Stock Market Astrology XII

The Nodal Cycle

The North Node of the Moon, or rather the Ascending Node of Luna, takes 18.6 years to make a circuit of the Zodiac. This is known as the sidereal period of the North Node. This 18 year business cycle is linked to economic cycles. The North Node in Taurus was responsible for the bear phase in the US, with the Dow falling from a high of 11300 to 9600 levels. Rise in the U S Stock Market was reported when the North Node transited Leo.

The Law of Cyclicality & Recurrence

There is a periodical recurrence of the rise and fall in stocks. It is clear that a natural law is at work, which governs stock movements. The manifestation of this Law of Peridiocity can be seen in the stocks which go on an uptrend & vice versa. For example, while SBI was advancing steadily, we found that IOC was steadily declining. The Law of Cyclicality was at work, sending a particular stock on the upward trend, while others were trending downward.

The Contrarian nature of the Stock Market

We find that the market moves against fundamentals ! When a Company announces good results, its stocks come down. Conversely when bad results are announced, vice versa happens. This contrarian nature of the Market has puzzled many. When a Company announces good results, the big players bear hammer the scrip to low levels. They themselves enter the scrip at low levels ! Conversely, they buy the scrips ( whose results are bad ) and increase the price of the scrip. At high levels they themselves offload the scrip !

Indian Economy to grow 8.5 %

The Investment Information and Credit Rating Agency (ICRA) said in its report that " With excellent monsoon and a likely new record agricultural output, fiscal 03-04 appears set to clock growth well in excess of 8.5%. Perhaps approaching 8.5%, the increase contributed by a sharp increase in agriculture GDP by as much as 4%."

Corporate Earnings growth to drive Equity Market

The corporate earnings, expressed in growing profits, instead of re-rating of markets, would drive the activity on bourses and auto stocks would attract the maximum investor's interest, according DSP-Merryll Lynch

Automobile was the most preferred sector for investment amond the fund managers while the fast moving consumer goods stocks ( FMCG) were the least preferred. IT was the second preferred sector.

Banking was the only other sector where the fund managers held a clear positive outlook and continued to be bullish on commodities such as cement and petrochemicals. Commercial vehicles companies were expected to post 69 % year-on-year growth in earnings. Despite the bull run in stocks seen till date, the market was still perceived as undervalued.

The Primary Market

You can apply for the new issues - like bank shares - in the primary market. When the primary trend is bullish, you can get easy profit. Other Bank issues also fared well. We suggest you should only apply when the primary trend is bullish. You may get allotment only after 1 month. So when you apply be sure that the market will be bullish when you get the allotment.

When get the allotment, sell immediately. Dont be greedy and hold out in the expectation of furthur gains. When you sell, your money is freed for recycling in other issues. That way, you can get good appreciation for your capital.

Horary Charts can be used for Trading

Yesterday when I went for trading, the checked the horary chart. Sagittarius was rising, with Moon and Gulika ( a satellite of Saturn) in the Ascendant, aspected powerfully by Jupiter. From 1000 to 1200 , it was Sagittarius which rose, from 12 to 2 Capricorn and from 2 to 03.30 PM Aquarius. As expected Sag was positive and the market opened with +30 points. At 1200 it began to recede ( Capricorn negative ) and the Sensex was showing minus. After 2 00 PM it went up ( Aquarius positive, with Jup in the 7th aspecting Aquarius ) .

Just shows how friendly a diagnostic tool Astrology can be when we deal with the volatile stock market !