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Astroecon is going to a daily format on January 16th 2008.
New / old day trading technique
The weekly format I have been doing here for the past year or
so has been concentrating on the big picture. As far as I am concerned the big
picture is set in stone. We have a bear market in
the valuation of those index numbers.
This type of big pic work has been applicable
to swing / position trading but is not intended for day trading. In the
trading environment ahead the risks of holding overnight will be increasing and
this makes position trading a lot more hazardous.
Back in 1997 I discovered an astro technique that IS applicable
to day trading. Some of you have been with me long enough that you saw intraday
astro being used here. I made this discovery when a subscriber invited me into
the spoos pit in Chicago. I was able to "feel" the rise and fall of
emotion in the pit and surmised that as the planets passed over the 4 angles ( ascendant
descendant midheaven and nadir) at that pit location that there was an effect
on the traders actions in the pit. I observed this for months to confirm this
effect and that technique became the most popular parts of my daily updates
which were published until 2001 after which I was hired in a semi exclusive arrangement
with a London institution.
Why did I stop employing this?
In my opinion the technique had become obsolete because too much trading decision
making had been taken out of human minds by computers and astrology has
everything to do with humans decision making. Over the last 5 years I
mostly used the intraday indications using angle hits to determine reaction to the
econ numbers and did not employ it through the entire trading day because my focus
was on position trading..
WHAT I SAW HAPPEN
As we got into the post 911 period I noticed a few things. The
security needs in NY caused the vast increase in electronic trading. More and
more volume began to be generated from locations outside of the actual
exchanges. Black box systems with very little HUMAN decision making done in
real time started to become dominant. It seemed to me at the time in 2001 and
2002 the days of the proprietary
trader domination over price action were ending. . This new electronic style started to drive the S&P
futures as the Emini and Globex trading increased to the point where the poor
fellows left in the spoos pit were no longer at the cutting edge of minor trend
changes. Liquidity in the spoos pit itself began to dry up to a point where I
surmised that the trading there had become only reactive to direct orders in
the electronic trading flow coming from elsewhere and bypassing the pit... Rather than driving the cash
market in NY as it was before 911 the locals in the spoos pit were being relegated to
a non dominant status as the tail of the dog.
Today I doubt that keying on the pit location astro in Chicago will work
in equity trading. I believe a massive shift has occurred and now NY dominates
most minor intraday trend change generation to an extreme. I see it the ETFs have
become the lead dog now and they are trading out of NY..
We MIGHT be seeing a shift
back to a LOT MORE human element out of NY for several
reasons.
** The sub prime debt problem occurred MOSTLY because there was an ASSUMPTION on
the part of many institutions that their black boxes and the modeling they are
based on would be fast enough to avoid the dangers. They were wrong.
There is going to be a LOT MORE layoffs in the finance business in the next year.
This is going to shift a LOT of trading decisions from mindless black boxes back
over to the proprietary trader again. More pros will be trading from
home.. Participation in trading by individuals will probably increase with
the changes since fall 2007.
The ability of the PPT to overwhelm the markets in manipulation mode is rapidly
diminishing.
The volatility needed to make intraday astro work better is returning.
So I am going back to my roots and doing a DAILY
update that concentrates on DAY TRADING early in 2008. The trading vehicles
will be the NY traded QQQQ SPY and the DIA.
See the new graphics
http://www.astroecon.com/lev2/00inday110.gif
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