Stock Market Astrology XIV

In the stock market, there are only 2 phases, the Impulse Phase and the
Corrective Phase. Most traders make money during the Impulse Phase and lose
it during the Corrective Phase.

Tide- Wave - Ripple Theory - 3 Major Movements of the Ocean ( Stock Market )

The primary movement is the Tide, the secondary movement is the Wave and
tertiary movement, the Ripple. The three movements of the Stock Market can
be compared to the three movements of the Ocean.

The Impulse Phase is based on the Primary Trend. If it is a long upward
movement, then the Impulse Phase is an Uptide and if the primary movement is
downward, then it is a Downtide.

The Corrective Phase is the Anti movement of the Primary Trend.
Impulse Phase = Primary Trend.
Corrective Phase = Anti movement of the Primary Trend ( The Dow
Jones Theory states that this phase will last 3 to 4 weeks but we find that
in India it normally lasts for 7/8 days ).

This Corrective Phase normally occurs as a secondary reaction during an
Uptide and as a secondary rally during a Downtide.

F & O ( Futures & Options )

Option ( Call or Put ) should be taken at the end of the Corrective Phase
( Secondary Reaction or Secondary Rally ) and should be exercised during the
Impulse Phase to make profit.

An option is a contract, which gives the buyer ( the holder ) the right. but
not the obligation, to buy or sell specified quantity of the underlying
assets, at a specific strike price on or before a specified time (
expiration date ).

In a Bear Market, Corrective Phase is Bullish and vice verse.

In a Bear Market, Impulse Phase is bearish.

Uptide - The Primary Upward Movement

Downtide - The Primary Downward Movement

While turnover in the Cash segment is 30000 crores per day, at Derivatives
segment it is 18000 crores.

During Downtide, the best Option is Put. You must watch the Resistance and
the Support levels of the scrip you are going to take the Option in.

The Wave like Nature of the Stock Market

The Stock market is like a Wave. It is ever fluctuating. Even in a day it
fluctuates.

We have to understand that the primary trend now is Bullish, viz an Uptide.
During these rallies, the intelligent sell off their stocks. In a Bull
Phase, secondary reactions last for 7 to 8 days. These reactions are also
very deceptive, giving the impression that the market is falling. During
these reactions, the intelligent accumulate stocks and sell off at the peak
of the primary trend.

In order to capitalise on market fluctuations, you have to do your homework
properly. Study the scrip you want to play. Study its top and bottom levels.
You can only short sell at the Resistance level and never at the Support
level.

Summing up, we have to play the according to the market and play it
correctly using the Impulse Phase and avoiding the Corrective Phase. People
generally lose during the Corrective Phase. The stock market is cyclical and
the Impulse Phase is always replaced by a Corrective Phase and vice verse.
He who knows the cyclical nature of the stock market alone can succeed !
Timing is everything and one can use the end of both the phases for profit.