When a company reports
better-than-expected earnings, it is no guarantee the price of the
stock will move significantly, as any day trader can attest. Traders
on the floor of an exchange often slough off such reports, putting a
damper on expectations. Similarly, indicators such as volume,
momentum or P/E ratios can lead investors to the wrong conclusions.
The seeming contrariness of the market leads some investors to the
feeling that something else is at work in the markets. Financial
astrologers believe they know what that 'something' is.
It would be foolhardy to
suggest that one should follow astrological indicators solely as a
basis for making financial decisions. Financial astrology should be
viewed as an adjunct to the resources of fundamental and technical
analyses. While some investors limit themselves to these traditional
methods, there is a growing number of traders utilizing astrological
analysis to boost the accuracy of their trading decisions.
When technical analysis
first came to prominence in the sixties, it was scoffed at by
traditional investors. It seemed incomprehensible to some traders
that a stock's price could be forecast using only the price history
of the stock. Today, financial astrology is met with the same
skepticism that was once levelled against the technicians. It is
likely only a matter of time before astrological analysis receives
widespread acceptance.
In financial astrology,
there is a lot of talk about cycles— the 20-year Jupiter-Saturn
cycle, the 15- to 20-year Pluto cycle, the 18-year cycle of the lunar
nodes, etc. These cycles give an overview of market trends over an
extended period of time and are therefore best suited to the needs of
the long-term investor. But what about the short-term investor? What
method does astrology offer to predict price levels a week or a month
from now?
The means to short-term
prediction is simpler than one might think. The short-term indicators
for a stock's price movement already exist in the form of the
historical data for that stock. It is the astrologer's task to
correlate the ups and downs in the historical price chart to
astrological influences in effect at the time. It is not always easy
to see the underlying astrological patterns which affect a stock's
price, but with enough patience, the patterns can be evoked. After
having done this type of analysis with numerous stocks over several
years, I am convinced there is a unique astrological makeup for each
stock, much like a birth chart, which makes it possible to accurately
predict a stock's future price movement. Once the major price
reversals in the historical data have been accounted for, future
price reversals can be laid out in a prescribed pattern.
The basis for making
trades astrologically is the use of a price chart, in every respect
the same as a standard stock chart, which indicates the peaks and
valleys of the stock's future price movement. Combined with
fundamental and technical analyses, it becomes a powerful tool. The
advantages of knowing the major price reversals for a stock in
advance are inestimable. Through astrological methods, an investor
can participate in all of the price gains for a stock while incurring
none of the losses. Through short selling or put options, he may even
gain from a stock's downward movement.
In constructing the ups
and downs of a stock's movement, the astrologer must consider two
things: (1) how sharply a stock price is likely to rise or fall and
(2) the duration of the move. The angle of a stock's rise or fall is
determined by the strength of the influence which brought it about.
To determine the price angle, I use an 11-point system as shown below:
The duration of a price
move is determined by how long an influence affects the stock without
being interrupted by another influence or superceded by a stronger influence.
Knowing the ups and downs
for a stock's price is only part of the story. A true chart of future
price movement must also contain the elements of projected growth and
price trend. Projected growth is an estimate based on the sector and
industry for the stock in question. If a stock is in the
telecommunications sector and the cell phone manufacture industry,
for instance, a sector analysis according to astrological influences
can estimate how much (as a percentage) the price is likely to move
up or down in a given time period. The changes in trend are
determined by the onset of those influences which most powerfully
affect the stock. A sample chart of future price movement is given below:
Help
