Stock Market Astrology IX

We have seen that the primary trend is always interrupted by secondaryrntrends and a bust can happen in a primary booming market. Mostrndeceptive is the secondary reaction ! Investors shiver when such arnsecondary reaction happens. Many panic and sell off their entirernholdings. It is difficult to identify this secondary trend because one doesrnnot know whether it is the beginning of a primary bear market or arnsecondary reaction. Intuition alone can identify secondary trends. Thernforemost amongst the intuitive sciences, Astrology, here comes to ourrnrescue. The investor population in India did panic when the Sensex slid from 20400rnto 18000. Normally a secondary reaction lasts from 3 weeks to 3 months. Thernmarket recovered only after 3 weeks. Many panicked and thought that thisrnsignalled a bear phase. It was disproved only after 3 weeks when the marketrnsurpassed 20000 ! We have declared that Intuition alone can determine trends. Amongst thernScientia Intuitiva, the foremost science Astrology can definitely determinernprimary, secondary and tertiary trends. That Jupiter's transit of the secondrncan fuel an economic boom was known to the sages. " Nana Dukham VitharnSamriddhi " - thus runs an aphorism, meaning that Jupiter's transit of thernsecond can trigger a stock market boom, if the stock market can indeed berntaken as a barometer of the economy ! We will define secondary reactions which are a bull decline in a Bull Phasernand a bear rally in a Bear Phase. Secondary Reactions Nelson remarks that " A secondary reaction is considered to be an importantrndecline in a bull market or advance in a bear market usually lasting from 3rnweeks to 3 months during which intervals the price movement generallyrnretraces from 33 percent to 66 percent of the primary Price change since therntermination of the last preceding secondary reaction. The reactions arernfrequently erroneously assumed to represent a change of primary trend,rnbecause obviously the first stage of the bull market must always coincidernwith a movement which might have proved to have been nearly a secondaryrnreaction in a bear market, the contrary being proved after the peak has beenrnattained in a bull market. " ( The ABC of Stock Speculation ). While theoretically it is easy to talk about primary trends and secondaryrnreactions, practically it is difficult for an invester who has invested allrnhis savings in an unpredictable market. The investor's normal reaction to arndecline is to panic. Suppose you buy Reliance for 2800. After 2 daysrnReliance becomes 2780 ! What will you do ? You panic thinking that a bearrnphase has started and will sell the scrip at a loss. Then later, say after 3rnweeks Reliance starts its climb and becomes 3000 ! So the investor needsrnguidance from technical and fundamental experts. But can FundamentalrnAnalysis and Technical Analysis guide him ? If FA and TA could guidernmillions, we wont have so many losers ! This indicates the scope for anotherrnanalyst - The Stock Market Astrology expert - who alone can determinerntrends based on the intuitive sciences ! Now a secondary reaction is taking place and the Sensex had slid down torn4700 levels. 4930 meant an overbought situtation and a correction had tornoccur. You can either hold on to your portfolio ( as this is merely arnsecondary reaction in a primary upward market ) or sell off and enter whenrnthe Sensex is 300/400 points down. There is no need to panic as thisrnreaction is secondary and not primary. Even though we are confronted with a Bull Market now, we will deal with arnBear Market which will come after some time as the Market is cyclical. The Primary Bear Market According to Nelson " A primary bear market is a long downward movementrninterrupted by important rallies. It is caused by various economic ills andrndoes not terminate until the stock prices have thoroughly discounted thernworst that is apt to occur. " ( The ABC of Stock Speculation ).rnWhen we take a graph and when we find falling resistance ( high ) andrnsupport ( low ) levels, we can deduce the primary trend as a Bear Phase.rnWhen we see secondary rallies known as bear rallies, we can identify thernsecondary trend as rallies in the primary bear market .Tertiary trends arernunimportant.rnNelson categorically states that " a primary downward market isrncharacterised by a) extinguishment of all hopes upon which the stocks werernpurchased at inflated prices b) selling due to decreased business andrnearnings c) distress selling of sound securities, ragardless of theirrnvalue, by those who must find a cash market for at least a portion of theirrnassets." When the Sensex slid from 6151 in 2001 to 2900 at the beginning of 2003, itrnsignalled a Bear Phase. There were many rallies but they were all secondaryrnrallies in a primary falling market. Stock markets are cyclical and he whornknows about the cyclical nature of the stock market grieves no more ! Tertiary Trends - Daily Fluctuations Nelson averrs that " the third and usually unimportant, movement is therndaily fluctuation. Nevertheless, the day to day pattern must be studiedrnbecause they nearly always develop into a pattern easily recognised andrnhaving a forecasting value." ( The ABC of Stock Speculation ) Relation of Volume to Price Movements Says Nelson " the market, which is in an overbought state, becomes dull onrnrallies and develops activity ( read as volume ) on declines. Conversely,rnwhen the market is in an oversold condition, the tendency is to become dullrnon declines and active on rallies. Bull markets terminate in a period ofrnexcessive activity and begin with comparitively light transactions. " ( ThernABC of Stock Speculation ) Manipulation "Manipulation is possible in the daily movements and secondary reactions arernsubject to such an influence to a more limited degree, but the primary trendrncan never be manipulated". ( The ABC of Stock Speculation ). The primary trend is caused by a variety of economic factors and is notrnmanipulated although there were some manipulations in the tertiary andrnsecondary movements. There can be corrections. We have to understand that they are mere secondaryrncorrections in a primary bull market. Patience alone can win the game for usrn! He who exhibits one man's intelligence and six men's patience alone canrnwin !