Stock Market Astrology Part I

" He who will study values and market conditions and exercises one man'srnintelligence and known patience for six men, will make money in stocks " - Dow Jones Cancer, India's Lunar Ascendant India's birth constellation is Pushya and India is undergoing the dreadedrnElarata Saturnine phase. India's Independence Chart ( 15/08/1947, 00.00 AM, Delhi ) Asc Taurus, Gulika and Mars in Gemini, Sun, Mer, Ven, Sat, Moo in Cancer,rnJup in Libra, Ketu in Scorpio rnWe had indicated that the Stock Market will go up & there will be viciousrnfluctuations and cyclical upheavals. There will be many small booms andrnbusts in the market. This is because of the Elarata Saturn which India isrnundergoing. The Stock Market revived due to Jupiter 's transit of the 5th. Jupiter, thernplanet of finance, can uplift the economy during his fifth transit. Nornwonder the media is talking about the 4.3 % agricultural growth, the 8.5 % GrnD P growth and the good monsoon which triggered it, Sensex above 20000, andrnthe growth of sectors which record growth - software, steel , auto &rnautomotive components ! Small booms and busts are to be expected. The Wave Theory still holds goodrnin stocks. The Sensex dipped after it touched 20000 and touched 18000rnearlier. But bull run means rising resistance and support levels. Correlation between Stock Market Cycles & Jupiterian Cycles The last boom was when Jupiter was in the 11th in India's horoscope (rn2001 ). Jupiter was in the adverse 12th and 1st in the next 2 years and wernhad the Stock Market in a state of Recession. Contrarian Investing This is the quintessence of the stock market. " Buy when everybody isrnselling, sell when everybody is buying", which in essence means " Buy cheap,rnsell dear". We have to understand the negative aspect of the secondary market. Thernsecondary market, taken in isolation and as a closed system, is basically arnzero sum game. When a man sells a share, either the buyer or the seller hasrnmade a mistake. Money only changes hands. So smart investing is ContrarianrnInvesting, buying at unjustifiably low levels and selling at unjustifiablyrnhigh levels ! There is no such thing as an Intrinsic Value for a share.rnMarkets are always irrational, unpredictable and fluctuating. There will bernintra-day fluctuations, intra-week fluctuations and intra-monthrnfluctuations. Within the Bull Phase and the Bear Phase, there will be smallrnbooms and busts, making it difficult to predict the future. There are twornways to combat these types of uncertain fluctuations - Technical Analysis and Fundamental Analysis Technical Analysis This is drawing the graph of the Index every day. All scrips display regularrnand recurrent patterns of price behaviour. During the last boom of 2001, thernSensex touched 6000, emulating the earlier boom. You will come to know aboutrnthe resistance & support levels of the Sensex and all scrips if you takernregular graphs. Graphs can be made in Excel. Fundamental Analysis F A is studying the fundamentals of scrips - the Book Value of a share, thernPrice/Earnings of a share, the EPS of a share and then investing based onrnthese fundamentals. You can buy the highly potential shares at their supportrnlevels. rnThe Cyclical Nature of the Stock Market & Business Cycles The Business Cycles of Boom and Recession rule all markets. A boom meansrnthat the economy has extended itself and a Recession becomes due to restorernit to its original balance. The Business Cycles of Prosperity and Adversityrncome to all men. We find that all markets are cyclical and the Stock Market is the mostrnvolatile of all markets. During the 1992 boom, the Sensex reached 4000 andrnthen it crashed to 2000 odd. During the Ketan Parekh initiated bull run ofrn2001, it reached 6151 ! The current boom may very well surpass that level !rnSlowly and steadily the crowd is getting involved and all sorts of bullishrnnews are given by the media. It is paradoxical that during Bull Phases allrnsorts of bullish news come from the media and during Bear Phases, onlyrnbearish news ! Scrips which are worth investing are IOC, ONGC, SBI, Dr Reddy's, Ranbaxy,rnCIPLA, Lupin, Tata Motors, HPCL, BPCL, IBP, Infosys, Hughes Software, HCLrnInfosys, G A C L etc.