Tuesday, July 22, 2014

ABC Screens


These are my ABC screens. Above, the stocks are arranged according to their % gain in the A screen. Below they are arranged according to their % gain in the B screen. Similarly at the bottom is the C screen. 



The idea is to track the CNX 500 stocks on 3 time frames. Base date for Screen A is 31 Dec 2012. Base date for screen B is 31-12-2013. Screen C is for short term (3-4 months) and currently I'm using 30 April 2014 as the base date for screen C. 

As you maybe aware this is basically a top down approach which I use for stock selection - find the leading sectors and then find the leading stocks within those sectors. These screens are updated once a week and gives a very good idea on which stocks are moving up and down the ladder on 3 time frames. SPMM members receive these screens and other scans every week. 

Sunday, July 20, 2014

7400 Holds


Last week we had a rather rare engulfing bar formation on the weekly charts but the support around the extreme lower end around 7440 worked well. Besides, when everybody in town knows about the engulfing pattern then the chances of it working out are slim.

Sector Performance



Saturday, July 12, 2014

SPMM is One Year Old

Stock Picks and Market Monitor was launched last year. If you want to do delivery based stock trading then SPMM is the way to go. As you may be aware, SPMM is based on a top down approach and relative strength for stock selection. Read this FAQ on it. New membership is now open. Drop me a line and join before 31st July to get a nice discount!

Sector Performance


Capital Goods is the biggest loser at 10% week over week. FMCG and IT have gained this week while Health Care was just down by 0.8%

Breadth


Here are the updated plots of ad ratio. The plot above is from 2012 to date and the one below shows you the recent action:



The breadth was never able to pick up and was showing negative divergence after the election results. Besides, a reading of over 2.0 was never seen before in the recent years. The normal range is like 0.4 to around 1.6

Friday, July 11, 2014

Extreme End


This is a weekly chart from January this year. Post the election results on 16th May, Nifty has been struggling to go higher but without any success. A last attempt to break over the 7800 mark also failed and the week ended 3.8% down and a bearish engulfing bar after a long time. There is a small support around the lower end of the range at around 7440 and obviously if that breaks then there is gonna be some more selling.

Relative Strength


The defensive sectors like FMCG and Health Care are up along with IT while all the others have taken a hit. Today the Nifty index broke below the 7500 mark.

Sunday, July 6, 2014

May Picks


On 18th May I had these picks. Above is a screenshot of the actual post. The first two have done very well. Below is how these stocks look now: