Can astrology predict financial markets?? « Mathematical Investor (2023)

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By David H Bailey, on June 17th, 2021

Can astrology predict financial markets?? « Mathematical Investor (1)

Venice astrological circle; credit Wikimedia

Astrology in finance?

In a previous MathInvestor article, we mentioned how absurd it would be if someone offered predictions of stock or bond prices or cryptocurrency rates based on astrological signs.

(Video) HOW TO USE ASTROLOGY & NUMEROLOGY TO PREDICT THE STOCK MARKET AND MAKE SMART INVESTMENTS

Consider for a moment that financial market prices are based on a confluence of many thousands of factors worldwide, including developments in science and technology, changes in consumer sentiment and preferences, changes in prices of production, public health emergencies (e.g., Covid-19), political developments, competition with other financial instruments and even changes in weather. These prices are negotiated electronically, on behalf of millions of investors around the world, on computers in large, sequestered data centers. Each day, highly trained mathematicians, statisticians, econometricians, and computer scientists, labor (with varying degrees of success) to ensure that their organizations’ sophisticated computerized trading operations generate statistically significant profits.

Also consider that the movements of the Sun, Moon and planets, along with the backdrop of stars and constellations in the night sky, have been predictable based on known physical laws for centuries, and are known much more accurately today by scientists armed with high-precision data collection equipment. Further, no physically real effect could possibly connect planets, stars and constellations, which are millions, billions, trillions and quadrillions of kilometers away, with highly interconnected trading and analysis operations, performed in closed rooms out of sight of planets and stars.

So surely no person with even a modicum of scientific training would place any credence in such predictions of financial markets based on astrology?

Yes, people really do offer and believe astrological predictions in finance

Sadly, today there is, if anything, a boom in those offering and relying on such predictions. Several such financial astrologers were highlighted in a Washington Post article, dated 13 June 2021.

One person mentioned in the article, who uses TikTok videos to reach her audience, has amassed over 1,000,000 followers. As an example, earlier this year she read bitcoin’s “chart,” using its creation date, 3 January 2009. In a video, she declared

New moon in Capricorn, January 13th, looks big for bitcoin. … Little before that … Saturn will join the bitcoin Mercury exact by degree on January 11th, which looks like some corrections with Mercury and Saturn. It could be news about something that leads to a drop momentarily. But with this new moon, sun moon Pluto, right on top of bitcoin’s Jupiter, this is like atomic-level new beginning.

(Video) Financial Astrology & Analysis of Commodity & Stock Market

In other words, this astrologer suggested that the position of Saturn and Mercury might indicate a drop in value, but Jupiter and Pluto indicates that the price of bitcoin would rebound from any correction and continue to rise. “It looks like such a bull run.”

Another astrologer who focuses on cryptocurrency, including bitcoin, wrote on Twitter in 2019:

Macro Economic: Why are astrologers so worried about the Saturn/ Pluto conjunction of 2020 ? Because the Saturn/Pluto cycle has correlated with major political, economic and cultural crisis. breakdown of existing structure and change. Important Saturn/ Pluto years were. 2/ …1914 w/ Beg of WWI, 1931 w/ great depression and run on the banks (and trade war!). 1947 w/ Start of the cold war, 1965 w/ height of the cold war & Vietnam war. 1982, w/ deep recession and 2001 w/ http://dot.com burst & the events of 9/11 and rise Al Quaeda 3/ Next one is JAN 2020 and some possible events are a deepening of the the trade war with China & cycle shift w/ US -China as major geo political rivals. Possible formal impeachment, possible recession and economic crisis, election year and possible unexpected black swan events.

Other examples include here and here.

Are we using pseudoscience too?

Before chuckling too loudly at astrologers and those who follow them, perhaps those in the finance community need to ask themselves if they are not also using forms of pseudoscience in their work. Some areas that deserve particular attention include:

  1. Technical analysis. Although the terminology is different, “technical analysis” is every bit as pseudoscientific in today’s markets as astrology. Does anyone really believe that low-tech, chart-eyeballing analysis of “trends,” “waves,” “breakout patterns,” “triangle patterns,” “shoulders” and “Fibonacci ratios” (none of which withstand rigorous statistical scrutiny) can possibly compete with the mathematically sophisticated, big-data-crunching computing programs, operated by successful hedge funds and other large organizations, that troll financial markets for every conceivable trading opportunity?

    It is particularly galling that major brokerages and financial news organizations, including (just in the U.S.), Charles Schwab, Merrill Lynch, Bank of America, Fidelity, E-Trade, Barrons, Wall Street Journal, Bloomberg and MarketWatch, often promote technical analysis, or at least provide convenient platforms and tools to pursue technical analysis. But in any event, it is clear that in spite of its hype, technical analysis does not work in the market. See this previous article for additional details.

    (Video) Stock Market Prediction Using Astrology

  2. Day trading. As we explained in a previous article, another unpleasant truth is that day trading, namely frequent buying and selling of securities by amateur investors through the trading day, does not work either. Study after study has shown that the large majority of day traders lose money, many with spectacular losses; only a tiny fraction regularly earn profits. For example, a 2017 U.C. Berkeley-Peking University study found that even the most experienced day-traders lose money, and nearly 75% of day-trading activity is by traders with a history of losses. See this previous article for additional details.
  3. Market forecasters. The record of market forecasters is, in a word, dismal. According to Hickey’s analysis of market forecasts since 2000, for instance, the average gap between the median forecast and the actual S&P 500 index was 4.31 percentage points, or an error of 44%. In 2008 the median forecast was for a rise of 11.1% The actual performance? A fall of 38.5%, i.e., a whopping error of 49.6 percentage points. Similarly, Nir Kaissar lamented that the forecasts have been least useful when they mattered most. Jeff Sommer, a financial writer for the New York Times, recently summarized the dismal record of 2020 stock market forecasters as follows: “[A]s far as predicting the future goes, Wall Street’s record is remarkable for its ineptitude.” Own our study of 68 market forecasters found accuracy results no better than chance. See this previous article for additional details and discussion.
  4. Doomsaying and zoomsaying. Sadly, doomsaying and its opposite, which one might term “zoomsaying,” are also all-too-common staples of the financial world. In a previous article, we listed numerous eye-catching headlines from the financial press, mostly warning of cataclysmic declines in financial markets worldwide. One prominent economist warned, in 2016, we are very probably looking at a global recession, with no end in sight. Another writer, in 2018, warned the next bear market will be the worst in our lifetime. A third, also in 2018, warned stock market will plunge more than 50%; another predicted a drop of 60%. But moderate to severe corrections are the inevitable fate of all financial markets. For example, during the 2020 Covid-19 market panic, financial markets worldwide lost 40% or more, before quickly recovering. But what is the point of constantly spouting warnings of downturns or upturns, when, statistically speaking, there is no scientifically solid basis for such predictions?

What should investors do?

One should not be too surprised at these findings. For one thing, they are a straightforward implication of the efficient market hypothesis (see also this report and this interview): in an era where markets are dominated by large, mathematically sophisticated, big-data-mining players, it is impossible for relatively unsophisticated forecasters and investors to consistently beat the markets, whether they rely on astrologers, crystal balls or “technical analysis.” True, the efficient market hypothesis has weaknesses, notably the fact that psychological factors often come into play in financial markets. But a superior grasp of mass psychology effects in financial markets can hardly be assumed by professional investors, let alone by individual investors, so this point is rather academic.

So what do writers such as Sommer recommend for ordinary retail investors? Sommer suggests that the majority of individual investors would do well to simply follow the advice of Vanguard Funds founder Jack Bogle, Berkshire Hathaway founder Warren Buffett and Dimensional Fund Advisors co-founder David Booth: invest in one or a handful of low-cost index funds, selected according to a sober analysis of appropriate risk and time frame, perhaps with the assistance of a qualified professional, and, most importantly, hold these investments for the long term.

As David Booth commented, “We don’t try to forecast the future. … We have no ability to do it. Nor does anyone else.”

June 17th, 2021 | Category: Essays

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FAQs

Can we predict stock market using astrology? ›

The placement of Mars and Rahu in 2nd house and Jupiter/Venus placed in the 11th house gives a good fortune in share trading. The conjunction of Moon and Mars making Chandra Mangal Yoga in the natal chart and Rahu and Mercury placed in the 11th house, the native will get good success in trading.

Is financial astrology real? ›

Financial astrology (also known as business astrology, economic astrology, and/or astro-economics) is a pseudoscientific practice of relating the movements of celestial bodies to events in financial markets.

Can we predict financial markets? ›

Key Takeaways. Predicting the market is challenging because the future is inherently unpredictable. Short-term traders are typically better served by waiting for confirmation that a reversal is at hand, rather than trying to predict a reversal will happen in the future.

Which planet is responsible for trading? ›

In astrology planet Sun is known to signify the stock markets, and it governs the markets for about a month. The movement of planets Mercury and Venus could destabilise the stockmarkets, but for a shorter period, say a week or a fortnight. Mars is responsible for triggering volatility in the markets.

Which stone is good for stock market? ›

Astrology says that garnet brings wealth, prosperity and pleasure to your life. The precious stone of Grossular Garnet is believed to bring good fortune and luck to people dealing with lotteries, share market, real estate, exports, imports and speculative businesses.

How do you trade astrology? ›

For those wanting to incorporate astrology into their trading strategy, there are three ways to do so.
...
How to Use Financial Astrology for Trading
  1. Follow the Planetary Movements. ...
  2. Create Personalized Charts. ...
  3. Create a Personal Natal Chart.
Jun 30, 2022

Why investors are reaching for the astrology? ›

Much as people who are feeling restless about the direction of their lives are more prone to become interested in astrology, investors who are uneasy about the direction of the markets will reach for the easy reassurance of an eye-catching diagram.

Can I be successful in business astrology? ›

If you wish to know whether business is suitable for you, then you must look at the 2nd, 7th and 9th houses of your horoscope. If the planets present in these houses are supportive to the ascendant in the 10th house, you have got a green signal to venture into a business.

Which zodiac signs will be rich in 2022? ›

5 Zodiac Signs who are likely to become Richer in 2022
  • Leo. Leos will have a long-awaited improvement in their financial situation. ...
  • Virgo. People born in the sign of Virgo will have a year like no other. ...
  • Scorpio. ...
  • Aquarius.
Mar 24, 2022

Which algorithm is best for stock prediction? ›

LSTM, short for Long Short-term Memory, is an extremely powerful algorithm for time series. It can capture historical trend patterns, and predict future values with high accuracy.

How do people predict market? ›

You simply plot the 200-day moving average on the price chart. When the price of the stock rises above the moving average line, it is a buy signal, and when the price falls below the moving average line, it is a sell signal. You can also look at the 50-day or the 10-day moving average. Trading is a game of probability.

How can math be used to predict the stock market? ›

Martingale is the mathematical method of predicting the future price of a stock based on the stock's current price. According to this theory, past returns or results do not matter in present scenarios and predict future prices. This concept is part of probability theory.

Which planet is responsible for financial loss? ›

Planets Responsible For Financial Problems

Mars: Mars is one of the main planets that cause debt and money problems in a person's life. When it combines with Malefic houses such as 6th, 8th and 10th house, it makes a person overconfident and foolish.

Which planet gives wealth in astrology? ›

Jupiter is one of the natural Dhana-karaka (significator of wealth), a strong Jupiter gives lifelong prosperity and financial stability.

Which house in astrology is for money? ›

The 11th house in astrology is illustrated as the house of money and fortune. It shows the money you shall accumulate in your life and the luck and hard work behind it. It also represents profits and gains because of your Karmic actions. Also, it shows your desperation to fulfill dreams, desires, and aspirations.

What is the most powerful stone to attract money? ›

Yellow Sapphire Stone

Yellow sapphire are known as one of the strongest stones to attract money and success. It is said that wearing this gemstone will ensure luck and success in all endeavors. It increases your profits and brings good fortune to your business.

Which gemstone is most powerful? ›

DIAMOND. Properties: Relationships, love, and mental clarity. It's the strongest gemstone, so it's only fitting that diamonds are said to bond people together (and not just because they're so pretty).

Which stone is best for luck? ›

Pyrite, also known as Fool's gold is called the ultimate stone of luck, prosperity and abundance as it attracts coins and cash summoning the Law of Attraction to bring you more and more. Yellow sapphire activates the solar plexus chakra which will radiate energy which will bring your big dreams into physical form.

What is Gann astrology? ›

Gann argued that all market activity has historical reference points. By studying ancient geometry and astrology, he found that market events and specific numbers repeated across time cycles, and Gann's indicators are based on his findings.

Are Aries good traders? ›

Aries – Ram- Aries is a Sign Devoted to Strength.

The natural leadership skills inherent in the Ram can manifest as a keen executive ability making Aries perfect candidates for CEO and other corporate positions. This tendency is also evident in which assets Aries can trade best, large multinational corporations.

Which planet should be strong for business? ›

DVB: The planets that are responsible for success in the stock market are Mercury and Jupiter. If there is a good combination of these two planets in a horoscope, then he/she has a strong potential to succeed in the stock market.

Which planet gives success? ›

Saturn's Position - Likewise, Saturn is the main karaka of Delay in Life and when it impacts Ascendant or 10th house of Career, then Success comes late in life, i.e. in 30s onwards.

Which planet is responsible for MBA? ›

Saturn and Sun are Two most important planet for Studying MBA.

Which zodiac is lucky in money? ›

As a result, it is not surprising that Taurus is one of the most successful signs when it comes to acquiring fortune. When it comes to pursuing their goals, their tenacity will pay off. Leos enjoy the finer things in life.

Which zodiac signs will be millionaires? ›

Because of their perseverance and great investments, Virgo is most likely to become a millionaire.

Which zodiac signs will be successful? ›

Zodiac signs most likely to become successful actors
RankZodiac SignSuccess %
1Gemini13.95%
2Cancer11.63%
2Leo11.63%
4Aries10.47%
8 more rows
May 5, 2022

How accurate are stock market predictions? ›

Predicting the success of shares might be a main asset for stock request institutions and could give actual effects to the troubles facing equity investors. By Using Stock Prediction algorithm overall accuracy is 80.3%.

Can we predict stock market using machine learning? ›

Stock Price Prediction using machine learning helps you discover the future value of company stock and other financial assets traded on an exchange. The entire idea of predicting stock prices is to gain significant profits. Predicting how the stock market will perform is a hard task to do.

Can data science predict the stock market? ›

So Does The Science Point To Data Science Being Able To Predict The Stock Market. The answer to this is a resounding YES! In a recent MIT study, it was revealed that computers outperformed humans by 57%.

How do futures predict the market? ›

The rise or fall in index futures outside of normal market hours is often used as an indication of whether the stock market will open higher or lower the next day. When index futures prices deviate too far from fair value, arbitrageurs deploy buy and sell programs in the stock market to profit from the difference.

What is the best indicator for day trading? ›

Seven of the best indicators for day trading are:
  • On-balance volume (OBV)
  • Accumulation/distribution line.
  • Average directional index.
  • Aroon oscillator.
  • Moving average convergence divergence (MACD)
  • Relative strength index (RSI)
  • Stochastic oscillator.

What is the 10 am rule in stocks? ›

9:30–9:40 a.m. Stocks that open higher or lower than they closed typically continue rising or falling for the first five to 10 minutes… 9:40–10:00 a.m. … before reversing course for the next 20 minutes—unless the overnight news was especially significant.

Do you need to know math to invest in stocks? ›

It is not necessary to be good at math to invest in the stock markets, however, basic math can help an investor identify good stocks and know how much returns they can expect from the same.

What is the golden rule of trading? ›

Don't use leverage: This should be the most important golden rule for any investor who is entering fresh into the world of stock trading, never use borrowed money to invest in stocks.

Do you need to be good at math to understand stocks? ›

“That's a gross misconception. You need not be good at math to be a successful investor. You only need to have a practical and pragmatic approach toward investing”.

Does numerology work in stock market? ›

How does numerology work for the stock market? Financial Numerology is used for guiding you on your investment in the stock market, Bonds, Fixed Deposits, and government securities. According to numerology, each number has a unique vibration and that certain beneficial numbers can give you luck of financial success.

Is Rahu good for stock market? ›

But to earn big money through Share and stock market trading, Rahu must support your chart. Strong Rahu in Lagna, 3rd 6th, 10th or 11th house is more desirable along with other rules discussed above. But only Taurus Gemini Virgo Libra and Aquarius Rahu will help to earn huge money and not all Rahu.

Which day is good for investment as per astrology? ›

Thursday: The day of Jupiter is considered to be auspicious to buy a valuable item such as gold, and to do investments.

Which Hora is good for share market? ›

Eleventh Lord or house should be placed well which indicates gains. Exchange of second and eleventh house will prove beneficial for the query relating to the stock market which will indicate a gain of wealth. Benefics placed in 3rd, 5th, 7th, and 11th houses will show good results.

What number is lucky for money? ›

Money number 6 in numerology

Considered to be the money attracting number, people falling under this will have the most luck when it comes to monetary wealth.

What number means money? ›

Angel Number 888 Means Money!

This number is a powerful sign of abundance and wealth.

Is the number 7 Good for money? ›

Finance: The 7'person can be prone to financial challenges due to the eccentricity of the vibration of the number 7. The 7 person is generally able to earn significant prosperity, but just isn't all that concerned about the monetary side of life.

Which is the house of investments in astrology? ›

The second house in the horoscope shows the financial status and wealth accumulation capability of a person. How sufficiently we would accumulate wealth in life is seen from the second house of our birth chart.

What happens when Rahu is in 6th house? ›

It is often considered as the house of enemies, debt and health issue like diabetes. Personality trait of individuals with Rahu in 6th houseWhen Rahu is in a favourable position in the 6th house, natives are likely to enjoy a pink health. They will be able to cure any health ailment promptly and effectively.

What does Rahu in 9th house mean? ›

Those who have Rahu in the ninth house of a horoscope will possess creative or special abilities under its influence. This can help these people engage in some creative or special fields of profession and they may achieve success through them, as indicated in their overall horoscopes.

Which zodiac signs will be rich in 2022? ›

5 Zodiac Signs who are likely to become Richer in 2022
  • Leo. Leos will have a long-awaited improvement in their financial situation. ...
  • Virgo. People born in the sign of Virgo will have a year like no other. ...
  • Scorpio. ...
  • Aquarius.
Mar 24, 2022

Which zodiac signs will be rich? ›

4 Zodiac Signs That Are Most Likely To Get Rich This Year
  • 1) Sagittarius.
  • 2) Aquarius.
  • 3) Leo.
  • 4) Scorpio.
May 17, 2022

What are the lucky zodiac signs in 2022? ›

Ox and Goat are the luckiest zodiac signs in the year of 2022. For those born in the years of the Rat, Snake, Monkey, Pig and Dog, you will need to make comparatively more effort in order to make achievements.

Is Rahu in 11th house good? ›

Rahu in the 11th house gives a massive amount of wealth, especially during its Dasha. This Rahu gives provides success after the age of 31 or 34. In the 11th house, Rahu provides gains from opposite sex, association with persons of doubtful integrity or even ill-health.

Which Hora is good for education? ›

Jupiter(Guru) Hora : The Hora of Jupiter is highly auspicious for all auspicious undertakings. It is auspicious for joining a job, to start business, to meet the elders, to start a new course or learning, for court related matters, for all religious undertakings, for marriage talks and for journeys and pilgrimages.

Which Hora is good for buying clothes? ›

5. Jupiter Hora: Jupiter Hora is highly beneficial for duties including marriage, education, wisdom, meetings with high officials, and clothing purchases.

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