Mikula Forecasting Company

Horoscope Index: Raytheon

Here is a discussion of the Horoscope Index using Raytheon stock. This example will use a daily chart. The Horoscope Index is calculated by comparing two horoscopes. This can be setup for a stock in more than one way. I do not have the incorporation date for Raytheon so I am using the stocks first trade date. I would recommend using the incorporation date when ever possible because they have proven to better for trading than the first trade dates. But incorporation dates are often very difficult to find. In this example I am going to compare the first trade horoscope for Raytheon and the progressed horoscope for the same location. 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 instances when the index makes a large fast move either up or down which represents a significant change in the energy affecting a market. The start and end points of such a fast move represent a time window where we can watch for a Change In Trend (CIT). On the chart below I have identified a time window created by a fast move in the Horoscope Index. You can see on this chart, that during the Horoscope Index time window Raytheon stock started a fast upward price swing.



On the second chart I have again identified the start and end of a time window based on a large fast move in the Horoscope Index. During this time window the market started a down ward price move that lasted two and a half months.



It is often the case that the price move that starts close to these large fast moves in the Horoscope Index, end up being fast moves in the stock price. On the chart below I have identified a large fast move in the Horoscope Index that moved from the lower boundary to the upper boundary. The start and end of this Horoscope Index move represent the time window we would be watching. A few bars after the end of this time window a fast drop in the Raytheon stock price started.




The final chart for Raytheon show the next time in the future when the Horoscope Index makes a large fast move. This occurs in April 2009. This move in the Horoscope Index represents a point in time when the energy affecting Raytheon will have a significant change. We will be watching Raytheon to see of there is a CIT during this time window.