The use of financial astrology for both market timing and stock selection is an open secret among many successful investors. Fund managers and traders worldwide use it for both first and second opinions on global stock, bond and commodity markets. The reason is simple: forecasts made by experienced financial astrologers are often more accurate and precise than other economic modeling systems.

It’s Not What You Know, But When You Know It

A horoscope is a map of time and place.

Just as an astrologer can look to an individual’s horoscope to forecast his or her future, so too can a financial astrologer look to the heavens for stock market guidance. Markets have horoscopes, countries have horoscopes, stocks have horoscopes, investors have horoscopes, and financial advisors have horoscopes.

The stock market horoscope I study the most is the one of the New York Stock Exchange, (NYSE) born May 17, 1792 in New York City. This is currently the lead horoscope for all the world’s horoscopes. In my book, Investing by the Stars (Traders Press, 2000) I give examples of successful astrological forecasts using the NYSE chart.

Five Factors

There are 5 potentially knowable factors that influence markets:

  • Fundamentals Analysis
  • Technical Analysis
  • Market Timing
  • Market psychology and
  • Geopolitical events.

Each of these factors has an astrological component that can be analyzed by using the appropriate horoscopes. For example, to complement fundamental analysis we look at the incorporation horoscope. Astrology can also be a telescope or microscope on global stock markets. That is to say, it can be helpful in forecasting both long-term trends, or short, intraday stock and commodity moves.

It’s Really Psychology

Astrology, like behavioral finance, is the study of the psychology of markets. Astrology is defined as a “mathematical psychology based on astronomy.” Financial astrology, which includes market psychology and market timing, is utilized by an analyst as a third tool, in conjunction with fundamental and technical factors that influence market behavior.

It Can Be Charted

An astrological analyst studies market behavior primarily by correlating planetary cycles with historical equities, bonds, futures and options pricing. It is a stock market tool that measures time and price and its indicators can be charted in a similar manner to other technical tools such as money flows, momentum indicators, support and resistance. I personally believe it is the single best market-forecasting tool. But it is important to remember that it is not a stand-alone tool.

Combine Tools

For investing, I recommend fundamental analysis and astrology. For trading, I recommend technical analysis and astrology. However when positional trading, it is often safer to include a fundamental bias.

Short-Term Edge

For traders, it an obvious edge, while many professionals use astrology both as a first alert and as a confirmation screen. Not to override their own work, but to improve their performance by using astrological input. Where it agrees, they make a larger bet, where it disagrees; they can avoid or reduce it.

First Alert

What if you could make a trade before anyone else had the news? Imagine the benefits of seeing first the news that moves the price before anyone else. This theoretically would permit buying and selling ahead of time to increased profit.

Good Calls

My personal forecasting successes have ranged from the Tokyo Market crash two years in advance to selling the NASDAQ by 1 pm on October 17, 2012. How did I do this? By studying various horoscopes in order to more precisely time events that I projected to happen from either my fundamental and/or technical analysis of markets.

Investing with Astrology

I generally use a top down approach: looking first to upcoming planetary themes and then to the horoscopes of countries, stock markets, sectors and finally individual stocks or market instruments. Then I will seek confirmations from various alternative information sources whenever possible. Alternately, a stock that has been first researched fundamentally and/or technically from either external sources or internal research may or may not be confirmed by astrological signals.

The goal is to make one’s buy and sell decisions by being in harmony with the market trends, buying undervalued and/or stellar companies as well as selling overvalued and/or astrologically challenged companies.

Long-term positions are held until initial profit targets are reached, and/or as soon as the original positions are forecast to be no longer profitable or will result in increased losses if held further. Short-term positions are made after an appropriate timing view of the market for entry and/or pricing. Positions are held until appropriate profit targets are reached, or the favorable astrological factors are no longer operating, and/or critical pricing, i.e., support/resistance factors are breached.

More Money, Less Risk

My personal mantra is that using financial astrology as an investing and trading tool can allow one to make more money, with less risk. This is similar to using technical analysis in combination with fundamentals. The results are better than using either tool alone. Using astrology and fundamentals together in investing and astrology and technicals in trading demonstrably allows one to make more money with less risk.

In addition to whatever technical tools you regularly use, we recommend adding astrology to your toolbox.

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