.

Tertiary Movement

The third movement is the daily fluctuation. This is the least important of
all the three movements.

The Primary Bull Market

Averaging more than 2 years, a primary bull market is a broad upward
movement, interrupted by secondary reactions Due to improved business
conditions and increase in speculative activity stock prices advance because
of demand created by both speculation and investment.

There three characteristics of a bull period are

1) Revival of business confidence due to optimism
2) The rise of stock prices to the known improvement in corporate earnings.
3) Speculation is rampant - a period when stocks rise on expectations &
euphoria.

We have seen that there is an economic revival, corporate earnings have gone
up and speculation is becoming the order of the day.

The investor population is confused, they do not know whether it is the end
of a Bull Phase and the beginning of a Bear Phase. I was talking to a friend
and he is of the opinion that the market is overheated and may crash at any
moment ! Things are not so.

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 !

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
8.5 % ), rising agricultural growth ( 4.3%), rising forex reserves ( $ 276
billion ) and rising exports. Steel exports have risen to 47%, software 34%
and auto 34%. . It is true that one negative factor, Saturn in the 2nd
rising
imports ) is detrimental to the Indian economy.

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 !

Article Source : Pg. 7

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