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PLANETARY STOCK TRADING: FIRST TRADE CHARTSUAC 2012By Bill Meridianbillmeridian.comTo obtain this handout in PDF format, go to billmeridian.com/UAC2012stocks.pdfThe lecture in in 4 parts: INTRODUCTIONTHE EARNINGS SURPRISE METHODINDUSTRY ANALYSISTHE JUPITER METHODPart 1-INTRODUCTIONWe begin with a Quiz:1. What kind of announcement did this person make on the date of thetransits? What was the effect on his reputation or public image?Note position of transiting Saturn.Copyright Cycles Research, USA, 20121

2. What kind of announcement did this person make on the date of thetransits? What was the effect on her reputation or public image?Note positions of transiting Jupiter and Uranus.Copyright Cycles Research, USA, 20122

3. Chart 1 was the chart of first trade of Carpenter Technology. CRSreported earnings on January 25, 2011 with Saturn transiting on the natalMC. There were some offsetting soft aspects, but Saturn was making astation and was thus at its slowest and most powerful. The nest result was a10% drop by mid-day, but then the shares rallied back and closed down byonly 0.4.CARPENTER TECH ORD (41.4300, 42.5875, 38.7900, 42.4900, bruary4. Chart 2 was the first trade chart of UBS. UBS reported earnings before themarket opened on July 27th. Note the planets on the natal MC: Jupiter andUranus. The stock popped up when the market opened.Copyright Cycles Research, USA, 20123

Part 2: THE EARNINGS SURPRISE METHODEarnings Surprise Method General Rules:1. Look for the most powerful axis in space at earnings reporting time. Examples: Saturn opposite Uranus in 2008 Saturn opposite Pluto in 2001 1997: Jupiter, Uranus, Neptune all stationed from Oct. 8 to 14. 1994 stationary Uranus was 45 degrees to stationary Saturn.2. See how this axis hits the charts at the time of an announcement. Most UScompanies announce earnings on a calendar-year basis: January, April, July, andOctober. Quantitative studies have shown that stocks get most volatile duringthese months.3. EPS announcement dates are obtained at Yahoo Finance-Investing-StocksEarnings Dates and from html). See attached example.EARNINGS CALENDAR - REPORTS TO BE ANNOUNCED WEEK OF APR 15 - APR21Continental Matls CorpDgse Companies IncMarquee Energy LtdPlatinum Underwriter HlSeven Arts Entmt IncTitan Machy IncTriangle Pete CorpWuhan General Grp ChinaLee Enterprises IncCree IncStryker CorpUnion Pac CorpWells Fargo & Co NewPick N Pay Stores LtdPiper Jaffray CosQualcomm IncF5 Networks IncWesco Intl IncDu Pont E I De NemoursLife Time Fitness IncPeoples United FinanciaSouthwest Airls CoVerizon CommunicationsValmont Inds IncAllegheny TechnologiesKimberly Clark CorpCopyright Cycles Research, USA, 0.380.860.880.741.520.510.150.030.510.970.591.094

4. Select those that receive hits to the MC, Sun, Moon or Asc. within 1-2 degrees.Major axes containing 5-6 planets are also effective. The more, the merrier.Applying aspects are always stronger than separating aspects.5. Take this group and see how the progressed charts, direct and converse, are hit.Hits to the MC are best; the Moon & Sun are no. 2. This makes sense if oneconsiders the first-trade chart to be a mundane horoscope. The Moon in such achart represents the public. The Midheaven, as always, describes the “reputation”or public view of the stock. If the MC is very afflicted at the time of an earningsannouncement, then the report will not be well-received, and the stock willdecline. Note that the report itself may not be bad in the sense that the numbersmay not be unfavorable, but the reaction to the numbers will be bearish.6. Those that receive the most hits are likely to move the most.7. I recommend selecting about 10 very liquid stocks that have options. Avoid thosethat make hard aspects to your horoscope.8. You will note that stocks in the same industry have shared degree areas- zodiacaldegrees around which planets cluster.9. It is best to know about the technical chart patterns. Thomas Bulkowski’s book,Encyclopedia of Chart Patterns is recommended.10. The stock’s relative strength is frequently a signal to the subsequent direction.This is the stock price divided by the appropriate index, such as the S&P 500.11. Parallels and contraparallels are stronger than conjunctions and oppositions.Jupiter parallel the Sun of CSCO in the autumn of 2003 on the very day of theEPS announcement corresponded with a rise of more than 5% on that day. Ingeneral, price moves about 25% more if a hit is from a parallel rather tan aconjunction. Declination is powerful.12. Use Johndro’s concept of time orb. If there is a very close aspect, it dominates allothers in that time period.13. The importance of the 24th Harmonic- in 2004, I collected all of the horoscopes ofstocks that made big moves. Most of these were on the downside. It was apparentthat many, like KO, had planets in early degrees of cardinal signs. Intel, with theascendant at 2 Libra and the MC at 2 Cancer, was hit as was KO. Many of thesecharts would have been missed if the researcher did not use the 75, 105, and 165degree aspects.14. If you are engaging in risky options trading, you generally want to close theposition in 3 days. Most of the appreciation in the options occurs in day 1, usually66%. Closing it within a day is best. Make sure the options market is liquid.15. The 100%/85% rule: If you are 100% certain, you are probably wrong. If you are85% certain, you have a healthy degree of doubt.16. A quantitative analyst once calculated that the odds of buying any stock thatincreases in price are three-to-one in the investors favor if one is buying in a bullmarket. In a bear market, the odds are against the investor by twenty-to-one. Theseodds were determined for the overall market, but we must keep in mind that thereare about 90 industry groups in the US that move in their own trends. In 1994, forexample, the S&P barely rose while the semiconductor group was up by 27 percentand the homebuilding group fell by 40 percent. Stocks of a feather flock together-ifCopyright Cycles Research, USA, 20125

one has a choice of a bullish horoscope in a bullish group, select that one over abullish chart in a bearish group.17. B.F. King’s 1964 PhD dissertation at the U. of Chicago demonstrated that about70% of all of a stock’s movement is caused by the overall market, about 20% iscaused by the industry group, and about 10% actually derives from the companyitself. When looking at a 1st trade chart, keep in mind that one is looking at about30% or less of the picture.First Trade ChartsThese horoscopes are set up for the date that an issue was listed on a given exchange. Thetime is that of the opening of trading for the exchange for that day. The New York StockExchange (NYSE) and the smaller bourses began trading at 10 am until September 30,1985. Starting on that date, trading began at 9:30 am. Subsequent horoscopes are set for thisearlier time. The center for Wall Street action is the Big Apple, so all charts are set for NewYork City.Dates can now be obtained at NYSE.COM, but check the date versus another source such asBloomberg or some trading platform to be certain. Older dates are a bit dodgy because theNYSE let a group of temps load the original data in. Thus, the IBM date on their site was the1915 date (the stock of the prior company) and not the 1924 date. One can update data byreferring to Barrons Market Lab each week. See the attached example.I found a quote from George Bayer dating back 60 years that supports this view:“If listed on an exchange, erect it for the first day of listing on the exchange. In case astock first listed on the Curb or some other Exchange, and later transferred to the BigBoard, make a new horoscope for the Big Board and forget about the old listing. Thathoroscope died out with the transfer. The time used is 10 am, standard or daylight timeas the case may be. Do not watch for the exact time of the first trade. It might occur at10:10, 12:15, even the next day, but due to the fact that no important aspect occurredpreviously that would have caused a trade, the stock simply did not sell. However, itcould have been traded at 10 am, if one wanted to trade in it. This is important torecognize.”A bit of explanation about the history of a company and its shares will be helpful inunderstanding this concept. First, a business opens its doors. Then, if it has not already, itincorporates. If shares are sold to the public, the sale takes place through an underwriter.The underwriter lines up buyers and then sells stock on the initial public offering (IPO) date.This puts a supply of stock in public and institutional hands. About 5 business days later, thestock opens trading. A major new issue of a leading company may be listed directly on theNYSE, as Readers Digest was on February 15, 1990. The two dates, IPO and first listing,occur close together. I have found the first trade date to be the more important of the two.Customarily, the chairman or president of the company will go to the floor of the exchangeand make a token, personal purchase of 100 or 1,000 shares to kick off the trading. In thewords of a NYSE official, trading begins "almost immediately." Thus, the choice of the 9:30or 10:00 am time for the charts is supported by fact.Copyright Cycles Research, USA, 20126

GOOG’S FALLOn April 16, 2011, GOOG reported an earnings disappointment. The stockfell by 48 points or 8%. Pluto had stationed at 7 Capricorn 30 on the 9th. Thiswas close enough to an opposition to the 6 Cancer MC. Saturn squared theprogressed MC exactly on the 20th.Google660660GOOGLE CL A ORD (545.290, 545.750, 530.060, 530.700, 4206 12July192629August162330 7 13 20September27411October18251815November22 29 613 20 27December310201118 2431 714February22 28 7March142128411April18252MGoogle is a good example of an active stock that moves when the chart istransited. In 2010, Pluto began to oppose the MC of the stock at 6 Cancer.The price graph shows the big declines when the company reported EPS inApril and in July.GOOGLE CL A ORD (489.090, 490.749, 484.880, 488.970, 22295April1219Copyright Cycles Research, USA, 2012263May1017241June71421286July1219262August97

On July 20, 2007 Google (GOOG- August 19, 2004) fell more than 28points, almost 20%, when earnings did not meet expectations. We find that: Saturn was going to be exactly conjunct the Sun on August 8Saturn was semisquare the progressed MC on July 15Saturn was conjunct the converse progressed Sun on July 16Neptune was 135 degrees to the natal MC on July 23The Uranus station on June 23rd had been 105 degrees to the converseprogressed MC.The trine of transiting Pluto to the natal Sun on July 19th was insufficient tooffset the weight of these heavy hits.Copyright Cycles Research, USA, 20128

TextronTextron (TXT- 12/22/47 at 10am) reported on July 21, 2010 with Jupitertrine the MC. The planet was going retrograde 2 days later. Note that the orbis zero in both degrees and minutes. It does not get closer than this.TEXTRON ORD (20.9400, 21.2100, 20.6500, 21.1700, 219Copyright Cycles Research, USA, 2012263May1017241June71421286July1219262August99

Next, we will look at a series of such contacts:Microsoft’s MidheavenMicrosoft began trading with the MC at 11 Aquarius. Simply by watching thetransits to the MC, I was able to get a good idea of the stock’s behavior.Beginning in 1997, Jupiter and Uranus moved back and forth over the MC at11 Aquarius. Each earnings report produced a positive and unexpectedsurprise. The share price jumped in almost every quarter. The following transitreport of Jupiter and Uranus to the natal MC tells the tCnjMCPllMCRetrogradeMar 16 1997Mar 24 1997May 13 1997Jun 10 1997Aug 23 1997Oct 8 1997Oct 14 1997Nov 20 1997Apr 3 1998May 17 1998Jul 2 1998Jul 18 1998Oct 18 1998Nov 13 1998Jan 19 1999Feb 25 1999May 21 1999Copyright Cycles Research, USA, 201211 Aq58' D-17 12' -17 12'08 Aq40' R21 Aq55' R-17 12' -17 12'12 Aq07' D04 Aq44' D-17 12' -17 12'11 Aq58' D12 Aq44' R11 Aq58' R28 Pi03' R08 Aq49' D18 Pi10' D11 Aq58' D-17 12' -17 12'16 Aq48' R11 Aq58' D11 Aq58' D11 Aq58' D11 Aq58' D10

UraJupUraUraPllMCRetrogradeDirectPllMCAug 19 1999Aug 25 1999Oct 23 1999Dec 19 1999-17 12' -17 12'04 Ta58' R12 Aq52' D-17 12' -17 12'EFFECT OF MC CONTACTS ON MSFT SHARES-199739MICROSOFT (44.7500, 47.1250, 44.7500, 46.4375 3.0000)38373635343332Bullish Aspectsto MC31302928272625Bullish Aspects to 0003000x1002000Volume ril1421285May12192729June162330 7July1421284AugEFFECT OF MC CONTACTS ON MSFT SHARES-1999-2000MICROSOFT (49.0000, 50.0000, 40.2500, 46.4375 -2.7500)Saturn Station ---Square MC125120115Uranus Stationon MC------- upiter StationTrine MC------------ Bullish Aspectsto MCBullish Asectsto MC5045Bullish Aspects to MC4035Volume (3,249,827)350003000025000200001500010000x100Mar Apr May Jun JulAug SepNov Dec 1999Copyright Cycles Research, USA, 2012Mar AprMay Jun JulAug SepNov Dec 2000Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2001M11

The first graph is a daily chart of 1997 demonstrating how Jupiter, Uranus andtheir midpoint energized the MSFT MC in each quarter, sending the shares up.The second graph shows the last positive contact, a Uranus station in Octoberof 1999 which was separating from the MC. Again, the stock popped up. Buthere is where the bullish run of MC hits ran out and the storm clouds rolled in.The January Saturn station was square the MC. In the absence of anyoffsetting positive aspects, the shares sank. Note how MSFT fell until the lastquarter of 2000 when the Jupiter station at 10 Gemini trined the MC. The rallywas short-lived as Saturn came in to contra-parallel the MC.Test of Tech Share Price Movement In The 60 Days Around TheTransit Of Jupiter To The MCStocks 30Time Period 26 yearsAverage annual price appreciation 22.5%In the 12 days prior to Jupiter conjoining the MC, until 2 days after 12.4%in 14 daysOccurred 76% of the timeDeclination-To demonstrate the power of declination, we will look at thenatal first-trade chart of IBM. Note that natal Uranus is at 16 Pisces in closeaspect to Mars and Jupiter at 16 Pisces and the Moon at 14 Gemini. A test oflunar transits over natal Uranus was run over an 8-year period. If one simplybought and held IBM for 8 years, the return would have been 4.5% annually.If one bought IBM shares in the week before the Moon conjoined natalUranus and sold on the day after the conjunction, the annual gain wouldhave been 14.5%. However, by flipping the switch to declination, the annualgain rises to 16.5%. Thus, we can see the value added by declination.Copyright Cycles Research, USA, 201212

THIRD QUARTER 2006COSTCOJupiter was exactly sextile the progressed MC on October 12, the day of theearnings release. Jupiter was also conjunct Mercury on the 17th, and washeading for the natal Pluto-ascendant conjunction at the end of the month.There was an upcoming new Moon on the 22nd at 29 Libra on the natal SunJupiter conjunction. On the day of the lunation, there was a Mercury-Jupiterconjunction at 23 Scorpio near the natal Mercury-Pluto-ascendantconjunction. Transiting Pluto was very close to a trine to the converseprogressed (CP) MC; it was exact on the 1st. The November 29 Neptunestation was trine the CP Sun within 48 minutes of arc.COST jumped about 4. The call options began the 11th trading at 1.00 androse to 1.25 by the end of the day. The earnings exceeded expectations andthe calls rose to a high of 4.20 on the 12th, before settling at about 3.80 at theclose. I sold the calls at the close of the day of the announcement. Note howthe stock did not exceed that high in the days following. The calls drifteddown to the 3 area. Thus, selling on the day of the announcementmaximized the gain.This example is important for three reasons: It demonstrates the importance of an exact hit to the MC, theprogressed MC in this case, on the day of an EPS announcement. It shows the importance of taking the position on the close on the daybefore the announcement, followed by the sale on the day of theannouncement. Most of the appreciation in the options will occur inthe day of the announcement. The technicals indications supported the positive planetaryindications. Note that the momentum oscillator in the second stripshows higher lows. In addition, note that the relative strength versusthe NASDAQ 100 broke its downtrend line on the day before theannouncement. Also note that the share price was in a triangle,approaching the apex. The stock was due to move one way or theother.Copyright Cycles Research, USA, 201213

Copyright Cycles Research, USA, 201214

COSTCO Breaks OutCostco Wholesale Corporation (53.2500, 53.2500, 51.4000, 51.8200, .046.546.045.52.0Departure Analysis 1.5-1.5-2.0-2.0Relative Strength Comparative(NASDAQ 100 INDEX) (0.0124523, 50.0140.0140.0130.0130.0120.012Volume (44,985), Price ROC S EPS SURPRISEIBM jumped on the same day. Jupiter was sextile the Mc on the 21st, andPluto was sextile the Sun on the next day. Uranus, slowing into itsNovember 20 station, was trine Pluto and sextile the ascendant. The Octoberlunations were conjunct the progressed and CP Midheavens.Copyright Cycles Research, USA, 201215

Big Blue JumpsIBM (91.7600, 92.3400, 91.1816, 91.4100, -0.27000), Parabolic SAR 6.576.075.575.074.574.073.573.072.572.071.5EPS SURPRISE243171421AugustCopyright Cycles Research, USA, 3.072.572.071.5R1623306November13216

NETFLIXNFLX reported an earnings surprise on January 27, 2011. Note that Jupiterwas transiting over the converse progressed MC in the outer wheel.NETFLIX ORD (207.150, 21