Why Stock Markets Change Directions

Astronomers have recently discovered dozens of Dwarf Planets and some of them have astrological influences on the stock and commodity markets.

With the help of these Dwarf Planets, the Magi Society is now able to more fully explain the astrological reasons why stock and commodity markets make major highs and lows.

The article below is a lesson on how to use Magi Astrology and the alignments of planets to help predict a major change in direction in stock and commodity prices.

We will be posting quite a few more lessons soon. Ultimately, our goal is to post articles that illustrate how to use Magi Astrology principles to explain all major turns in stock and commodity markets during the last 100 years.

USE MAGI ASTROLOGY TO PREDICT THE STOCK MARKET

BETTER THAN ANYONE ELSE AND
ACTUALLY SEE PROOF
MAGI ASTROLOGY REALLY WORKS!


January 10, 2010


For over five thousand years, astrologers have known Astrology Really Works! But no one has ever been able to prove it in a simple and convincing way.

Because there are so many vicious and mindless anti-astrology skeptics out there, the only way to prove astrology works is to develop a way to actually see astrology working with your eyes. And no one has been able to provide that kind of proof.

Until now.

The Magi Society is very pleased to announce that we have discovered and formulated a VISIBLE proof that Magi Astrology Really Works!

Believe it or not, our proof is VISIBLE, meaning you can actually SEE IT WORKING. You can see astrology working with your own eyes.

Every minute of every hour when any stock market is open, you can see Magi Astrology principles working.

As a fabulous side benefit, you also have the tools to predict the stock market better than any non-Magi person.

To be able to SEE THE PROOF with your own eyes, you just need to learn a little bit about stock charts because the visible proof is in the stock chart itself. If you want to actually UNDERSTAND THE PROOF that you will be looking at, you need to learn about FIBONACCI RATIOS, which has been a "secret" of successful stock traders for 20 years.

What Are Fibonacci Ratios?

Fibonacci Ratios is a technical analysis tool that stock traders utilize to help them predict stock prices. Investors began using Fibonacci Ratios only two decades ago but Fibonacci is now the rage among successful stock traders - they almost all use Fibonacci to one degree or another.

It is best if you understand Fibonacci Ratios before reading more of this article. To learn about Fibonacci, please read the information provided in the links below:

http://www.investopedia.com/ask/answers/05/FibonacciRetracement.asp?viewed=1

http://en.wikipedia.org/wiki/Fibonacci_Ratios

Fibonacci is now so popular that even the Wall Street Journal created a video lesson to teach what it is about. The WSJ lesson is overly simplistic and not all that good but you should still click on the link below to view the lesson.

http://online.wsj.com/video/technical-analysis-trainingfibonacci-retracements/80CDF1A6-8281-4F6F-B59C-562E1DA07C0B.html

After you view the WSJ video, you are probably thinking, "Hey, these guys talked about only the 0.618 and 0.382 Fibonacci Ratios and left out the other ratios." Well, that is why we said the lesson was not that good. But the fact the Wall Street Journal actually made a video lesson on Fibonacci is a testament to the popularity of Fibonacci.


Fibonacci Sometimes Works Like a Charm

(Editors' Note: By the time you get to this point in this article, we assume you have read the links above and you know the basics of Fibonacci Ratios.)

There are times when Fibonacci works so well that you may be very tempted to think you can become rich by using it. For example, Fibonacci was nearly perfect at predicting the low made by the Dow Jones Industrial Average during the historic stock market crash of 2008 to 2009.

Here are the details:

One of the best bull markets in history began in late 2001 and ended in October of 2007. In October of 2007, all the major stock markets worldwide made new all time highs and many thought the bull market would never end.

But in early 2008, the US stock market entered the worst bear market since the Great Depression and fell for fifteen months before finally making a bottom on March 6, 2009.

Amazingly, Fibonacci Ratios was successful in predicting precisely where the Dow Jones Industrial Average would make its bottom.

Believe it or not, the Dow Jones Industrial Average made its bottom nearly exactly at the classic 0.618 Fibonacci retracement level, just like the Wall Street Journal video lesson we asked you to see above. Below is a chart illustrating what we mean.

CLICK HERE TO ENLARGE

According to classic Fibonacci Theory, the stock market is most likely to make a major bottom very close to one of the five Fibonacci Retracement Levels.

In this particular case, that is exactly what happened. The Dow Jones Industrial Average made a bottom almost exactly at the classic Fibonacci 0.618 retracement ratio.

Fibonacci fans can jump up and down with joy and claim that Fibonacci worked like a charm.

Please note that the stock market goes up and down a lot. There are a whole lot of zigzags, and intuitively, it does not make complete sense that a mere five Fibonacci Ratios would be able to explain all the zigzagging of the stock market.

In your gut, you must be asking: Shouldn't there be more Fibonacci Ratios?

You would be right - there needs to be more Fibonacci Ratios.

Although the five classic Fibonacci Ratios worked perfectly for the Dow Jones Industrial Average, they did not work as well on the S&P 500 Index.

DIFFERENT STOCK INDICES ACT DIFFERENTLY

The Dow Jones Industrial Average is a stock index. So is the S&P 500 Index.

Different stock indices represent different groups of stocks. The Dow Jones Industrial Average is made up of only 30 stocks, whereas the S&P 500 Index is comprised of 500 stocks.

Logically, we would expect different stock indices to move up and down somewhat differently.

In the illustration above, we already showed you the chart of the Dow Jones Industrial Average from 1987 to now. Below is the stock chart of the S&P 500 Index for the same time period.

CLICK HERE TO ENLARGE

If you compare the two stock charts, you can see that both the Dow and the S&P made their lows on the same date: March 6, 2009. The Dow made its low almost right on the 0.618 Fibonacci level. But the S&P broke the 0.618 Fibonacci level and made its low about 60 S&P points lower.

This means that in the case of the S&P 500 Index, classic Fibonacci did not successfully predict the low because the S&P made its low in between two classic Fibonacci Retracement levels. The S&P 500 fell below the 0.618 retracement level and made its low about one third of the way in between the 0.618 and the 0.764 Fibonacci retracement levels.

It appears that Fibonacci needs more ratios in order to be more useful. But the Fibonacci Sequence does not give us any more ratios.

Here is where Magi Astrology comes to the rescue.

The five classic Fibonacci Ratios are not adequate because it does not always work. But Magi Astrology's ASTROFIBONACCI RATIOS just about always work.


AstroFibonacci Works Better than Classic Fibonacci

If you examine this next chart below, you can see that it is the same chart as the one above except we added one dark blue horizontal line. That dark blue line represents the Uranus/Pluto AstroFibonacci ratio of 0.661 and the line is nearly exactly where the S&P 500 Index made its low on March 6, 2009

CLICK HERE TO ENLARGE

AstroFibonacci Ratios work like Fibonacci Ratios - in other words, stock markets will most likely make lows on AstroFibonacci Ratios.

But there are nineteen AstroFibonacci Ratios and they work better than Fibonacci Ratios.

What are AstroFibonacci Ratios? They are ratios derived from Planetary Motion and they are the REAL REASON THAT classic Fibonacci ever works.


Classic Fibonacci works because of Planetary Motion

There are five classic Fibonacci ratios; these are:

0.236

0.382

0.500

0.618

0.764 (derived from subtraction 0.236 from one)

These are remarkably close to the Planetary Motion Ratios of:

0.240 and 0.234

0.3877 and 0.3902

0.509

0.6151 and 0.6011

0.760 and 0.766 (derived from subtraction 0.240 and 0 .234 from one)


WHAT IS A PLANETARY MOTION RATIO?


The PERIOD of a planet is the time it takes for the planet to make a complete revolution around the Sun.

A Planetary Motion Ratio is the ratio of one planet's PERIOD and another planet's period

For example:

The period of Venus is 224.70 days.

The period of the Earth is 365.256 days.

The Venus/Earth Planetary Motion Ratio is = 224.7 divided by 365.256 which is:

0.6151

Or just a mere 0.0029 from being exactly the same as the Fibonacci ratio of 0.618.

The Mercury/Venus Planetary Motion Ratio is = 87.969 divided by 224.7 which is:

0.3902

Or just a mere 0.0082 from being exactly the same as the Fibonacci ratio of 0.382

The table below lists all of the sequential Planetary Motion Ratios. (A sequential Planetary Motion Ratio is the ratio between the periods of two planets that are sequentially one after the other in distance from the Sun, such as Mercury and Venus, or Venus and Earth. But Mercury and Earth are not sequential because Venus is in between Mercury and the Earth. Mercury and Earth is a Leap Planetary Ratio, as we will better understand a little later.)


Sequential Ratios


Planet

Planetary Period

Sequential Planetary
Motion Ratio

AstroFibonacci Or
Classic Fibonacci Equivalent

Mercury

87.969 days (.2408 yr)

Venus

224.70 days (.6151 yr)

Mer/Ven = .3902

Classic Fibonacci Equivalent is .382

Earth

365.256 days

Ven/Ear = .6151

Classic Fibonacci Equivalent is .618

Mars

2.135 years

Ear/Mars = .4683

AstroFibonacci

Ceres

4.599 years

Mars/Ceres = .4642

AstroFibonacci

Jupiter

11.86 years

Ceres/Jup = .3877

Classic Fibonacci Equivalent is .382

Saturn

29.45 years

Jup/Sat = .4027

Equivalent to Classic Fibonacci of .382

Chiron

50.54 years

Sat/Chi = .5827

AstroFibonacci

Uranus

84.07 years

Chi/Ura = .6011

Equivalent to Classic Fibonacci of .618

Neptune

164.88 years

Ura/Nep = .5090

Equivalent to Classic Fibonacci of .500

Pluto

248.09 years

Nep/Plu = .6645

AstroFibonacci


To prepare the above table, we added Chiron and Ceres to the list of planets. This is because in Magi Astrology, Chiron is a Financial Planet, and so is Ceres. A Financial Planet has more influence on stock market rhythms than any other planets, and therefore ratios created by Financial Planets are the most important and therefore included in the table.

An AstroFibonacci Ratio is another name for a Planetary Motion Ratio. When we say, "This is an AstroFibonacci Ratio," we simply mean that it is a Planetary Motion Ratio.

We prepared another table below; the table below shows Leap Planetary Motion Ratios, which are ratios between one planet's period and period of the planet that is second farther from the Sun, such as Venus and Mars (skipping Earth, or leaping over Earth).


Leap Ratios


Planet

Planetary Period

Leap Planetary Motion Ratio

AstroFibonacci Or
Classic Fibonacci Equivalent

Mercury

87.969 days (.2408 yr)

Venus

224.70 days (.6151 yr)

Earth

365.256 days

Mer/Ear = .241

Classic Fibonacci Equivalent is .236

Mars

2.135 years

Ven/Mars = .288

AstroFibonacci

Ceres

4.599 years

Ear/Ceres = .217

AstroFibonacci

Jupiter

11.86 years

Mar/Jup = .180

AstroFibonacci

Saturn

29.45 years

Cer/Sat = .156

AstroFibonacci

Chiron

50.54 years

Jup/Chi = .235

Classic Fibonacci Equivalent is .236

Uranus

84.07 years

Sat/Ura = .350

AstroFibonacci

Neptune

164.88 years

Chi/Nep = .307

AstroFibonacci

Pluto

248.09 years

Ura/Plu = .339

AstroFibonacci


If you analyze the above two tables, you can see that each of the classic Fibonacci ratios is almost exactly the same as at least one Planetary Motion Ratio.

(If you are wondering where is the 0.764 ratio, you would know the answer from the links we asked you to read at the beginning of this article. The links explain that the 0.764 ratio is not derived directly from the Fibonacci sequence but was derived from subtracting the classic Fibonacci ratio of 0.236 from 1. We can do the same thing for AstroFibonacci and subtract the Mercury/Earth ratio of 0.241 from 1 and get 0.759.)

There are 19 sequential or leap Planetary Motion Ratios and there are only five classic Fibonacci Ratios.

All five classic Fibonacci ratios have at least one AstroFibonacci equivalent.

But some Planetary Motion Ratios are not classic Fibonacci ratios.

The Magi Society conducted extensive research into AstroFibonacci's influences on the price action of stocks and discovered that all 19 AstroFibonacci ratios work just as well as the classic five Fibonacci ratios.

Therefore, the only reason classic Fibonacci works is because AstroFibonacci works, and because all classic Fibonacci ratios are so close to AstroFibonacci ratios.

You can see AstroFibonacci working by creating stock charts with AstroFibonacci support lines.

The Magi Society has a Financial Astrology software program called AstroFibonacci that creates stock charts that helps you see AstroFibonacci Ratios working on every stock and stock index. With the help of AstroFibonacci version 7.47, we will create stock charts to show you how you can see Planetary Motion influence the stock market and how you can use AstroFibonacci ratios to predict stock prices better than anyone else.

THE ASTROFIBONACCI THEORY

The AstroFibonacci Theory is very similar to the Fibonacci Theory. The main principle of Fibonacci Theory states that stocks and commodities will most likely make bottoms at one of the five Fibonacci Ratio support levels. So it is not surprising that the main AstroFibonacci Principle is as follows:

AstroFibonacci Principle One:

Stock and commodity prices will most likely make bottoms

at one of the 19 AstroFibonacci ratio levels.

So according to AstroFibonacci Principle One, all stocks and stock indices "will most likely make a bottom" at one of the 19 AstroFibonacci ratio levels.

We have already seen that AstroFibonacci Principle One worked for the Dow Jones Industrial Average because the Dow made its bottom almost exactly at the 0.618 classic Fibonacci level and this is the equivalent of two AstroFibonacci Ratios (the Venus/Earth ratio of 0.615 and also the Chiron/Uranus ratio of 0.601).

And we also already saw that AstroFibonacci Principle One worked for the S&P 500 index because the S&P made its bottom almost exactly at the Uranus/Pluto AstroFibonacci ratio of 0.661.

The Dow Jones industrial Average and the S&P 500 Index are the two most widely followed stock indices. Classic Fibonacci worked on one of them but AstroFibonacci worked for both.

There is another very widely followed stock index we still have to check to see if it also conforms to AstroFibonacci Principle One. The Dow and the S&P 500 are the two most widely followed stock indices but the New York Stock Exchange index is considered the most significant because it is a much broader index. The NYSE index is comprised of every stock on the New York Stock Exchange.

Below is a chart of the NYSE Index for 1987 to now, showing all the 19 AstroFibonacci levels and the classic Fibonacci levels.

CLICK HERE TO ENLARGE

You will surely notice that the above chart looks crowded because there are a lot of red and purple lines going across the chart. This is because there are 19 red lines, each one representing an AstroFibonacci level, and there are also five purple lines, each of which represents one of the classic Fibonacci ratio levels. Whenever space permits, we have labeled each line in the right margin of the chart.

You might be thinking, "That's a too many lines to put on a single chart."

But each line is useful and we need all of them. The stock market zigzags up and down a lot and each AstroFibonacci ratio line helps us to know where a zig may end and a zag can begin. We will discuss this in detail in a future article.

For now, we would like to focus on the fact that the above chart shows that the NYSE Index bottomed on March 6, 2009, and the bottom was just below the Neptune/Pluto AstroFibonacci ratio level of 0.6645.

The Dow and the S&P bottomed almost exactly on an AstroFibonacci ratio level, but the NYSE bottomed just a little below an AstroFibonacci ratio level.

So does this mean AstroFibonacci Principle One still worked on the NYSE?

Our answer is a resounding YES and if you are a stock trader, you will readily agree and understand why.

Knowledgeable traders would call the NYSE action a "false break and reversal."

A false break and reversal occurs when a stock breaks a LITTLE below a support line, and then soon goes back above the support level and takes off on the upside. This type of stock activity gives a classic buy signal and in fact it is the strongest of all possible buy signals.

The purpose of Fibonacci is to give us buy and sell signals. This was a perfect buy signal so AstroFibonacci worked perfectly.

But if did not know about the Neptune/Pluto AstroFibonacci support level at 0.6645, you would not have known about the strong buy signal, because you would not have seen the "false break and reversal."


Magi Astrology Really Works!

What all this means is AstroFibonacci works better than classic Fibonacci and AstroFibonacci proves Magi Astrology Really Works!

Planetary Motion Ratios are decisive factors in creating the rhythm of the planets and they have a direct influence on the rhythms of all life and events on Earth, including how we all feel each day.

Once again, Traditional Astrology is totally useless because it is based on zodiac signs and the houses, and therefore has nothing to do with AstroFibonacci.

The Magi Society discovered AstroFibonacci and perfected Financial Astrology software to take advantage of it. Our software is appropriately named AstroFibonacci. You can use AstroFibonacci software to create stock charts that help you to visually see Magi Astrology principles working on stocks and commodities.

You can also use our AstroFibonacci software program to improve your ability to time big turns and big moves to stocks and commodities.

If you are a member of the Magi Society and do not fully understand this article or would like to learn more, we encourage you to attend our next Certification Workshop. Just email your Membership Director and ask how to enroll.

If you are not a member of the Magi Society and would like information on membership or our Financial Astrology Software program, please click here and send us an email. You do not have to be a member to purchase AstroFibonacci software.

Editor's Note: We know most of you are very interested in the recent saga of TIGER WOODS and we will post an article about it soon.



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