If you are looking for still another reason why Facebook IPO fell flat on its first trading day last Friday astrologer Grace Morris has a suggestion.
“Solar eclipses tend to move the market in new directions. But companies or projects started or initiated before an eclipse – especially a solar eclipse – are greatly handicapped and will probably not live up to expectations,” she said.
The Facebook stock opened at 11:30 a.m. on Friday May 18 and only managed to break slightly better than even on opening day, a bad omen for IPOs.
On Monday, the first trading day after the partial solar eclipse on Sunday, May 20, the price of Facebook’s stock dropped 11 percent by the close of the day.
Following an eclipse, Morris says the market tends to reverse itself and the trend is in the opposite direction. After 12 down days, the market was poised for a projected turnaround that was expected to push prices generally higher until the next lunar eclipse on June 4.
But it’s no sure thing that Facebook (FB) will be along for the ride, she said.
Morris has worked with clients for more than 20 years setting up successful incorporation dates, IPOs, and first trade dates. She writes and publishes two newsletters, The Right Time and The Astro Economics Stock Market Newsletter, which recommends stocks by sectors according to their favorable cycles.
A new cycle beginning in June will favor transportation, education, communication, media, telecommunication, travel and pharmaceuticals. She expects stocks in these sectors to generally outperform the market in the next year.
Morris’ record has included COOG, up 266 percent since 11/04; BIDU, up 938 percent since 6/07; NTES, up 140 percent since 4/09; CERN, up 189 percent since 5/09; EBIX, up 133 percent since 6/09; PCLN, up 405 percent since 9/09; MELI, up 206 percent since 9/09; SXCL, up 323 percent since 10/9; VRX, up 273 percent since 12/09; RAX, up 253 percent since 12/09; AAPL, up 209 percent since 1/10; LULU, up 436 percent since 1/10; FFIV, up 119 percent since 4/10; ALXN, up 25 percent since 7/10; and SWI, up 135 percent since 9/11.
In the first FB trade chart a favorable Sun/Jupiter conjunction is dominantly placed and the Facebook IPO did in fact get lots of action and attention on opening day.
But the stock may have accountability problems because Mars and Neptune are aligned in a stressful 180 degree opposition aspect, made more challenging because timing for the opening trade angularly placed the aspect where its effect will be more intense.
Other stressful aspects suggest the company may spend too much based on unrealistically high expectations for cash inflow. Or, as some analysts have suggested with hindsight, the IPO’s asking price may have been too high with too many shares hitting the market at the same time.
About the author