Analyzing the Stock Market through Bazi (Part I)

In my previous post, I have mentioned that the stock market is represented by the Xin Si Pillar. As you put together the whole picture, the stock market, the exchange and the listed companies you will have the Three Harmony Combination of Si~You~Chou.

One of my classmate says that he will test it to see whether it withstand the empirical data. I am not sure how he does it but here is what I think and I run a test on it to see the accuracy. If he comes back to me, we will compare the result and I will post it on my blog to let you know.

For me, I see two possible ways for analyzing the stock market. (1) You can use the date of stock exchange birth chart to check the market of a particular country which I got from my teacher. (2) Or by using the Pillars above to gauge the whole situation of the global stock market. The second method is the one that I have run a test on and will explain below.

When you mentioned the global stock market, you inadvertently are talking about the US stock market. This because US have dominated the global stock market and economy for so long any changes or movement that affect the US will cause a chain reaction. Although in recent years we have seen that the situation are changing hand towards the BRIC (Brazil, Russia, India and China), mainly China.

Lets take a closer look at the Three Harmony Combination of Si~You~Chou. As you know by now the Si~You~Chou is a Metal combination, in this case I like to call it a "Collaboration" of three parties. Behind this collaboration is the element of water, (metal produce water by condensation) that is unseen or in the back ground. This is where the research analysts, technical analysts, chartist, statistician, economist and fund managers run the show. (At this point of time, maybe I am also one of them who are trying to track or analyze the market. Hahaha! J) As the water element represents emotion, this is also where the people who I like to call the "Punter" come in. They have a more professional name which is called "Day Trader" if you like. The word "sentiment" comes about from the water element as well since it related more to emotion. While we like to see the stock market supported by fundamental, it is more often than not that the stock market is powered by sentiment rather than rationality.

Basically, situation or Annual Pillar that support the Si~You~Chou collaboration or the water element will boost the stock market while Annual Pillar that disturb or hurt the collaboration or the water element will cause a bearish scene.

It should also be noted that the Xin Chou and Xin You Pillars push out the You. Technically speaking the You is present but is no obvious in the scene. (So the You position is a bit ambiguous)Fire element which is too strong also does not favour the collaboration.

Disclaimer: The accuracy of the above theory is still under research and scrutiny. This post should be read with great interest. Should you decide to use it with great interest, it will be at your own risk. Today, 10^th of January 2010 is a danger day. Don't say I didn't warn you. :Þ

To be continue…