Who, Why, and When?

This Beginners Guide to Financial Astrology must start with:

Who?, Why?, When? The key question is, of course, How?

This chapter aims to answer the first three questions The remainder of the book is an attempt to show "How" planetary cycles and market behavior are interlinked.

Who?

There is an often used quote attributed to J. P. Morgan that "millionaires don't use astrology, but billionaires do." I don't know whether his saying that is myth or fact. What I do know is that there are some individuals — and, indeed, certain generations — more willing to give credence to the correlation between planetary cycles and market trends than others.

In particular, my observation is that many of today's traders are intrigued, fascinated, and curious to know more — particularly those people who were born in the mid-1960s under rare planetary configurations. Members of this group are not fazed by being thought of as "outliers" and are content to make use of any system as long as it works. They might analyze levels of Swiss rainfall, rings on trees, or space weather conditions in their quest to find pattern and correlation with price fluctuations; blending the results with their understanding of market behavior (usually in the form of technical analysis). Their ongoing quest to decode the markets usually means they don't rule out any system. Curiosity about the possible link between "stars and markets" is not, of course, confined to those of this generation (nor are they ALL interested). The one fact that applies to all these people though is that they are only interested in what works — for them.

In that last sentence the keywords are "what works" and "for them." Fact is that one person's "system" may not work for someone else. Much depends on the type of trader and the markets in which they work.

The answer then to the "Who" part of our question is — anyone. I can only speak from my own experience, but the further up the chain of command the trader is within a company, the more likely it is that he or she will be at least receptive to the use of planetary cycles in forecasting — if not actively using this information already. Yes, this does include the Chairmen of banks, the CEOs of companies, hedge fund managers, and financial advisors.

Journalists would love it if I were to "name names" and yes, for sceptics this would surely give momentary pleasure. Yet this is of no real value to anyone: particularly as I cannot think of one client, investor, colleague, or friend who has traded ONLY using astro-information — it is simply a factor in their risk assessment and calculations. The "truth" as to how the information is put to use is generally a disappointment to journalists seeking a good story.

It has been my experience that those who want to make full use of financial astrology also have an interest in their own chart. Some will not trade during periods when they feel they are under negative influences. When we have worked together to analyze past and poor decision-making, we have found this to correlate to the effect of planetary transits that could have been signalled well in advance. Now alert to these trends, some traders I know will simply not countenance trading if a variation on the planetary pictures of those earlier times are set to repeat.

I cannot quantify the number of traders using astro-techniques and don't know of any research done in this area. I should say that I would also be slightly suspicious of the results if a survey of City traders using financial astrology were to be carried out (even if done anonymously). Part of the reason is that traders don't always know they are making use of astrology, per se. Though many will take account of New and Full Moons and, certainly in the City of London, the times of high and low tides (which often coincide with increased economic activity), they might not consider themselves to be using astrological techniques or see their behavior as being linked to cycles at work within our solar system.

Though younger traders (especially those born since the mid-1960s) have few qualms about discussing the role of the planets and trading, I have noted some reticence among older generations. Yet going back about 20 years or more, I recall too that there were many who did not wish it to be known that they were making use of astrology — even as they walked about with worn copies of ephemerides in their jacket pockets. These traders might well deny their interest if subjected to a survey. I remember one particular lunch time conversation with a highly respected economist and trader whose copy of the ephemeris for that year had dates highlighted and copious notes made in the margins. While he might well have denied his interest to some people, he was quite open in our conversation. Indeed, I was amazed to learn the thoroughness of his understanding and the sophisticated knowledge of harmonics that he put to good use.

Why?

So why do some people make use of planetary cycles? The short answer is that some traders recall instances where they can show that it gave them significant advantage. These traders have profited by making use of a tool which has been described to me as a "master timer." Others have heard such success stories and are anxious to explore any tool that may actually work.

Note that it is generally true of individuals who make use of astro-information — not companies. It's hard to imagine that, in the West anyway, a board meeting decision would be made to seek the opinion of an astrologer. However, the same is not true in many other parts of the world. In India particularly, there is general acceptance of a link between patterns formed by the planets in the solar system and general behavior. Meetings may take place at times suggested by an astrologer and contracts signed at what have been deemed to be auspicious times.

Upon occasion I have been asked by a UK company to explain why a certain time and date have been chosen for such an event. Presumably my clients worry that they might be at a disadvantage and want to be prepared, celestially speaking, for what may or may not ensue. The fact that this request has been made repeatedly suggests to me that my astrology-based explanations are decreed useful by company executives.

This book is targeted mainly at Western readers. While I have been invited into board meetings of UK companies, such instances have been few and far between. I have also always been aware of the scepticism of some of those seated around the table. My experience is that attempting to work with seasoned sceptics is more likely to lead to hostility than to good working relationships! On the few occasions where there is good rapport, on the other hand, our partnerships have lasted over a quarter of a century.

Canny investors, chief executives, financial advisers, and the like place great store in risk assessment. They do not bother with systems that do not work. Generally, they are prepared to accept that detailed analysis and reports take time to prepare. My experience has been that when I am unsure as to what any particular planetary configurations might bring — and where I'm able to identify a similar celestial pattern from the past — these individuals will gladly make access to archives possible so that a potential trend can be identified.

Those prepared to countenance a potential link between the planets and human behavior are generally receptive to the idea that cosmic patterns could be mirrored in market activity.

Though distressed when I've been wrong, or been wide of the mark, clients have been quick to point out that my reading of configurations does not need to be right 100% of the time. Half a dozen good astrological tips can be sufficient.

As important as forecasting likely daily trends is, the long-term view is also important. Clients value discussions about long-term trends and one refers to me as a "futurologist." That title is more deserved by the NASA scientists and computer software developers whose work permits me to know where the planets will be decades and even centuries into the future. By constantly referring back to similar planetary patterns in the past, and reviewing the history of those earlier periods, it is possible to offer ideas as to what the future may hold.

Serious investors and traders are understandably ruthless in the way in which they work. An ongoing relationship demands good results. These can never be 100%. The answer then as to why investors, traders, hedge fund managers, and financial advisers turn to financial astrology is that they know of instances where it has proven successful. I have little doubt that clients would stop working with me if our success rates were to fall. As it stands — and with the quality of work being produced by the growing number of financial astrologers working across the world continually improving — it seems more likely that the client work-load will increase.

In the late 1980s — and with a rare planetary configuration building — a colleague made the then-astounding forecast that markets would fall substantially in October of 1987. When that forecast proved sound, his client base expanded. I got involved with city traders around this time. In early 1989, while examining a rare planetary configuration due to take place later that year, I offered the opinion that an economic earthquake from the East was likely. Timing suggested that this would take place later at night UK time. I came to the erroneous conclusion that since Asian markets would be just opening for business, any decline would be reaction to events taking place in that part of the world. In fact, the Berlin Wall fell! The forecast was loosely correct.

As I had been precise about the timing of this particular economic movement, traders then pushed me for daily forecasts. This was not an area in which, at that time, I had either the technical ability or expertise. Two traders effectively mentored me during this period. We had regular calls just after 7 a.m. each day, during which I made suggestions as to how I thought markets world react to the lunar and planetary patterns of the day. Until both retired, we enjoyed a highly successful partnership working on the probable Financial Times Stock Exchange (FTSE) levels for the day and, in particular, gold trading.

I was not alone among the growing number of astrologers making political, social and economic forecasts at the turn of the millennium. Much had been made of the possibility of the so-called millennium Y2K bug causing havoc across the world. I met with several traders and investors through 1998 and 1999 who were fearful of the potential difficulties. The planetary pictures for the close of the 20th century and opening of the 21st did not suggest the calamity that they believed possible.

My far greater concern was that in the weeks ahead of the Jupiter-Saturn alignment that would take place at the end of May 2000, some extremely tense configurations would take place, and might well coincide with market drama. What is now termed "the dot.com crash" was exactly on planetary cue. Looking beyond 2000 — and like many other astrologers — I was concerned that Pluto's arrival in Capricorn would coincide with the collapse of banking structures and potentially, the bankruptcy of some countries. I wrote about this in my book, The Financial Universe published in 2004.

The answer to the "Why?" question then is that knowledge of planetary pictures has proven helpful and, at times, resulted in profit.

When?

Understandably, following on from these earlier forecasts, my work-load expanded. This suggested to me not only that potential clients were intrigued to know more, but that when the markets are in disarray — and when decline arrives as an apparent surprise to other forecasters — the use of astrological techniques becomes a topic of compelling interest.

In preparing this book and reviewing the last twenty years, I note that years of greatest interest in my work have coincided with major planetary configurations (a hardly surprising correlation to an astrologer!). Traders might not know that Jupiter will be at right-angle to Saturn for example, but they do sense turning points. When following "gut instinct," such tuned-in people will seek affirmation that "something is happening."

It is also true that inquiries from traders experiencing loss or crisis are more common than those who have "general interest." Most people tend to seek out planetary assistance when they surmise that no other system is working for them.

Working with a new trading client is more challenging. Often they may be raw from negative experience. It might even be that they seek quick and fast solutions to get them out of trouble. This is rarely possible: it is imperative to first explore the past. It is also crucial to understand the trading platform of interest and, importantly, how often the client (trader) wants to trade, and in which market. What works well for one client may not work so well for another.

I doubt that it is possible — using ANY system — to avoid loss. My experience has also been that though it is easy to identify optimum sell and buy points with hindsight, this ideal is rarely achieved in real time. The best that can be hoped for is to find periods of likely profit and to limit inevitable periods of loss.

When I first ventured into financial astrology, I learned quickly that clients appreciated an overview of the week ahead. This I would provide by sending out faxes (olden days technology now!) on a Sunday evening. From those missives a more generalized letter evolved (this is now my regular Full Moon letter) with a detailed and tailored report prepared for clients with specific interests.

Obviously, this highly technical work is not for general use. These reports require analysis of the client's chart, and the stocks, indices, commodities, or currencies in which they trade. No two pieces of work are the same.

In answer then to the question of "When?" do people turn to astrology, there is no simple answer. First contact might come at a time of stress. Once a relationship and rapport are established, contact is frequent. There are several clients with whom I speak every week.

How?

The last and key question, though, is "How?" The remainder of this book is aimed at showing how patterns in the solar system are linked to events in the marketplace.

In the following chapters, starting with a few basic building blocks, I aim to give an elementary overview of "How" an understanding of planetary cycles can enrich traders and investors alike. In the process, I hope that readers will share with me the wonders of our universe.

ASTRO-BUILDING BLOCKS

There are a few key building blocks of which I wish had been aware when I made my first foray into financial astrology two decades ago. They are as follows:

1. Solar Activity

Whatever the frequency of their trading, traders need to gauge potential volatility. In this respect, the first place to look should be to the expected solar activity of any given period.

The Sun's output is variable. It is perhaps unsurprising that bursts of energy in the Sun's surface are often reflected in bursts of activity in the marketplace. Most people are familiar with the sunspots that appear on the Sun's surface and the 11.2 year recognized rhythm associated with these. Those with keen interest in space weather also pay attention to extra-ordinary bursts of energy known as Coronal Mass Ejections (CMEs). These phenomena have the potential to put satellites, terrestrial electric grids, and information systems out of action. As a direct result, CMEs can bring chaos to the markets and, potentially devastating financial loss to some individuals. Unlike the cycles of the orbiting planets, these CMEs can only be forecast a few days in advance. Even then, vulnerable areas on Earth cannot be forecast with real accuracy.

Yet there is also very useful information for tactical planning to be gathered from observations made by solar scientists. The term "radio flux" is used to describe a solar rhythm that can be forecast as much as 27 days in advance. When the solar radio flux index rises above 50, there is increased market activity. This is valuable advance information for the frequent or daily trader.

Such information can be found at www.spaceweather.com. It is straightforward to use: when solar flux is high, there is increased likelihood of market volatility. Some traders might prefer not to trade on these dates, whereas others may alter their trading strategies to take account of the possibility of unusual conditions.

2. The Solar Apex

Our entire solar system is on the move. In the time it takes to read this paragraph, the Sun, Earth, planets, moons, asteroids, and other accumulated debris of the solar system will have travelled 3600 km (2200 miles). In directional terms, it seems the Sun is headed toward the Solar Apex: a position slightly southwest of the star Vega.