Wednesday, February 3, 2010

AAPL Weekly Retrograde and Declination

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When a planet is referred to as moving "Retrograde" it appears as though the planet is moving backwards relative to normal orbital motions. In reality, it only appears that the planet is moving backwards due to the presence of another planet overlapping its orbit. It is an astronomical phenomenon which appears to have implications for the movement of stock prices.

Declination is a measurement of a planets movement relative to the earths latitudes. A planets declination is measured in degrees against 0 latitude (equator). The planets declination will be described as North (+) or South (-). Some will argue that the declination of highest importance is located between 0 (equator) and 7 degrees. This region has been called the "Royal Highway of the Sun" as it marks the changing of weather seasons.

The research then begins by identifying the periods of time when a planet moves retrograde WHILE simultaneously having a declination of between zero and seven degrees. Naturally one would assume that these events happening simultaneously would occur less often and have a higher importance relative to price direction.
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In previous analytical work involving Apple, it has been shown that the planet of Mercury displays a high level of correlation. For this reason, Mercury has also been used in this example.
The chart displayed in this posting shows the weekly progress of AAPL with the periods of Mercury retrograde overlapped (vertical blue). At the bottom of the chart, not to be mistaken as a stochastic, is the planetary declination of Mercury. For the purpose of this analysis I will only focus on the periods of time regarding Mercury's declination as it passes between zero to seven degrees, this period has been identified with horizontal red lines.
I have highlighted three major data points on the chart labeled Event 1, Event 2 and Event 3. These events mark the period of time when retrograde is occurring for Mercury while the planet is simultaneously moving between 0 and 7 degrees declination. It is remarkable to see that these periods of time marked major turning points in the stock! It is possible to now conclude that a much larger decline in price is possible for Apple since a major turning point has recently been reached .
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Update February 12, 2010,
I have to remove my short term bearish bias on AAPL. All other analysis I have done, concludes that prices should rise into the dates surrounding March 17, 2010. The longer timeframe decline in AAPL still remains a strong possibility, but everything points towards short term strength for the next month.

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