Tuesday, January 22, 2008

Sensex down 875 points

Again Jove in the Sixth strikes. The Sensex loses 875 to 16.7 K !

This is terrific. It seems only the floor can stop the Sensex.

How correct is the Dow Jones Theory. The bubble seems to have burst

"Higher levels cannot be sustained ", said Dow Jones. Imagine Mukesh Ambani losing 32000 crores of market cap in one day.

Peter Lynch said " The bluest of all blue chips, supposedly the safest of all propositions, can be risky". This is the lesson we have to learn !

We had warned in our website, www.eastrovedica.com and in our blog http://stockmarketastrology.blogspot.com about the impending disaster
initiated by 6th Jupiter. We had warned our readers to switch over to real estate. The ideal investor buys at low levels and sell off at very high levels,say, at 21000 !

Monday, January 21, 2008

$166 Billion of Market Cap washed away !

While Reliance Power IPO collected close to 200 billion dollars, next day the market wiped out 166 billion market cap.

Mukesh Ambani became poorer by 32,000 crores and his brother by 14000 crores. Sunil Mittal of Bharti lost 6000 crores !

We had warned in our blogs, sites and lenses about the adverse nature of Jupiter's Sixth transit. We had advocated the investors to switch over to Real Estate, as we felt that the market was overheated. We had, from our 20 year's experience, known that Bull market ends in big tears !

This is the biggest fall ever for the Sensex, well over 1400 points. The PM and the FM point out that Indian economy is fundamentally strong and that the market fell on fears of recession in US market !

But who can know how Fate through the planets operates !

Every Bull Market Ends in Tears !

Jupiter in the Sixth had struck !

The Decoupling Theory has been overriden ! The Sensex is down by 1600 points now ( ato 0245 PM IST

We had warned in our website www.eastrovedica.com about the impending Crisis. We had asked investors to switch over to Real Estate. We came under some criticism for that. But now ultimately we have been proved right !

We had also forewarned about the 6th Transit of Jupiter, which will be adverse for India. India already is suffering from Elarata Saturn, the dreaded 7.5 year cycle.

The growth of the power sector has come down to 5%. GDP growth to 8.5. 70% oil is imported, despite some entreprenuers coming out with a one lakh rupee car ( which is commendable indeed ). We have only 60% gas. The coming 1.5 years of Elarata Saturn is bound to be tension ridden. We are hoping against hope that this will not affect the stock market. The Decoupling Theory states the China and India are insulated against global cues, particularly the Subprime crisis in the US ( Major investors like JP Morgan, Citi, Lehman etc has written over 100 billion dollars as losses )

Friday, January 18, 2008

Sensex falls to 19013 !

Dow down by 5%, Brazil 12% and India 8%. This is the fall recorded due to global cues. Hope the impending recession in the US will not trigger a global one !

J P Morgan says India is vulnerable and not is not as good as China. All scrips are overvalued !

We had warned in this blog about Jupiter's Transit of the 6th House for India !

Thursday, January 17, 2008

Online Trading Firm: The Best Stock Market Investing Guide

- By: Anthony Galz, 2008-01-17

Beginners and non-professionals on the stock market industry can now invest and try their hand at stock market investment themselves. Thanks to online information offering the best advices and guides on stock investment, stock market is now made more available to more people.

The proper way to start is to find a credible stock market investing guide. For this, you'll need to sign up with an online trading firm. There are many online firms that offer free account registration. What matters is that you won't be left on your own, once you've started. Here are some tips to picking a reliable stock trading site as your stock market investing guide:

Trustworthy online trading firm should not only instruct you the tools of the trade, but it should also be your online stock market investing guide.

Most online trading firm would ask you to sign up with them as it is profitable on their part. But there are many fraudulent online firms that would not hesitate at taking advantage of your investments. One of the most common schemes these fraudulent sites would try is the "Pump and Dump" scheme. They'll hype and inflate prices of stocks and then dump these on investors who have no idea what they're getting into. So be careful when choosing which online trading firm you would want as your stock market investing guide.

You can find many online firms that handles individual stock traders who wants a hands-on involvement with their investments. A great stock market investing guide is one who can show you not only the tools of the trade, but how you can keep track of your stock investments, as well.

A good online stock market guide should be able to provide non-professional beginners with online trading support services.

Be cautious about online trading firms that offer to handle your investments for you. That's not a sign of a reliable stock market investing guide. Always ask to take control of your investments. Look for a trading site that offers services like direct investment options, listings of independent stock news sources, as well as courses on online stock trading. These are signs that a stock trading firm not only wants you onboard, it will take care of you and your investment by acting as a trustworthy stock market investing guide.

Information is a key element in stock market investing. When choosing a online stock trading site, make sure that the one you is updated and well-informed, particularly in the markets you're interested in. There are sites that serve that offer vital stock quote data, charts, news and information. There are also other sites that cater specifically to the online trading community in terms of offering tools and applications that help beginners with stock analysis, streaming stock quote data, and other useful information.

Don't rely on your stock market investing guide alone. Choosing a reliable online trading firm as your stock market investing guide is half of the work done. The rest is up to you. Once you get the hang of online stock trading investments you'll be more confident in investing bigger stock picks.

Discover the basics of stock trading before you invest. Get free stock market investing guide straight from the pros.

Article Source : http://www.articlewisdom.com

Interested In Commodities Investing? Try These Tips

- By: Noel Swanson, 2008-01-17

If you've heard of commodities trading, you might be interested in knowing more about it. Commodities are products of commerce that are traded in commodity markets. These are materials such as financial investments, foreign currencies, agricultural products, metals and petroleum. When commodities markets began, they were used as agricultural trade platforms for local communities, utilized for agricultural products. Today, commodity markets have gone global, with country barriers broken down via technological advancements. Globalization and industrialization have meant that these goods have also been industrialized and the world has become its own trading center.

There are certain rules that one has to follow when you are trading in commodities. First, the trading is to be done only for standard products. Second, commodities transactions take place through the use of "futures contracts." This is where commodities are actually bought or sold on the future date. Even though the transaction technically takes place at a later date, the commodity's selling price is the price that is agreed upon when the contract is made.

"Futures contracts" aren't the only type of commodities contracts. Spot contracts are put in place so that commodities get transferred when a contract is made instead of at a later date. You use a spot contract to exercise future contract after a period of time has gone by. Some types of commodities investing include commodity food market, commodity fund investing, and commodity petroleum.

At its start, investing in commodities was received only by a few sectors and were received to the trade of commodities meant for regular and everyday use. However today anyone interested in trading in commodities can do so.

There are numerous benefits in investing in commodities like its reduced risks. With these reduced risks, the gains you gain in commodity investing helps in counterbalancing other losses you may have in financial instruments of your portfolio. The reason commodities offer reduced risks is that it's investing deals with diverse items. In addition to this, contracts entered for future dates ensure that you exercise care to ensure that risk chances are reduced or nullified.

You can monitor a commodity's performance on the market quite easily. Another advantage to commodities trading is that in general, it performs well when other areas, such as the stock market, don't; similarly, it doesn't generally perform well when other areas, such as the stock market, do perform well. Therefore, it's relatively easy to predict what commodity prices will be and foresee the market's fluctuations. Even with this general rule of thumb, though, you should be forewarned that you should never actually correlate the fluctuations in the commodity market to opposite performance in the stock market, or vice versa.

If you're interested in learning more about trading commodities, there are commodity-trading advisors who can help you. These are individuals or firms who can help you decide what your position should be in the commodity market, either long or short. They can also tell you when it's best to liquidate your position. In addition, they can help you see if your goals will match with their particular trading philosophies and strategies.

To choose the best commodity-trading advisor for you, determine what your own goals and objectives are and then choose an adviser that matches you most closely. You can communicate with your advisor in a variety of ways, including phone, pager, fax, or e-mails. If you're not comfortable with trading in commodities yourself, there are several investment funds that utilize commodities trading in their portfolios.

If you want to learn more on commodity trading then please visit this Investment Fund

Article Source : www.articlewisdom.com

Difficulty of Funding for India’s Entrepreneurs

- By: Vivek B, 2008-01-17

Today India appears to be poised for phenomenal growth and this could be well observed at the start of the new millennium. India is becoming a priority destination for different foreign investors and venture capitalists. Today’s knowledge-based economy of India is considered as a fertile ground for the upcoming entrepreneurs. As a result, the Indian businesses are now adapting the global competitive environment. But previously, this was not the case; most of the early entrepreneurs had to face hindrances in the path of their success due to various reasons such as inadequate opportunities, scarcity of capital, lack of technology and many other factors.

India is a conservative nation and most of the people prefer regular monthly pay rather than embarking on any business venture on their own. In India, people do have innovative ideas but translating these ideas into business enterprises involves many risks which they find difficult to tackle. This has led to an overall cautious mindset amongst the upcoming entrepreneurs. Even if an individual makes up his mind to start up an enterprise, he fails to get proper motivation, financial backup as well as proper sources for funding. The most common difficulties faced by Indian entrepreneurs are non-availability of good credit schemes and complexities in acquiring long or short-term loans. Also the Indian banks show lack of interest in entrepreneurial projects and put hindrances in processing the funding request applications. These constraints make an entrepreneur feel handicapped in initiating any kind of business venture.

The reasons behind the difficulties of funding comprise of the communication gap between venture capitalists or finance agencies and entrepreneurs. Absence of good credit schemes as well as improper presentation skills also contribute to the difficulties of funding faced by Indian entrepreneurs. Many banks also fail to offer enduring loans for start up units. Most of the time, investors and finance companies do not thoroughly understand the entrepreneurs’ newly introduced concepts. It would help if the funding agencies and venture capitalists kept themselves abreast with newly developing technologies and their possible profitable uses.

However, the difficulties of funding can be solved by different entrepreneurship practices. The important aspect for entrepreneurship is the attitude to make the entrepreneur-investor partnership based on mutual trust. In this, one partner possesses the innovative idea and skills necessary for implementing an enterprise, whereas the other partner has capital required for execution. This kind of partnership can contribute to paramount success of an enterprise. The finance companies, funding agencies as well as banks should develop certain processes to asses the feasibility of any new business venture and based on this they should facilitate loans for good proposals. These investors, funding agencies and banks should also try and introduce credit schemes that are favorable for entrepreneurs and add to the economic development of the country.

PITCHINDIA.com, is an online business introductory service which connects global angel investors and VCs to entrepreneurs in India. Looking to invest in India? Visit: www.pitchindia.com and FORUM_PITCHINDIA You can reach the author at vivek@pitchindia.com

Wednesday, January 16, 2008

Asian Markets hit hard !

Fears of a recession in the US makes Asian indices come down. Nikki is down, so is Kospi and Bombay sneezes !

Well, the Sensex is well below the 20,000 levels. Now it is at 19868.

Many experts feel that Indian market will not be affected and that cash will come into India, which will make the Sensex and the Nifty rise.

Now Jupiter in the adverse 6th has changed the climate.

Reliance's Power has rewritten history, with 1.25 lakh crore worth applications on the first day itself. Let us hope that the Subprime crisis and the concomitant recession in the US will not affect the Indian market, which the experts say is well insulated.

Jupiter in the 6th can create an uncertain atmosphere. Small investors are now afraid to invest in the secondary market, as they fear their fingers will be burned.

Saturday, January 05, 2008

Stock Market - Basic Principles - Part 1 Of 4

Zigfred Diaz

A lot of people have asked me on whether they should invest in the Philippine stock market. Most of those who asked also wanted to know how to start doing it. I do not know if they are really serious about investing or if they are merely curious about it since it has been given emphasis lately considering its very positive performance.

The Philippine stock market or the stock market in general is not a child's play ground. If you are a true investor, you must have expectations as to how much you are going to earn for a certain type of investment. This is measured in terms of how much your money will grow at a certain period of time. (The most common measure being interest per annum) Since the Philippine Stock market is at its peak for months now, people think that they should join the party even they do not understand how it works. They are even naive with the basic principles involve. This is not to say that you should be an economist before you start investing.

The point I am making is that you should understand the basic principles first before you will be successful in the stock market. It is true that fortunes are made on the Stock market, however there are also stories of people loosing a large amount of their money. Other who just dive into the stock market without knowing the basic principles of investment quit after some time, telling themselves that the stock market does make any money for anybody.

Let us not begin first by discussing the "how tos" in investing in the Philippine stock market. Let us first understand the basic principles of investment so that we might enjoy trading and be successful in the stock market. There are ten principles involved. We will talk about the first principle here. Other principles will follow in the next articles. Visit my blog if you want to see the whole article.

1.) An alternative vehicle of investment - The first principle is that you must realize that the stock market is just another alternative vehicle of investment. There are other investment vehicles in which you could invest in. Each vehicle of investment is unique and one is not more superior than others. Each of them has their own advantages and disadvantages. This will not be discussed in depth here.

The stock market belongs to a category called "Capital Markets." In the Capital Market there are several vehicles wherein you could place your money in order for it to grow. You could place it in bonds, pension funds, insurance, real estate, different types of savings and time deposit accounts and of course the stock market. Why is it important to know this? Well, you should know the different types of investment vehicles under the Capital markets in order for you to determine whether or not you should invest in the Stock Market as there are other vehicles of investment.

Bear in mind that each vehicle of investment has their own advantages and drawbacks. The secret here is not to place all of your eggs in one basket. Even if most of my investments are in the Capital Markets, I diversified by placing investments in the stock market, bonds through mutual funds, pension, deposits and insurances.

Article Directory: http://www.articlewisdom.com/

With his diverse educational background and job experiences, Zigfred Diaz blogs on several topics including Financial managment and investing in the stock market

India, China May Outshine US by 2020’

‘India, China May Outshine US by 2020’

Chidanand Rajghatta, Times of India, Jan. 14

WASHINGTON: The rise of China and India as global players is heralding an Asian Century in place of a receding American Century, a US intelligence report said on Thursday.

In a far reaching projection, the CIA-commissioned report compared the rise of the two Asian giants to the advent of a united Germany in the 19th century and a powerful United States in the 20th century, and said the event will transform the world’s geopolitical landscape, with impacts potentially as dramatic as those in the previous two centuries.

“In the same way that commentators refer to the 1900s as the ‘American Century,’ the 21st century may be seen as the time when Asia, led by China and India, comes into its own,” the report titled ‘Mapping the Global Future,’ observed. “A combination of sustained high economic growth, expanding military capabilities, and large populations will be at the root of the expected rapid rise in economic and political power for both countries.”

The report is the third in a series of five-yearly forecasts of global trends published by the National Intelligence Council, a group of senior intelligence analysts who report to the CIA director. The earlier reports were for 2010 and 2015. The forecasts for 2020 were based on consultations with more than 1,000 non-government experts at 30 conferences on five continents over the past year.

Expectedly, the 2005 report for the 2020 projection reflected the post 9/11 changes, but it also contained a degree of certitude not seen in the two previous studies, including a more upbeat assessment for India. “Barring an abrupt reversal of the process of globalization or any major upheavals in these countries, the rise of these new powers (China and India) is a virtual certainty,” it predicted.

The report said while most forecasts indicate that by 2020 China’s gross national product (GNP) will exceed that of individual Western economic powers except US India’s GNP will have overtaken or be on the threshold of overtaking European economies.

But the rise of India also will present strategic complications for the region, the report suggested. Like China, India will be an economic magnet for the region, and its rise will have an impact not only in Asia but also to the north-Central Asia, Iran, and other countries of the Middle East.

As India’s economy grows, governments in Southeast Asia—Malaysia, Singapore, Thailand, and other countries—may move closer to India to help build a potential geopolitical counterweight to China, it said. At the same time, India will seek to strengthen its ties with countries in the region without excluding China.

Although the 114-page report is replete with references to the rise of China and India, it contended that despite daunting challenges “the United States will retain enormous advantages, playing a pivotal role across the broad range of issues—economic, technological, political and military—that no other state will match by 2020.” But in several places in the report, the analysts conceded that the western world will see significant decline.

Dubbing China, India, and perhaps others such as Brazil and Indonesia, as ‘arriviste’ powers, the report said they “have the potential to render obsolete the old categories of East and West, North and South, aligned and nonaligned, developed and developing.”

“Traditional geographic groupings will increasingly lose salience in international relations. A state-bound world and a world of mega-cities, linked by flows of telecommunications, trade and finance, will co-exist,” it said.

Article Source : http://timesofindia.indiatimes.com/articleshow/msid-990832,curpg-2.cms

Friday, January 04, 2008

Sensex zooms by 341 points to 20646

ICICI Bank and L& T surged and DLF, ONGC and RIL held firm.

Both Nifty and Sensex recorded all time highs ! L & T surged to 4240, ONGC to 1349, TISCO to 934, ICICI Bank 1282, SBI 2409 & HDFC to 1700. RIL surged to 2993

On the other hand, IT majors were subdued with Infy at 1683, TCS at 1006, Satyam to 423 and Wipro at 497.

We have said earlier that the cash flow to India will continue and there is no big threat to the stock market. But there can be secondary reactions.

According to Dow Jones Theory, the Stock Market is like an ocean. The primary trend is the Tide, the secondary trend is the wave and the tertiary trend is the ripple. Daily fluctuations are tertiary waves. Now the primary trend is bullish and we say the Tide is a Bull Tide. Secondary reactions are busts happening in a Bull Market. Last time the market slipped by almost 2000 points and this was a secondary reaction. After the secondary reaction, the bull market moves ahead, overtaking its previous highs !