Stock Market Astrology VIII

Stock Market Astrology Part VIII - ( SMA & Dow Jones Theory )

( Copyright - G Kumar 20/10/2003 )

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 !

Ever since our first article was written two months ago, the Sensex has gone over by 1000 points. Our subscribers have become wealthier and more knowledgeable. They are ready to take calculated risks and take advantage of the stock market boom. ( I had been getting frequent phone calls from Bombay & Madras, congratulating me for identifying the initial trend as Bull Phase I and for the accuracy of my forecasts ). We successfully identified the crash from 4469 to 4105 as a secondary reaction or a bull decline and told our subscribers to stay invested while many panicked and sold off their entire holdings !

We will warn them when the market is in an overbought condition. That will be the time to get out of the market. Contrarian principles should be adhered to, if one wants stock market success ! ( " Sell when everybody is buying" )

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 7.4 % ), rising agricultural growth ( 4.3%), rising forex reserves ( $ 90 billion ) and rising exports. Steel exports have risen to 47%, software 34% and auto 34%. Steel boom will last for 2 more years, according to Seshagiri Rao, Director-Finance, Jindal Vijayanagar Steel. It is true that some negative factors, Saturn in the 12th ( rising imports ) and Mars in the 8th ( delaying of disinvestment ) are detrimental factors to the Indian economy. But Rahu trining Jupiter will give the economic impetus which the nation is hoping for !

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 !