In the Stock Market, there are only 2 Phases, the Impulse Phase and the Corrective Phase. Success lies in indentifying these phases and in becoming " greedy when others are fearful and fearful when others are greedy" !
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The 10/10 World Financial Crash caused by the Financial Planet, Jupiter !
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Stock Market Tips - Contrarian Investing
In any market - gold, realty, stock & forex etc - the key to Market Success is Contrarian Investing. Buy cheap, sell dear is the principle in all markets -stock, realty, gold, forex etc.
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The key to Market Success is Contrarian Investing. The Stock Market has reached Zenith levels. Be careful about investing in the Stock Market when it is at high levels. Dow Jones Theory has it that higher levels cannot be sustained.
In some developing areas, ( but only in some areas in India ), Real estate is experiencing a boom . Kochin in Kerala, for instance, is developing fast & is an ideal place to invest. Realty prices have doubled in Bombay and Kochi because of IT Boom ( export one lakh crores INR). The places experiencing the Realty Boom are Hubli, Nashik, Faridabad, Coimbatore, Vizag, Poona, Bombay, Bangalore, Mysore, Chennai, Hyderabad, Kochi , Gurgaon, Jasola etc. Realty prices went up 30% in the last month in Hubli because of the IT Boom.
Know that all markets are governed by the RERC formula - Revival, Expansion, Recession & Contraction ! Recycling capital for capital appreciation is the secret formula !
The intelligent investor is always
Contrarian - that is he buys when the market is in a state of Recession
and sells high, when the market is at Zenith levels ! He is far from the Madding
Crowd, who go along with the Market. The Market is like the Lord. Like the Lord,
it helps those who help themselves and punishes the violators ! If you want to
be successful in investment, insulate yourself from the contagion of the crowd.
Remember, Warren Buffett became wealthy because he bought blue chips when the
Market was at Nadir levels and sold them at Zenith levels. Dow Jones
opined that the key to Stock Market success lies in exercising one man's
intelligence and the patience of six men ! Sell stocks at Zenith
levels & invest in real estate, which is now in a state of Recession. When
the Stock Market crashes, Realty will boom ! Sell Realty at Zenith levels.
Research has it that at that time, Stock Market will be at Nadir levels and you
can enter that field ! Recycle !
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Disclaimer
The market is around 16000. If you have a long term perspective, you can go in for blue chips. Indian economy will quadruple in the next ten years and the Sensex will shoot upto 50 K !. Prima Facie, the market appears to be bullish. The Decoupling Theory states that India and China will not be affected by the global meltdown. ( Is the WFC forging in a New Financial Order ? ). India seems to be on the recovery path. However we advise caution while investing or speculating.
The quintessence of Contrarian Investing is that one should invest at the Nadir. But we dont know the Nadir yet. We will have to wait. Wait we must, as the world is going through a Global Financial Crisis.
Once the Nadir or the rock bottom level is got, again we must wait. Because the market may lie low for some months, after touching the Nadir !. Only when the market exhibits bullish signals should we buy !
You can play the Bear but we warn you about the Corrective Phase. Please read our latest articles. If you invest now, you will do so at your own risk. It will not be a bad idea to invest in the MCX, the Multi Commodities Exchange.
Commodities Astrology ?
Gold has risen to $1600, after touching $1921.
We are in the midst of a commodity bull market cycle, which started in 2000. We have been advocating buying gold, from $900 onwards. Silver
has gone upto $32 and lead and others are following suit. Increased demand from China and India and the bearish nature of the stock market,
global cues all lead to this commodity bull market cycle.
Gold price is inversely proportional to the Dollex, the USDX. Jupiter rules gold.
It was observed that a Bull Market Cycle lasts for 18 years. In 1982, we had the stock market boom and the bust of 2000. Not only the stock market, but the dot com market also went bust. This started the commodities bull market cycle and experts say it will last till 2016/18. So the stock market is on a decline, along with Realty and dot com. On the contrary, commodities have gone up.
There are many reasons cited for the commodities boom. A falling US Dollar, the China Effect ( more than 700 million Chinese will be added to the consumer class by 2020), the India Effect ( more than 300 million Indians will be added to the consumer culture), tight supplies, demand more than supply and the interest rate cuts by the Fed.
Astrologically Jupiter in Aries, about to enter Taurus in May 2012, is responsible for the commodities boom. He rules Gold and other precious metals. ( Gurum Kanchana Sannibham ).
It has been observed that when the Stock Market is in Recession, commodities go up and vice verse. Hence these years will seem a boom in commodities.
Some of the reasons cited for the commodities boom
1)The Fed will lower interest rates
2)Supplies of oil, grains and metals are very low and the possibility of producing more in the next few years is low
3)The Dollex, the USDX, may decline furthur
4)As the standard of living rises in Chindia ( China and India ), more consumption will be the order of the day, leading to heavy demand.
In our articles we have given tips to beat the street. For furthur information about Portfolio Management, which scrips to hold, buy and sell, please contact info@eastrovedica.com?subject=SMA
Knowledge is the criterion, without which you cannot succeed. It is time to widen the horizons of K nowledge. In order to do that, we recommend reading the following digital products !
Jup
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Adverse Jupiter strikes India

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The downgrading of the US definitely had left its mark. Gold is rising to new levels and so is silver. Realty is in a state of recession.
Jupiter will be in Aries for some more time and it will take time for the stock markets to perk up. Some experts are recommending buying scrips when the Sensex comes down from the 15 K level. We advocate caution, as the Market can go down furthur. The stock markets are driven by sentiments and is more sentimental than fundamental.
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Gold Price(USD)
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We had warned in our columns that the markets are headed southwards.
The Sensex is now at 16084. What a drastic fall. On global cues, it fell 300 odd points yesterday. The Return of the Bear ?
Weak sentiments prevailed on Dalal Steet. It is not surprising to the men that see, as the planet of Finance, Jupiter, transits the adverse 10th for India.
L & T fell heavily to 1312 and Siemens to 829.
It is better to hold on for the time being. Provisionally down at 1.73% on Greek default fears , the Sensex may take time to recover. The market is falling for the second, straight day. All the 13 sectoral indices on the BSE is in the red and index heavyweight, Reliance, is edging lower.
After good auto sales in September, auto shares were mixed. Metal shares fell across the board, as global commodity prices fell on global economic worries. JSW Steel fell, as reports of a CBI raid was rumoured.
Deficit in August was 14 billion, as 28 billion exports were achieved against a 38 billion import.
In the long run, the Markets will bounce back. The Retail Revolution will do to India what electronics did for Japan and low manufacturing did for China. Now Wipro has started a rural BPO center and many educated people in the villages will get jobs. The teledensity in India is now 82%, but the Net broadband penetration is only 10%. In the coming years all these factors will rise and once the recession is over, Indian Sensex will scale new heights. Some experts have predicted a quadrupling of GDP in ten years. Maybe, it is possible. The Sensex may cross 50 K in ten years ? Possible. But what will be India's debt and deficit in ten years ? ut for now, the time is adverse and one can make a strategic retreat from the stock market. Lie low, till the recession is over !
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