Monday, March 30, 2009

March 30 Weekly Update - Stock Market Forecast

March 30 Weekly Update - Stock Market Forecast

Fengshui: Market has potential strength except for Friday. Expect volatility.

Astrology: Markets tend to reverse by middle of Venus retrograde. What rallied so extremely will fall just as sharply because of Pluto. Expect volatility. If Dow cannot break 7930.61 top, then can see 7382 or lower.

Technical Analysis: US indices – Likely topped or will topout soon, followed by decline, need to see performance of each day to confirm.

A heavy week of potential market moving economic reports – consumer confidence, ADP employment, nonfarm payrolls and unemployment rate, etc.

Be careful! This week is critical. I would likely be able to confirm by end of this week what we can expect next. There is a critical turn window next week and planetary movements which could mark market turns. Hmmm, those planetary movements might already be exerting their influence this week!

More in April 2009 Stock Market Forecast coming soon!

Friday, March 27, 2009

Astrology Forecast End of Rally!

One Astro Expert forecasted this Bear Market Rally will end on March 27, 2009. He accurately forecasted the start of this Rally and his forecast was posted early this year. I only found this article recently.

Then March 26, 2009 was the Fibonacci Turn Date provided by a TA Expert.

Then yesterday or today is New Moon. Looks like it might mark a Market Top.

Wah, one more tip, today STI hit my BMI Top (remember its twin indicator), not a good sign in a Bear Market Rally. It might indicate this rally is ending soon! Unless other powerful forces are at work. Like what? Like the power of Venus Retrograde?

Other challenging timelines to note:
  1. March 31 GM deadline
  2. March 31 Hedge Fund Redemptions
  3. April 2 G20 Meeting
  4. April 15 US Tax short fall
  5. April Earnings Season

So be careful! More in April 2009 Stock Market Forecast coming soon!

Thursday, March 26, 2009

3 Phases of Bear Market (2007 to 2012?)

My most popular article is Stock Market Forecast for Next 8 Years (2008 to 2016).

Have you read it?

According to The Joseph Cycle, the next 7 Years will be a Bear Market, starting from October 2007.

When will this Bear Market likely to end?

The most optimistic forecast based on Elliott Wave Analysis, this Bear Market might last 4 to 6 years from 2007. This Supercycle or Grand Supercycle Degree Bear Market has 3 phases (legs):

  1. The first leg ( A ) down had likely ended on March 9, 2009.

  2. The second leg ( B ) is likely to be in progress, a likely 50% retracement of the decline from October 2007. Wow, you estimate how much is that lor!

  3. The third and final leg ( C ) down will be next. Dow will likely end with 90% of its value gone (from October 2007 top)! Wah, you estimate lor!

See diagram attached (click to enlarge).

Oops! I wonder what will happen if the major correction forecasted in April 2009 makes a new low!

So, do you still want to pick the bottom? Do you still want to buy and hold?

More in Part 2 to this Article!

Read STI/DOW Elliott Wave Count - where are we now for updated diagram

Read 3 Phases of Bear Market (2007 - 2017) - update

Key To Trading Success: Ignore Nature's Laws?

The following is excerpted from Robert Prechter’s Independent Investor eBook. The 75-page eBook is a compilation of some of the New York Times bestselling author’s writings that challenge conventional financial market assumptions. Visit Elliott Wave International to download the eBook, free.

By Robert Prechter, CMT

…The natural tendency of people to apply physics to finance explains why successful traders are so rare and why they are so immensely rewarded for their skills. There is no such thing as a “born trader” because people are born — or learn very early — to respect the laws of physics. This respect is so strong that they apply these laws even in inappropriate situations. Most people who follow the market closely act as if the market is a physical force aimed at their heads. Buying during rallies and selling during declines is akin to ducking when a rock is hurtling toward you.

Successful traders learn to do something that almost no one else can do. They sell near the emotional extreme of a rally and buy near the emotional extreme of a decline. The mental discipline that a successful trader shows in buying low and selling high is akin to that of a person who sees a rock thrown at his head and refuses to duck. He thinks, I’m betting that the rock will veer away at the last moment, of its own accord. In this endeavor, he must ignore the laws of physics to which his mind naturally defaults. In the physical world, this would be insane behavior; in finance, it makes him rich.

Unfortunately, sometimes the rock does not veer. It hits the trader in the head. All he has to rely upon is percentages. He knows from long study that most of the time, the rock coming at him will veer away, but he also must take the consequences when it doesn’t. The emotional fortitude required to stand in the way of a hurtling stone when you might get hurt is immense, and few people possess it. It is, of course, a great paradox that people who can’t perform this feat get hurt over and over in financial markets and endure a serious stoning, sometimes to death. Many great truths about life are paradoxical, and so is this one.


For more information, download Robert Prechter’s free Independent Investor eBook. The 75-page resource teaches investors to think independently by challenging conventional financial market assumptions.


Robert Prechter, Certified Market Technician, is the founder and CEO of Elliott Wave International author of Wall Street best-sellers Conquer the Crash and Elliott Wave Principle and editor of The Elliott Wave Theorist monthly market letter since 1979.

Wednesday, March 25, 2009

April 2009 Stock Market Outlook

What does the Stock Trader's Almanac say for April 2009. Summary of key points:

  1. The Best Six Months for the Dow and S&P end in April.
  2. This is the second year in a row it had been red. Oops, one more month to go!
  3. 2008 was not good after a bad Best Six Months. Beware 2009!
  4. Historically, April is best month for Dow. Oops, will it be in 2009?
  5. The first four days are bullish. Oops, will it be in 2009?
  6. The day after Easter is the worst post-holiday.
  7. Market is prone to some weakness after the April 15 Tax Deadline.

So what is the Stock Market Outlook for April 2009 based on Fengshui?

Oops, thought you know already, I've been writing about it in a few of my blog articles.

Ok, lookout for my crystal ball April 2009 Forecast coming soon!

Monday, March 23, 2009

March 23 Weekly Update - Stock Market Forecast

March 23 Weekly Update - Stock Market Forecast

Fengshui: Markets unlikely to do well. Some strength Monday but signs of volatility late week.

Astrology: Will the rally continue or will it reverse down?

Technical Analysis: US indices – Will this be a corrective decline? Can Dow 7250 hold?

New moon falls on March 26, 2009. Will it be a market bottom or a market top?

Monday, March 16, 2009

March 16 Weekly Update - Stock Market Forecast

March 16 Weekly Update - Stock Market Forecast

Fengshui: Signs of volatility, with profit taking Monday/Tuesday, potential strength Wed and Friday.

Astrology: Volatile with sharp price movements/reversals.

Technical Analysis: US indices – Signs of topping out, likely to decline.

Note: Goldman Sachs earnings on Tuesday. March FOMC meeting Tuesday and Wednesday, with announcement on interest rates and assessment of economy/inflation on Wednesday. Uncle Ben will be speaking again on Friday. Plus this quarter’s quadruple-witching expirations on Friday usually create considerable volatility.

Wah, options expirations again, where “Big players bully Small players”. If there are more calls than puts, guess what will happen when Big players make call options expire worthless!

So can the rally continue? Are the bears still hungry?

Tip: Fengshui forecast for next week is weak. Fibonacci turn date on Mar 26 likely to be a bottom. Potential major market crash in April 2009.

Be careful hor!

Wednesday, March 11, 2009

Making of A Bear Trap?

A Bear Trap?

Many technical analysts had been calling for a powerful reversal or bear market rally for weeks. But where is the bear market rally? Is this the making of a Bear Trap (Bulls creating a trap, trapping the bears in the bear market rally, hahaha!)?

Why the delay of a Bear Market Rally? With Venus retrograde, technical studies have a tendency to be unreliable, so say the Financial Astrology Expert. I think this also affected Fengshui forecast lor!

This FA expert's view is that with Venus retrograde, typically he will look for a long-term cycle high or low to form within 12 days of the retrograde event, and then for many markets to embark on counter-trend moves into the direct period, +/- 10 trading days.

However, there might be other planetary movements occurring during the retrograde period. So the counter-trend moves might be truncated, causing volatility during the period.

Aha, looks like the counter-trend moves (Bear Market Rally) had started (Dow is up 4% now as I'm writing). Oops, not yet, we need to confirm the decline is over! A break of 7100 confirms! Hey, Fengshui forecast for this week had been spot on so far. The squeeze is on!

Lookout for these potential turn dates, signs that the counter-trend moves might have ended: March 13, March 19, March 26, March 23. Refer to March 2009 Fengshui Forecast for more indications of potential market weakness.

Watch these Dow Levels! Only if Dow can break 7100 then it can reach those levels, given by one Financial Astrology Expert:

6972, 7055, 7139
7690, 7752, 7834

Monday, March 9, 2009

March 9 Weekly Update - Stock Market Forecast

March 9 Weekly Update - Stock Market Forecast

Fengshui: Monday likely to be volatile, gaining strength rest of week.

Astrology: Confusing signals with multiple planetary movements. Will markets be up or down?

Technical Analysis: US indices – Likely to rise Monday.

With conflicting forecasts among the 3 groups of Masters, what would be the probable market direction this week?

Noticed US markets rebounded from lows last Friday March 6, 2009 when Venus turned retrograde during US time. Does it mean the end of this sharp stock sell off?

We need to see confirmation, follow through, before we can confirm the decline is over.

I've been doing more detailed research on astro trading cycles after experiencing the impact of Venus retrograde on stock markets last week. It appears that during the Venus retrograde period from March 6 to April 17 2009, stock markets are likely to encounter much “turbulence”. Wait till I finished my research, wait till we confirm the market direction this week, then I will share more. It's all about probabilities.

And I'll be reviewing my Stock Market Exit Strategies.

In any case, I'll be following March 2009 Fengshui Stock Market Forecast!

Remember, stock markets likely to crash in April 2009!

Wednesday, March 4, 2009

Venus Retrograde = Panic Stock Selloff?

Watch the Sky for Trends!

Financial Astrology Experts say certain planetary movements can affect stock markets.

Venus Retrograde from March 6 to April 17 could have caused the panic stock market sell off. That's why Technical Analysis failed to identify the market bottom and reversal timings correctly. That's why Fengshui Forecast also failed.

Will markets continue to decline until March 6, the start of Venus Retrograde? Will markets reverse on or after March 6 2009?

Monday, March 2, 2009

March 2009 Stock Market Forecast

March 5 to April 4, 2009

This is the Yin Fire Rabbit month. It brings strength to equity markets. However, there are signs of instability in the second half of month.

Favourable industries/sectors: Fire, Earth and Water.

Week of March 2 to 6, 2009 - Stock Market Forecast

Markets likely to have strength March 2, 3 and 6.

My research indicates:

  1. I can see strong fire elements on March 2 and 3 and strong wood/fire elements next week.
  2. According to one financial astrology expert, Venus retro periods often mark market turns. Venus retrograde from March 6 to April 17, 2009. Direction: unclear.
  3. According to 2 Elliott Wave Analysis experts, markets likely to bottom out and stage a sharp wave 4 reversal, before the final wave 5 down. Turn window between March 10 and March 18.
  4. Weekly S&P 500 forms a double bottom pattern. Should a pivot low occur, a strong rally could follow. Can you see a similar pattern in STI?
  5. Dow is under pressure, likely break 7000. Should the market find a pivot low, a large rally could follow.

So, could Panic cause a rally?

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