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.

Tuesday, February 2, 2010

AAPL Time and Price Forecast Weekly Chart

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The chart above is the weekly progress of Apple stock. At first glance it would appear as though I overlayed some type of moving average but surprisingly the blue lines actually record the speed at which Mercury revolves around the sun. The progress of mercury has been labeled "B", "C", and "D." The decline in Apples stock labeled "A", happened such great velocity that it actually fell with the speed of which the Moon revolves around the earth. It is fascinating to learn that stocks, currencies, commodities etc, gain and fall in price at speeds which correlate with astronomical figures.

On the chart you will also notice 3 vertical purple lines. These purple lines indicate the date when Jupiter is at a 30 degree angle to the Earth. You will notice that Apple stock bottoms (peaks) prior to this conjunction and then begins to rally (decline) after the exact date occurs. It has been widely accepted within the technical analysis community that specific planetary alignments cause trends to change.

If this pattern continues with the same historical velocity then Apple should drop aggressively down to $144.39 by 07/05/2010 with the possibility of falling as low as 136.49 by 26/05/2010. However, 26/05/2010 marks the end to the decline and a major rally is to follow after this date has passed. (all dates are quoted as D/M/Y)

Note Feb 3, 2010- I want to further express that the planetary rate of incline/decline is expressed in heleocentric degrees of longitude.

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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.

AAPL Time and Price Forecast

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Historical evaluation of Mercury's heliocentric movement provides phenomenal price forecasting implications for Apple. For this reason, Mercury is the planet used to forecast price. The dashed green horizontal lines on this chart are Fibonacci retracement levels of 38%, 50% and 61.8%. The pink vertical lines represent the dates when Venus is at a 45 degree angle to the earth.

The first dashed green line is a 38.2% retracement level and serves as the primary target for this decline. Notice that there is a confluence of data at this green line which I have circled and labeled "A". The date of 17/03/2010 (D/M/Y) is an important junction where Mercury, Venus, and a Fibonacci retracement have confluence.

I am only slightly guilty of data fitting when deciding to use Venus as the planet degree time factor. However, planets further away from the earth did not have any time factors within the next several months when the most recent high date is used as an Ephemeris date (05/01/2010).
Additional Notes- 05/01/2010 is the same ephemeris that is used for Mercury's projection.
-The 38.2% retracement also has confluence with a Gann angle of 360 degrees down from the 05/01/2010 high of $215.59. The price of the Gann angle is $160.86

If this forecast becomes reality then Apple stock will have to reach $163 on or near March 17th 2010 at which point prices will reach a short-medium term low and a rally will ensue.
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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.

USD/JPY Planetary Angles

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This is my first published time forecast using planetary angles so its accuracy should be up to question until a track record can be established for this type of analysis. The chart provided in this posting is a daily chart of the USD/JPY.

Mars is the planet used for the USD/JPY. Price has been converted into the movement of "Mars" by tracking this planets longitude around the Sun (Heliocentric) and the Earth (Geocentric). The Geocentric movement proves to be reliable for support and resistance. The Heliocentric movement proves to be reliable for determining the date at which price meets the Geocentric resistance.

If this analysis is an accurate forecast of the USD/JPY then price is expected to peak on April 9th 2010 at approximately 97.50

The starting date for tracking the Geocentric Longitude of Mars for support and resistance is April 6, 2009. The starting date for tracking the Heliocentric Longitude of Mars for time forecast is November 30, 2009.

Sunday, January 31, 2010

How Traders and Investors Were Fooled in the 1930 to 1932 Panic

Investors and traders lost money in this great panic because they listened to other people who knew less about the market than they did and who were simply guessing. many so-called wise economists said that the bottoms in November 1929, would not be broken and that this decline had corrected all the weak spots in the market and that the bull market would be resumed. They said the same thing about the breaks in 1930, 1931, and 1932. When the market actually reached bottom they did not know what to say because they had been fooled for so long. They had not studied past history enough to know that after the greatest advance in history and culminated in 1929, the greatest panic in history must follow and that it would require a long time to liquidate stocks.

Every time stocks made a bottom, the newspapers, government officials and economists said that it was the last bottom, but stocks when down, down, down, until people lost faith and hope in everything. They went lower than anybody dreamed they could go. That is what happens when everybody decides that stocks cannot go down or that they cannot go up- they always do the opposite. The public is always wrong because they follow no well-defined rule and are not organized. People believed that the government purchases of cotton, wheat, and loaning money could stop the depression, but when once a cycle is up and prices are due to decline, nothing can stop them until it has run its course. The same is when the main trend turns up, neither government interference nor anything else can stop the advance until it runs its course.

-W.D. Gann
New Stock Trend Detector, 1936

Friday, January 29, 2010

USD/JPY 500 Pip Rally

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This position is risky for 2 reasons.

1) Weakening stock market could drag USD/JPY lower.
2) It is possible that wave 4 has already been completed, thus no additional wave C of 4 is required.

$95.36 is the long term target for the forecasted rally. From the most recent USD/JPY low, wave count would indicate that this rally is corrective in nature. The only wave formation up for discussion is whether the decline from the 50% retracement has been wave 5 lower OR an X wave. If it is an X wave then this corrective rally is expected to extend further up to 95.36

a-b-c (A), >Completed at 50% retracement<
X, >Completed at 89.12<
a,b,c (C) >Began 27/01/2010<

Wednesday, January 27, 2010

Oats Daily (CBOT)

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* Oats (CBOT)- Currently $226

* The price of Oats has dropped precipitously over the past 6 trading sessions. Peak to trough it has dropped $58.75 on massive trading volume. To find a day with higher trading volume, you will have to look back to June 16, 2009. The only red flag I can find which pointed to this decline, occurred between November 23/09 and December 4/09. During this period we witnessed open interest decline by 2846 contracts (14,230,000 bushels).

* Open interest declines when long positions are sold out or when short positions are bought back. Amazingly, the November and December trades didn’t have as large of impact as its OI changes would warrant on prices. At the time it would be difficult to determine that the floor was being taken out of the market. However, OI changes in Oats Futures positions indicated that institutions were quietly and discreetly exiting their positions during the end of November 09.

* Long term prospects for Oats remains mixed with bullish potential if prices remain above $188.25 and bearish potential is prices remain below $281. This hundred dollar price range will serve as a great price region for sellers and buyers to establish short term positions.

* Current support targets include $221-$225 with the possibility of traveling as low as $217 before prices rebound.

* If $217 is broken, then next downside target is $203.5

* The first minimum upside target is $251.5

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