I think there is need for some explanation about this blog and its intentions. Let me start with what it is NOT. It is NOT a pure astrology blog, financial or otherwise. It is a blog of Astro Technicals. This means we use the axioms, principles and derivations of Astrology, in tandem with refined Technical Analysis techniques, so that we get an idea as to what we expect the markets will do next. We do not have any bias or hang ups about any particular type of Astrology here. We will examine all techniques which have the potential of giving us an edge. Also there is no religiosity involved with Astrology here, because we consider the science and its applications here, as a pure scientific tool and nothing else.
Astrology techniques are explained in detail so that other people with similar skill sets and interests could apply them and point out errors if any. Sometimes more than one kind of technique would be examined. The purpose of course is not to confuse, but to obtain more clarity as to what works and what does not. Ultimately, we seek to improve our shared knowledge so that all those who visit this blog are benefited.
We use Nifty mostly here because that is what I trade in most often. And truly there is no desire to look at too many markets because you can make all the money you want in just this one index, provided you operate systematically and professionally, without getting emotionally attached. Having said that, in future we may examine other markets as well.
We begin this week`s analysis by having a summarized look at the Technicals.
On larger time frame, we are proceeding upwards in Diametric D. This had started from December 20, 2011, at 4531.This D is made up of 3 waves. A, B and C.
A ended at 5629 on February 22.
B ended at 4770 on June 04.
Since June 04, we are in C of the larger Diametric Wave D.
Now, C is an impulse wave with 5 legs. (1, 2, 3, 4 and 5).
Leg 1 was completed on July 11 at 5348.
Leg 2 was completed on September 05, at 5215.70
Since September 05, we are in leg 3 of wave C of the larger Diametric D.
Now, leg 3 is an impulse by itself! (This means it has 5 minor legs 1,2,3,4 and 5)
These 5 legs have been marked in the chart below. On September 20, we have completed 4 minor legs and we are currently in the fifth minor leg of Leg 3 of wave C of larger Diametric D. Minor leg 5 may terminate at 5739 or 5792 or any point in-between. The values 5739 and 5792 are likely Fibonacci ratios.Please keep in mind that the value of Fib ratios are limited when the market is impulsing. The important understanding is minor wave 5 has not much distance to go.( We will see the astrological correlation a little later.)
Now what is being said hereafter are probabilities (not predictions for God`s sake!).At every point price has to confirm our expectations or else we simply modify our expectations. This also means that for both wave expectations and astrological expectations, please always refer to the latest blog posting. Only in the latest post will we be able to modify our thought output based on unfolding market actions.
Wave 4 of C may come down to 5475 or 5500 range. Since Wave 2 was a complex formation, wave 4 may be expected to be simpler. But this is a relative phenomenon at best. Thereafter we may expect to see Wave 5 of C, the top of which ought to be the culmination point of Diametric D. The correction from there which is expected to unfold as Diametric Wave E could be quite lethal. The entire diametric sequence which began from January 08, 2008 is a corrective pattern. It may end with the waves F and G, after E. After that we may expect a true bull market of the century to unfold.As short term traders who wish to make money steadily, we need not think so far out, right now. We take it week by week as it unfolds, protecting our capital and increasing our profits step by step. The charts below are self-explanatory:
Let us look at the astro correlations or lack of it:
On September 24, Moon is in Venus star. It moves through the subs of Mercury, Ketu and then moves into Sun star by close. After some hesitation in the morning till about 11 am, Nifty should move again and close positively.
On September 25, Moon is in Sun till about 12 noon. Then Moon enters Moon star.Moon is also in Capricorn.So it is probable that the market may decline from here on.Conservative traders may switch off longs, before 12 noon.Depending on the force of decline, if it ever happens, only can we decide to go short.
On September 26, Moon continues in Moon star till 11.50 am. Thereafter Moon is in Mars.Moreover Moon is close to trigger the trine between Jupiter and Mercury.So Nifty may try to go up.But mind you, at 20.56.48 hrs on September 26, Moon is in the mid point of Uranus and Pluto and opposite to Venus. So this day may be used to get out of longs created a while ago. Negativity is increasing fast.
On September 27,Moon is in Mars till 12 noon. Mars is in Jupiter star, which is negative.Rahu is in Saturn star, which is positive. I do not expect any great fire works either way here.In other words Nifty could stall here without any positive conviction or most possibly, go down. Tonight, Moon would be crossing the Celestial Equator. And Mercury and Uranus declinations are becoming extreme,To top it all, Mars and Venus are in a negative square formation.
On September 28, 2012, Moon is in Rahu till 12.33 pm. Thereafter Moon is in Jupiter. Moon is square Jupiter. Jupiter is in Moon.And the lunation effects will be in full force.So a pretty consistent decline is what is expected.In fact we may close the week negatively.
Putting both studies together, we feel, that we should be extremely cautious with longs till September 25 12 noon.We may start taking profits and by September 27, afternoon, looking at the market situation, if it exhibits weakness we take a cautious sell position.On September 28, if the markets moves down, convincingly, we increase our short position, with stop losses, of course.Wave wise we should then be in Wave 4 of C. The next reversal zone seems to be sometime around October 04, 2012, when Mars-Rahu conjunction is trigggered by the Moon and is completed.In other words plan to carry shorts till October 04, or till the markets say otherwise.
Happy trading with stop losses, of course!