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09 August 1999
This is an updated version of an article that appeared in early 1999. It appears here in its original form, but an update for the year 2000 appears at the end.
The question of which stocks to buy necessitates determining which industry groups to invest in. Stocks can benefit or suffer from a "guilt by association" simply due to the industry group that they are classified in. Being included in a group that is out of favor can tie a rock around the leg of a strong stock, holding it back. A weak stock can rise in a favored industry group simply because a rising tide lifts all boats.
A quantitative analyst once calculated that the odds of buying any stock that increases in price are three-to-one in the investors favor if one is buying in a bull market. In a bear market, the odds are  the investor by twenty-to-one. These odds were determined for the overall market, but we must keep in mind that there are about 90 industry groups in the US that move in their own trends. In 1994, for example, the S&P barely rose while the semiconductor group was up by 27 percent and the homebuilding group fell by 40 percent. Theoretically, a fund can outperform by buying stocks in the right groups year after year, except in bad bear markets. A planetary method that was introduced in the last article identifies parts of the zodiac that are sensitive for a given group of stocks.
First, we must differentiate the various terms and horoscopes used. The first-trade horoscope is not the IPO. The intial public offering usually takes place a day or two or three before the stock begins trading.This puts a supply of stock in the hands of large institutions to facilitate trading when the stock opens on the exchange. The most recent first trade is used. For example, Seagate used to trade as SGAT on the NASDAQ. It switched to the Big Board with the new symbol SEG. The latter date is used because listing on the NYSE is a major change that makes the stock more marketable. I have found that there will be shared-degree areas between the old and the new chart, so you pick up the effect or the "echo" of the old chart in the new one through these zodiacal degrees. The horoscope of incorporation has its use in describing the fundamentals within the company. It is not as useful as the first-trade chart in forecasting future price movements.
Recently, Citibank and Travelers Group merged to form Citigroup. The first two charts are dropped in favor of the new chart for the merged entity. Reason: when portfolio managers consider taking a position, they evaluate the new company and stock, not the earlier individual stocks. As far back as 1943, George Bayer made the same observations.
Shared Degree Areas
One planetary method simply identifies parts of the zodiac that are sensitive for a given group of stocks or companies. Let us look at the technology group as a an example. IBM, Microsoft, Compaq, and Oracle are leaders in their fields. The first-trade charts all have some very close and dynamic aspects as laid out below:
IBM (2/14/24): Mars= 16 Sag 33; Jupiter= 16 Sag 03; Uranus= 16 Pisces 14; Moon= 14 Gemini 07.
Microsoft (3/13/86): Sun= 22 Pisces 43; Mars= 22 Sag 23; Uranus= 22 Sag 17.
Compaq (12/10/85): Sun= 18 Sag 29; Uranus= 18 Sag 13.
Oracle (3/12/86): Sun= 21 Pisces 43; Mars= 21 Sag 50; Uranus= 22 Sag 16.
These stocks and the overall market topped with the solar eclipse of March 9,1997 at 18 Pisces 31. The Mars station of April 27,1997 at 16 Virgo 44 occurred as these stocks hit lows and suddenly jumped into new uptrends.
It is easy to see how activity at 16 to 22 mutable would effect all of the horoscopes. By working with horoscopes from the same industry, one will see how the stocks are tied together in this fashion. Actually, there are many about 30 to 40 tech horoscopes with planets at these degrees including Dell, Digital Equipment, Hewlett Packard, Apple, Intuit, Lexmark, Infoseek, Computer Associates, and Quantum to name a few.
Obviously, we are relying on two traditional astrological methods: shared degree area and orb. When I was a basic student, John Townley said that shared degree area was the most important consideration in synastry. And, the closer the orb, the greater the energy. In the technology example, we saw both principles at work. The best procedure is to take the leading stocks in an industry and put them around the same wheel. Then look for the shared degree areas. In addition, the behavior of any single stock will be further modified by other aspects to the natal chart. For example, I watched MSFT produce one positive earnings surprise after another in 1998 because first Jupiter and Uranus, and now Uranus alone have been hovering over the midheaven. This is also a testimony to the accuracy of the horoscope.
In late March, I forecast a jump in these stocks in an article on the internet. Jupiter was in mid-Pisces, approaching the tech shared-degree area with Venus. IBM at 104 3/8 gave daily and weekly technical buy signals. The combination of these signals and Jupiter activating the first-trade chart was an early warning of a run to the 120 area. In order to further demonstrate the power of this technique, I ran the relative strength graphs for some of these technology stocks for the same month. This type of graph depicts the prices of selected tech stocks divided by the S&P 500. So if the line is rising, the stock price is appreciating faster than the S&P. If the line is flat, the stock is moving in tune with the S&P. But if the line is falling, then the stock is underperforming the index. This is the benchmark used to evaluate fund managers. The graphs show that each of these stocks suddenly began to outperform as Venus and Jupiter passed through the mutable degrees in April.
In November of 1998, Jupiter and Mercury stationed at 18 Pisces and 18 Sagittarius, respectively. This again activated the degree area, leading to an acceleration that propelled the tech sector into the number one spot for the entire year. Earnings reports came in way over estimates, as signaled by the stations of Mercury and Jupiter. Microsoft's (MSFT) earnings were up 75 percent, quite a feat for a company of that size. I was able to foresee this rally months before as reported in my monthly fax, Considerations magazine, and on Reuters TV in a May interview with Kathleen Tanzy. The Saturn-Neptune square on April 6 was a peak for many tech stocks, especially the internet issues.
MSFT is depicted as chart 1. At the  of the fourth-quarter earnings release, Jupiter passed over the Sun at 23 Pisces in fourth harmonic to Mars and Uranus at 22 Sagittarius. But Jupiter was not the whole story. Note that Uranus was directly on the 12 Aquarius midheaven at the of the earnings release, with the January 31 lunar eclipse only weeks away. If this were the natal chart of a person who was about to make an announcement, what type of news would you expect? Positive news was indicated by the chart. Wall Street research demonstrates that stocks make big moves when earnings releases are more than one standard deviation from the mean of estimates that are posted by analysts. Graph 6 shows the strong 4th-quarter move up in MSFT.
With the extremely positive contacts in the 4th quarter behind the stock, MSFT's relative strength versus the market will likely dwindle and come closer to its historical norm (which is above-average, anyway). Saturn will move up to square the midheaven in June and the Saturn-Uranus square will be only 3 degrees off of the midheaven. This is not devastating, but it is a lot less positive than the aspects that we have just witnessed. Therefore, it is likely that MSFT will be a sell in the spring of 1999.
But wait. What about the rest of the tech sector? Will MSFT be a weak stock in a weak sector or in a strong sector? First, astrology 101 tells us that Aquarius and Uranus rule technology. Uranus opposite Vesta last summer contributed to the market's decline, and the technology-laden NASDAQ got hit harder than the S&P. The Saturn-Uranus square does not appear to be favorable. But let us look further.
The NASDAQ (chart 2) was born on February 8,1971 with two planets and the Node in Aquarius and the Moon in Leo. The 19 Aquarius Sun will be close to the square, and will be eclipsed on August 11. In addition, note that Saturn will be passing over its natal place at 16 Taurus. This does not look bullish. But let's proceed even further.
A Market of Stocks
Wise men say that it is a market of stocks and not a stock market. That is, the action of the overall market is simply the accumulated price action of all of the stocks within that market. Technical analysts have developed overall market indicators based upon the action of a number of stocks. One such barometer is the number of stocks trading above their respective 50-day moving averages. With the Financial Trader, I was able to scan a database of 1133 NASDAQ stocks. There are 5600 stocks on this exchange, but many of the issues are absolutely tiny. In fact the 50 largest stocks (less than one percent) on the NASDAQ by market capitalization account for 75 percent of all the trading volume. So this sample of 1133 of the largest stocks likely accounts for more than 90 percent of NASDAQ trading activity.
Now, referring back to the horoscope of this market, recall that this is an Aquarian entity that is noted for technology stocks. The Financial Trader scan reveals that 276 of the 1133 have their natal Suns in either Leo or Aquarius. In addition, 232 of the 1133 have the Midheaven in the same signs. Taurus-Scorpio is second at 211. So, we know that many of these individual stocks will get hit by the square and the eclipses. It looks like a volatile summer on the downside for the tech sector and the NASDAQ.
In closing, let's take a closer look at one non-NASDAQ tech bellwether, Compaq (CPQ). The stock is depicted in chart 3 with a 15 Scorpio Midheaven and a 14 Aquarius Jupiter. This stock will likely decline more than the average stock in its sector due to the direct hits at 15 fixed. I would not expect a recovery until Jupiter stations on CPQ's natal Mars in December of 1999.
An Update for the Year 2000
At the time of this update in August of 1999, the tech decline is underway. It will likely bottom in September or October. December appears to be a very strong month. A Financial Trader scan of the databases shows that the 25th degree of cardinal signs is the most heavily occupied degree in the charts of 38 health care stocks. This group also has a heavy presence in fixed signs, so it also took a hit from the summer grand cross. But there was a rally in late May and June as Mars stationed at 24 Libra and opposed Jupiter at 25 Aries, setting off this axis in the health care stocks. The December 1999 Jupiter station will likely set off another run in this group beginning in November.
The internet stocks are tracked by the Interactive Week Internet Index (IIX) which is a modified capitalization weighted index that consists of 49 stocks. It began with a base value of 66.66 on August 15,1995. A scan of this group of 49 stocks shows that 28 degrees of cardinal signs is the most populated by natal planets. In fact, a chart set for the IIX itself has the Moon at 23 Aries and Venus at 21 Leo and the Sun at 22 Leo. The Moon is very closely square Neptune at 23 Capricorn. So the Jupiter station at 25 Aries will also lift this group.
Many of these stocks began trading with Uranus at 15 to 17 Aquarius. In fact, some also have the Midheaven at that degree, such as Flashnet Communications, Cheap Tickets, and Ivillage (please note that these issues are not components of the IIX.
The February 5,2000 solar eclipse conjunct Uranus at 16 Aquarius will hit these natal configurations. In addition, the January 31 lunar eclipse will oppose Neptune in many of these charts while Jupiter sails over natal Saturn. And we must remember that Saturn will be at 10 Taurus moving forward to square the eclipse degree and Uranus in the spring. Thus, all of these hits to the internet first-trade charts will likely move the stocks up to a February-March high. So investors will want to take profits before a decline sets in that will be similar to the one that hit the NASDAQ last summer. (Note that the same degrees are being hit.) |
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d there was no place in society for a study that threatened the truths that these two other fields preached. Astrology came to be considered a "pseudo-science", and after generations of this stigma, it has remained out of academia - unchallenged and never investigated by the brilliant minds of successive generations for three centuries.
