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Fan Yao or Resulting Change Line analysis: stock analysis - buy, hold, wait

long yi

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Fan Yao or Resulting Change Line analysis

In this reading, we put the technique to a real test on stock price prediction.
The reading was casted on Feb 3 to predict whether it is worthwhile to buy the stock from company “A”.
起卦时间:2014年02月03日00时07分
起卦农历:甲午年正月初四日子时
神煞:天乙—子申 福星—丑亥 日禄—卯 羊刃—寅 驿马—亥 桃花—午 华盖—丑
干支:癸巳年 乙丑月 乙巳日 丙子时
旬空:午未  戌亥  寅卯  申酉

六神  伏神    坤宫:地天泰(六合)     巽宫:风天小畜; 巽上乾下
         【本 卦】           【变 卦】
玄武       ▅▅ ▅▅ 子孙癸酉金 应×→  ▅▅▅▅▅ 官鬼辛卯木  
白虎       ▅▅ ▅▅ 妻财癸亥水  ×→  ▅▅▅▅▅ 父母辛巳火  
滕蛇       ▅▅ ▅▅ 兄弟癸丑土     ▅▅ ▅▅ 兄弟辛未土 应
勾陈       ▅▅▅▅▅ 兄弟甲辰土 世   ▅▅▅▅▅ 兄弟甲辰土  
朱雀 父母乙巳火 ▅▅▅▅▅ 官鬼甲寅木     ▅▅▅▅▅ 官鬼甲寅木  
青龙       ▅▅▅▅▅ 妻财甲子水     ▅▅▅▅▅ 妻财甲子水 世

Aftermath factual data on actual stock prices:
Jan 31 2014: open, high , low, close: 61.00, 61.10, 60.08, 60.59.
Feb 3 2014: open, high , low, close: 61.00, 61.10, 60.08, 60.59
Feb 4 2014: open, high , low, close: 60.59, 60.95, 60.07, 60.24
Feb 5 2014: open, high , low, close: 60.36, 61.02, 59.92, 60.94
There is no financial gain in a short term trade because the price (opening, close) showed that the fluctuation is very small. The reading was done on Feb 3. Date of decision should be made Feb 3 without knowing the results from Feb 4 and 5.

Hexagram 9 is 巽宫:风天小畜; 巽上乾下.
The top trigram is wood and the bottom trigram is metal. Wood suppresses metal. 用克體無財
This means there will be no short term gain in buying this stock within a few days.
Now, we review the information in the resulting change line (also known as Fan Yao).
°Nine in the fifth place means:
If you are sincere and loyally attached,
You are rich in your neighbor.

Loyalty leads to firm ties because it means that each partner complements the other. In the weaker person loyalty consists in devotion, in the stronger it consists in trustworthiness. This relation of mutual reinforcement leads to a true wealth that is all the more apparent because it is not selfishly hoarded
but is shared with friends. Pleasure shared is pleasure doubled.

Hexagram 9
Nine at the top means:
The rain comes, there is rest.
This is due to the lasting effect of character.
Perseverance brings the woman into danger.
The moon is nearly full.
If the superior man persists,
Misfortune comes.

Success is at hand. The wind has driven up the rain. A fixed standpoint has been reach. This has come about through the cumulation of small effects produced by reverence for a superior character. But a success thus secured bit by bit calls for great caution. It would be a dangerous illusion for anyone to
think he could presume upon it. The female principle, the weak element that has won the victory, should never persist in vaunting it—that would lead to danger. The dark power in the moon is strongest when the moon is almost full. When it is full and directly opposite the sun, its waning is inevitable. Under such circumstances one must be content with what has been achieved. To advance any further, before the appropriate time has come, would lead to misfortune.

My understanding of the above two information: if one continues to buy and accumulate, there is no profit, and may even lose money. If it is a long term investment, there will be gain.
Fact: this stock “A” has a buy rating of 2.2 with medium price of 68.00 in one year. It pays dividend for many years at about 4%.
In this case, it appears the resulting change line (Fan Yao) information is correct.
Why is the above technique used?
The standard method of two change line analysis stated: 财爻和子孙同动及财爻与父母同动者,当依卦中的具体情况来参断其吉凶成败. No clear answer can be given if the change lines are a child line and a wealth line.

I will analyze additional examples in the next few months on other events. Thanks to Bradford for his book.

Perhaps this technique can be useful for stock investment analysis.

Disclaimer: Treat this as an academic exercise. Never buy stocks based on Iching reading analysis. There are many financial parameters and statistical parameters and external factors involved. With the wind down of the US tapering program and currency crisis, the opportunity is limited.
 

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