Indians are the inventors of astrology. since ages we believe this ancient knowledge system to predict our future and hear our past. No wonder it thrives in the contemporary times where is complete unrest among people and volatility of the markets. The Economic Times report about the connection between astrology and market performance (24 July 2009)
It's more of tradition than astute trading strategy. Old-fashioned traders on the trading floors of Chicago Board of Trade and Kansas City Volatility in the stock markets. Board of Trade write wheat, corn and soy futures ahead of any major solar eclipse.
Brazilian and Mexican commodity dealers, who still go by conventional wisdom, take positions in agri-commodities a week prior to a solar eclipse. The tradition to buy food grains is pegged on centuries-old belief that solar eclipses bring about natural calamities which will in turn increase demand for food.
Conventional Indian traders would also have taken a trading call, or kept their options open, ahead of Wednesday’s solar eclipse. An ET study of nine eclipses from 2007 reveals that Sensex has fallen on lunar eclipses and risen on solar eclipses.
“Eclipses always have an effect on markets. That probably is one reason why even Wall Street traders keep an eye on eclipses and market movements,” said the US-based stock market astrologer Mahendra Sharma.
Take the case of lunar eclipse on March 3, 2007. The Sensex fell close to 6%, five days prior to eclipse and fell further 0.1%, post the cosmic event. Similarly, the market fell 3% five days prior to the lunar eclipse on August 16; the fall continued for another five days, shedding the market by another 3.5%. Deviating from the trend, the solar eclipse on February 7, 2008, resulted in the market losing over 6% in around 10 days. Mr Sharma is recommending investors to book profits before a sharp correction. “The call would be to wait until August 11,” he added.
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