Financial Astrology: the essentials of predicting the stock market

Can astrology really predict the movement of the markets? Skeptics would answer that the

only thing astrology can predict is a person's gullibility. While many believers of

astrology do tend towards the naive "New Age" stereotype, an impartial review of the

historical correlation between stock prices and planetary motion clearly suggests that

prediction is possible, if only under certain conditions. One of the difficulties in

assessing the relationship between prices and the planets is the large number of variables

involved. Most astrologers work with at least 9 planets, 7 aspects i.e. the angular

separation between two planets, 12 houses and 12 constellations, to say nothing of

asteroids, fixed stars, nakshatras or whatever other supplementary parameters one chooses

to mention. Taken together, this produces a huge number of possible permutations that can

be correlated with market trends.

In the absence of strong transit contacts to the particular first trade chart of a stock

exchange or company, it is very hard indeed to discern where the market will go. In those

conditions, astrology may fare no better than chance. But where close angular contacts are

made between current planetary positions and those in the first trade chart, prices will

follow set patterns as described by the established symbolism of the planet and angle

involved. We will examine how this works in more detail below.

There are several basic strategies for using astrology with stock market investing. The

first, and most important is obtain the first trade data of a stock, ETF, currency, etc.

and cast a horoscope for that time and place. Over time, this chart can then be analyzed

with respect to transits, progressions, and dashas in order to ascertain the likely price

movements of the stock.

Essentially, the basic rule of financial astrology is: Favourable planetary alignments

through transit contacts with benefics during the dasha periods of well-placed planets will

tend to yield price increases, while bad aspects from bad planets -- a square (90 degree)

aspect from Saturn for example -- will usually push the share price down. As already noted,

situations where unambiguously good or bad planetary patterns predominate occur most of the

time. This is the main reason why many astrologers run into trouble. They extrapolate too

far on the basis of thin or ambiguous data. A more prudent strategy is to refrain from

making predictions at times of conflicting data and only take firm positions when the

variables are more clearly defined.

For example, a situation may arise in which there are apparently offsetting influences of

planetary transits from benefic Jupiter and malefic Saturn to key natal planets. In those

instances, an astrological analysis is perhaps better off deferring judgement until other

planetary influences come in to tip the balance. In this way, the best approach is for a

selective application of astrological insights at critical turning points in the market. So

while it may not be clear just how a stock will move over a period of days, weeks or even

months, the astrologer will be able to identify critical time windows that have a much

greater likelihood of ups or downs. Knowing these times of probable market outcomes can

come in very handy to the trader, even if they only occur sporadically.

The basic astrological elements for forecasting the stock market are no different from

standard astrology. The constant motion of the planets through the houses and zodiac signs

supply the framework for an astrological model. The table below lists the relevant

"variables" for our consideration.

As we can see, the majority of planets here are listed as "neutral". That doesn't mean,

however, that they have no effect on the markets. It just means that all things being

equal, they do not have an intrinsic bias in regard to sentiment and prices. All planets,

even the more clearly positive or negative ones, can exhibit a variety of price effects

depending on the other planets and chart factors they are interacting with at any given

time. Although all planets and houses possess certain natural inclinations, how they will

eventually effect the market is more dependent on their temporary condition. For example, a

positive planet like Venus if transiting over a malefic planet like Ketu in a malefic house

like the 8th is more likely to coincide with a drop in the market. That's because the

natural 'bullishness' of Venus has been corrupted, so to speak, by its temporary negative

situation. Conversely, although Saturn is the planet most closely associated with pessimism

and bear markets, if it forms a favourable alignment with positive aspects (e.g. 120

degrees) involving benefic planets, it often marks an upswing in prices. This is why it is

crucial to take into account the whole chart rather than the motion of a single planet.

Boolean Analysis and the Financial Markets

Many astrologers like to characterize their method of reading a horoscope as "holistic", in

an effort to escape criticisms from mechanistically-oriented skeptics. I prefer to think of

chart analysis in terms of Boolean logic, where multiple factors must be present for a

particular situation to occur. For example, we cannot expect stocks to inevitably rise when

benefic Jupiter conjoins the natal Sun of the chart we are working with. Such a favourable

pattern may be thought of as a necessary, but not sufficient condition for price increases.

There must also be an absence of negative factors hitting the key chart points. These would

include few close aspects from malefic planets, no planets transiting malefic houses (6th,

8th, 12th) and so on. Given the large number of variables every chart contains, there will

be several significant operating planetary contacts and influences at any given time. These

must all be evaluated for their relative effects of prices according to the principles of

Boolean analysis. If we are trying to assess if the conditions are in place for a bull

market, for example, we could construct a table that more clearly reflects this logical

process.

If most or all of the favourable conditions are in place, then a bull market is more

probable. Where a more mixed situation obtains, the market will only deliver mixed results.

In addition to the above factors, I use a variety of techniques including current transit

patterns such as planetary ingresses, the phases of the Moon, and mundane aspects. All can

be used as signals to help discern the prevailing market direction. Since none of these are

reliable indicators on their own, I typically use up to 20 different measurements to

compile a sort of moving astrological index that reflects changing investor sentiment. In

addition, I make use of the first trade charts of key stocks, stock indices, and stock

exchanges.

The Horoscope of the New York Stock Exchange

Perhaps the most important of these is the horoscope of the New York Stock Exchange which

was founded May 17, 1792. There are several times out there for this chart, with different

astrologers making a case for each. After much testing, I find the 10.30 am chart to be the

most accurate. I have rectified to 10.34 am in order to make better use of the smaller

chart varga divisions in Jyotish. This is quite a powerful chart, although one needs to

stand outside of the Vedic tradition to fully appreciate it. Uranus, the planet of

unbounded energy and sudden change, rises within one degree of the ascendant while Venus,

the planet of money and luxury, culminates very near the Midheaven. Venus and Uranus

together spell "fast or accelerated money" better than just about any other planetary

combinations I can think of and therein perfectly describe the rapid movement of money on

the trading floor. However appropriate that symbolism, it is more important that the chart

adequately reflect major price movements over its long history. It does this well indeed

regardless if one uses Western or Vedic techniques, as I do. This ability to see the

dynamic of both bull and bear markets regardless of one's operating paradigm is a sign of

the robustness of this chart.

To see how this chart works in practice, let's look at how we might have made sense of the

planetary influences that were operating at the time of the October 1987 stock market

crash. The NYSE chart was running Jupiter-Mercury dasha. Although both of these planets are

natural benefics and therefore biased towards price rises, a planet's temporary condition

in the chart at hand is a more important determinant of its promise. Jupiter's dasha lasts

16 years to it is only a background influence. More significant is Mercury. Although fairly

well-placed in the 11th house of gains in Taurus, it rules the 12th of loss and the neutral

3rd and is also closely combusted. So far, this is a fairly mediocre Mercury. However, what

tips the scales towards the negative is that it forms a tight square with Pluto. Hard

aspects with any outer planet are never good, and this creates a natal tendency in Mercury

that will tend to manifest in lower prices during its dasha periods, as we will see in a

separate discussion below.

Transitwise, Jupiter opposes its natal position and is conjunct the Moon. This will tend to

be a positive influence. Other potentially favourable longer term influences include Uranus

which trines the Moon. However, there are a greater number of negative transits here.

Neptune precisely squares the nodes, while Saturn is applying to square Mars in the 2nd

house of wealth. Perhaps more bearish is that Ketu conjoins natal Rahu and thereby aspects

2nd lord Sun, which is natally conjoined with Mercury. The most bearish transit influence

is Pluto (powerful destruction) which sits on the IC and opposes Venus (money). This is a

very clearly negative aspect. Moreover, tertiary progressed Mars was tightly squaring the

very malefic conjunction of Ketu and Neptune, while P3 Mercury (trading) conjoined P3

Saturn (loss).
On the basis of just these small handful of factors, it was clear that the Fall of 1987

would be a bearish time for the market, with the high probability of a significant sell-

off.

The Vulnerability of Mercury Periods

One of the interesting features of the NYSE horoscope is the afflicted nature of Mercury.

This is ironic in a way since Mercury is the planet of trading. Nonetheless, one compelling

way to judge the effects of this troubled Mercury is to assess its effect on market

performance over the years. Since the antardasha (aka subperiod, or bhukti) period is

shorter, we can find several instances over the past 100 years or so and thereby correlate

stock prices during the time it was subperiod lord.

*At its inception on May 26, 1896, the Dow was computed differently and was comprised of

only 12 companies. This makes its early data less reliable for historical comparisons.

We can see that Mercury dashas do not generally correlate with higher prices and fall well

below the +6%/year historical norm for stocks. The best performing period occurred during

Jupiter-Mercury but even there, Mercury revealed its bearish tendencies since it marked the

biggest crash in history. The overall positive price effect from 1985-1988 was largely the

result of Jupiter's overriding influence. It is perhaps no coincidence that the greatest

bull market in history occurred during the Jupiter dasha from 1981 to 1997. The only other

strongly positive period occurred during the Sun dasha. Here we can see the combined effect

of two 11th house planets (gains!) fending off whatever bearish influences they

encountered. Looking ahead to Mercury's next major dasha period which begins in 2016, it's

hard to be optimistic about the stock market's performance.