Stock Market Astrology VII

Stock Market movements are governed by mainly five factors - fundamental,rntechnical, macroeconomic, political & planetary ! Nelson who wrote the 'ABC of Stock Speculation ' designated the researchrnfindings of Dow Jones as the Dow Jones Theory. Charles Dow was frank inrnstating that his Theory is not infallible and that the real method ofrnforecasting the duration or extent of a primary trend was unknown tornTechnical Analysis ! Identifying the Primary Trend is difficult. Even Secondary Reactions arerndeceptive. There is only one Science which can forecast this and it is StockrnMarket Astrology ! Fundamental Analysis concentrates on the Intrinsic Value of the Share, butrnIntrinsic Value has no practical value, as stock prices are eitherrnoverpriced or underpriced. Technical Analysis can indicate whether thernmarket is bearish or bullish, but cannot easily identify trends. Thernbeginning of a Primary Bull Market may appear as a bear rally. Similarly thernstart of a Primary Bear Market may appear as a bull decline. There arernunknown & hidden factors determining stock market movements likernmacroeconomic, political and planetary factors. Neither Nelson's book ' ThernABC of Stock Speculation' nor Hamilton's " Stock Market Barometer" supposed to be a Bible for stock investors ) take these hidden factors intornconsideration. Stock Market Astrology alone takes into cognizance all thernfive fundamental factors and can identify primary trends and secondaryrnreactions ! rnIn our earlier articles, we have already given all the five factorsrnresponsible 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'srnGDP growth was just 3 %. After that GDP grew at an average 6%. Jupiter wasrnin Leo in 1991 and now Jupiter has completed one Jupiter Cycle of 12 years.rnHe is starting another cycle and we will have better growth. His transit ofrnScorpio was a bullish factor for India ( He was in India's lunar fifth, tillrnNov ) Economic boom ( Vitha Samruddhi ) has always been predicted whenrnJupiter transits the 2nd. CMIE points out that this year GDP growth will bern7.4 %. We had in our earlier articles identified the primary trend as bullish. Arnsecondary reaction is expected at any moment now. The market can dip byrnabout 400/500 points and we have already warned our subscribers about thisrndanger. During the market dip you can either hold your portfolio or sell offrnat high levels and enter at low levels ! The Dow Jones Theory states that Markets move in three trends - primary,rnsecondary & tertiary. Primary Movement The first, and the most important is the primary trend which is the broadrntrend ( which is upward or downward ) which is known as a bull or bearrnmarket extending over periods which may vary from less than a year tornseveral years and is generally interrupted by secondary reactions. Secondary Movement Second and the most deceptive movement is the secondary reaction - anrnimportant decline in a bull market or a rally in a primary bear market andrnwhich usually lasts from three weeks to three months. Tertiary Movement The third movement is the daily fluctuation. This is the least important ofrnall the three movements. The Primary Bull Market Averaging more than 2 years, a primary bull market is a broad upwardrnmovement, interrupted by secondary reactions Due to improved businessrnconditions and increase in speculative activity stock prices advance becausernof demand created by both speculation and investment. There three characteristics of a bull period are 1) Revival of business confidence due to optimismrn2) The rise of stock prices to the known improvement in corporate earnings.rn3) Speculation is rampant - a period when stocks rise on expectations &rneuphoria. We have seen that there is an economic revival, corporate earnings have gonernup and speculation is becoming the order of the day. The investor population is confused, they do not know whether it is the endrnof a Bull Phase and the beginning of a Bear Phase. I was talking to a friendrnand he is of the opinion that the market is overheated and may crash at anyrnmoment ! Things are not so.