Can The Stars Predict Your Portfolio?

Ask any two traders, and they will both have their own tricks, formulas, superstitions, and practices for playing the market. But by reading the stars, Karen Starich has found a niche. Benzinga had a chance to connect with Starich, gaining some insights into market astrology and her unique methodologies.

Starich began studying astrology in 1992 following an interest in numerology.

“I was taught astrology directly by a couple of astrologers," Starich said. "It’s a little bit different. In astrology, it’s like a secret society: there’s really this ‘underground’ [that’s] not really public – it’s like art. . . There are certain people who are born with the gift. Maybe we gravitate to one another with this odd ability.”

With over 15 years of astrology expertise under her belt, Starich debuted herself publicly as a market astrologer and writer on The Motley Fool on February 2009. Starich wrote for the Fool until June of this year, when she began to work with Zentrader and Jeff Pierce, the momentum trader behind the site.

“Jeff was a good fit. We both have a lot of the same philosophy and Zen Trader fits with astrology. It really started to take off – we started to get a lot of good responses.”

Astrology has more than its share of negative feedback. Trading is based on numbers and calcuations - not unlike astrology - but the idea that looking at star charts can provide insights (accurately, at that) is laughable to some and at least skeptical to most. When asked, Starich respectfully demurs.

“It’s something that is not mainstream – there are a lot of people who say, “you’ve gotta be kidding me,’” she said. “What I welcome is for people to have an open mind and read what I have to write and jot the dates down. Go back and look after it’s happened.”

In this vein, Starich has more than a few examples of her predictions playing out. Her market notes on rare earth exports were on the mark here in June, and again here in July.

“Just by looking at US charts, and chart of China, I knew that there was going to be a challenge announced in the media regarding export of Rare Earth. Sure enough, Reuters came out within the day that I had written with news. . . The initial reporting was that [the results were not going to cause price increases] - even I was like, wow, maybe I’m wrong – but sure enough, when that date hit, the stocks took off.”

Starich took another look at rare earth exports in September (be advised: she highlighted February 24 and 25 as days to watch for news.)

Starich’s experiences are also personal.

Prior to the market crash of 2008, Starich saw several indicators warning of serious trouble. Trusting her instincts, she liquidated her family’s portfolio – and kept her nest egg safe.

When reflecting on 2008’s crash, Starich immediately mentions Uranus’ position as an indicator.

“I look at [Uranus] and I say, okay, there are some serious changes about to happen. I knew then that we’re going to be experiencing some serious changes about the stock market, and it’s not going to be the same ever again. . . I saw that there were meetings [in 2008]–right at the time they were meeting there was a serious transit that suggested that there was a plan, like a warning. Then Mercury went retrograde, and the whole thing got wrecked.”

Let’s talk equities.

To gain insight into a company, Starich studies the United States and Federal Reserve astrology charts, as well as the company’s chart if applicable (editor’s note: a company chart is widely created based on a company’s IPO date). If the company’s leader is particularly well-known or with an “extraordinary personality” – Starich uses Apple’s Steve Jobs as an example – she will run that leader’s star chart as well.

"I do use the fed chart a lot – The chart is [like a] re-incorporation of America because of power that that they have. It works a little different than the US charts. You have to as an astrologer know the differences. It is an art. There are real nuances."

Starich continued:

"When I look at a corporate chart if I’m going to do an analysis – I’m going to look at the overall chart to see where they have stress – SIRI SIRI as an example. When I did the initial chart of its IPO, they had a really harsh Jupiter transit. [SIRI] rocketed to such amazing success so quickly – it can give you “magical doors”. On top of that, they have some harsh transits which really kind of suggests that [the company is] attracted to unstable people. I think it’s just so funny, because look at Howard Stern – a classic example of someone who is eccentric and unusual."

Starich provides market insight with Astrology Traders, her new service, as well as through blogging on Zentrader.

"Simply: my goal is I have a weekly update, usually on the weekends, what I see going forward. I try to go out a couple of months, but usually short term people want to do trades now. I focus on sectors – gold, silver, corn, TBT, TLT, bonds, some currency updates, and on some general market updates."

You can find out more about Karen Starich here.