Investing With The Stars Pt 3
Jupiter’s movement through a sign is a bullish for the industries ruled by the sign, as we mentioned. If the industry is expanding, chances are that the individual companies in that industry are also expanding. So earnings tend to increase and thus the share prices. But Jupiter tends to have other effects as well. Often we will see mergers and acquisitions happening in these industries. Sometimes stock splits. Sometimes spin offs or buy outs.
Saturn’s moves through a sign tends to produce the reverse. The industry starts to shrink and consolidate. Sometimes harmful government regulation impact on profits. Companies tend to cut back on investment, employees and overall waste. Earnings are either down or stagnant.
So if you are already in an investment in a certain industry Saturn’s move there would be a time to take profits. More sophisticated investors can sell short, buy puts or sell calls. Again this is not done automatically, one needs to watch the range of prices – one needs to be aware their range – and then act accordingly.
A bear market in an industry is more likely under a Saturn transit than with other transits. Saturn is like a red flag – a warning signal. Be on alert.
Saturn stays in a sign for two and half years – approximately. So his impact is long term. This bearishness can be used to your advantage – but you must be aware of prices. Towards the end of the Saturn transit – if you like a company and believe in its fundamentals – it might be a good time to take a position. You will get in at good prices. When Saturn leaves the sign, the industry and company will tend to recover.
Again, remember to do your homework!
Another important way to use astrology in your investing is to follow the phases of the Moon. When the Moon waxes – from the New Moon to the Full Moon – it is good to add to your portfolio – to enlarge it. When the Moon wanes – from the Full Moon to the New Moon – it is good to take profits. The waxing Moon is for planting. The waning Moon is for harvesting.
This is easy to use and easy to learn. This information is available online and in most newspapers. However, it is not so easy to apply. So common sense must be used.
Sometimes on the waxing Moon, the prices are very high and new investments are not that attractive. And, conversely, when the Moon is waning, it could easily happen that the prices are too low to take profits.
So, use discernment. Where possible, add to your portfolio on the waxing Moon. If not possible, pass. Where possible take profits on the waning Moon and again if not possible, pass.
Eventually though, you will get into a nice rhythm with this. After all, your portfolio is like a garden and you treat it as such.
This method is also good for traders. Take a position on the waxing Moon (as close to the New Moon as possible) hold it until the waning Moon happens and if possible (if you are not in loss) take profits then. Repeat the process on the next New Moon.