Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved
Here is a discussion of the Horoscope Index for 3M, symbol MMM. This example will use a daily chart. The Horoscope Index is calculated by comparing two horoscopes. This can be setup for a stock such as 3M in more than one way. In this example we are going to compare the incorporation horoscope for the New York Stock Exchange and the progressed incorporation horoscope for 3M. See the version of this article on the MarketWarrior owner’s page for the exact indicator settings used in this example.
When we use the Horoscope Index, we are looking for large fast move in the index which represent a change in the amount of energy affecting a market. On the first chart for 3M there are two such occurrences. The first one occurred in December 2007. The Horoscope Index made a large fast move up at this time. The start and end of this move represents a time window when we would be looking for a Change In Trend (CIT). On this chart you can see the 3M stock started a fast decline during this time window. The second occurrence of a large, fast move in the Horoscope index occurred in March 2008. On the chart below, you can see 3M did not make a CIT during this time window. Not every occurrence of a large fast move in the Horoscope Index will cause a CIT, but most will.
Horoscope Index 1
The next large fast move in the Horoscope Index for 3M was a decline that occurred in June and July of 2008. The fast drop in the Horoscope Index represents a significant change in the amount of energy affecting the 3M stock. During this time window a bottom occurred and an upward swing in 3M started.
Horoscope Index 2
The next major move in the Horoscope Index occurred in September 2008. At this time a large fast drop occurred in the Horoscope Index. The start and end of this move represent a time window for a CIT. Right after this time window a very fast drop in the 3M stock price occurred.
Horoscope Index 3
The final chart for 3M shows the next Horoscope Index time window in the future. This will occur in December 2008 and represents a time window where the energy affecting 3M will be changing. The Horoscope Index will make a fast move up and the start and end of this move represent the time window. At this time we should watch for a change in trend in the stock price of 3M.
Horoscope Index 4
