SECRETS OF FINANCIAL ASTROLOGY

By Kenneth Min

Lesson 14

The 'location' time windows are published daily on the 'Astrikos Data Sheet'. In last
week's lesson, I illustrated an effective method of implementing these windows for
your short-term stock trading. Using Cisco Systems (CSCO) as the example, you
saw how you could have shorted the stock on 3/07, at 23 7/8, placing a protective buy
stop at 25.00. This short stayed in effect until the opening (15-minute) bar on 3/13,
when you would have covered the position at 19 1/2. That gave you a profit on the
trade of 36.7% (utilizing the standard 50% stock margin). Today, we'll continue
with the Cisco analysis.

Cisco Systems is a component of the Internet Architecture HOLDRS (Amex:IAH).

This sector went into a sell mode (on the Solar Trend Indicator, also found on the
Data Sheet) on 2/02, which indicates that you should only work Cisco from the short
side. After marking all of the 'confirmed' 3-bar highs on the 15-minute price chart
that coincide with a location time window, you're ready to begin trading.

The next 'confirmed' 3-bar high in Cisco came on 03/15, at 21 3/16. The closing 3-
bar high occurred in the 12:15 (15-minute) chart, and this coincided with the 12:23
location time window. The prior low of 20 5/8 was made at the 11:15 bar. Cisco
moved below 20 5/8 at 2:45 that same day. Therefore, you would have been short
Cisco at 20 9/16, with the protective buy stop placed just above the 21 3/16 high.

The next 'confirmed' 3-bar high in Cisco came at 3:45 that same day, at 20 13/16.
This high coincided with the 3:51 location time window. At this point, you could
lower the protective buy stop on the trade to 20 7/8 (a tick above the 20 13/16 high).
That price was subsequently hit on 3/19, at the 3:45 (15-minute) bar. That gave us a
loss of 5/16 (or 3.0%) for the trade.

The next 'confirmed' 3-bar high in Cisco came on 3/20, at 21 7/8. The closing 3-bar
high occurred at the 12:00 (15-minute) bar, and this coincided with the 12:03
location time window. The prior low could be found at the 11:00 (15-minute) bar, at
21 5/16. Cisco moved below that point at 2:00 that same day. Therefore, you would
have shorted Cisco again, at 21 1/4 (a tick below the 21 5/16 low), placing the
protective buy stop at 21 15/16 (a tick above the 21 7/8 high).
The next 'confirmed' 3-bar high in Cisco came on 3/21, at 19 13/16. The closing 3-
bar high occurred at the 10:30 (15-minute) bar, and this coincided with the 10:32
location time window. That high was subsequently taken out at the 2:30 (15-minute)
bar that same day. This gave us a profit of 13% for the trade.

*Remember the definition of a 'confirmed' 3-bar high. That means that a 3-bar high
was made (either closing or intraday), immediately followed by a 3-bar downside
reversal.

If you had utilized this trading strategy in Cisco Systems for the past two weeks, you
would have had 3 completed trades. There were two winners, one for 36.7% and the
other for 13%. There was also one loser of 3%. I've included a 15-minute chart of
Cisco, and marked the 'confirmed' 3-bar highs with a down arrow. I've also placed a
star at the prior 3-bar lows...