Monday, September 1, 2014

Latest Wave Count


Here is the updated wave count. According to me we are in the 55th wave! WTF! that's a Fibo number! OMG! Something sure is gonna happen now.  Please correct me if I'm wrong because we can always change the count tomorrow. What say?

btw, you can download my book - New Insights to EW.


Nifty - 1000 to 8000


Today Nifty broke above the 8000 mark! Here is a monthly plot showing the 1k to 8k journey.

Saturday, August 30, 2014

Sector Performance / Breadth


Here's the sector performance for this week. The short and intermediate term breadth has dropped but is still above 50%:


Below is Nifty weekly plot - ready to break 8000!


Thursday, August 28, 2014

How I Use the ABC Screens

The ABC screens basically rank all the cnx 500 stocks according to their % gains on three time frames. Screen A lines up all the stocks according to their performance as on 31 December 2012. Screen B does the same from 31 December 2013 and the screen C tracks the short term performance say for 3-4 months and currently I'm using 31 May 2014 as the base date.

The underlying concept behind my stock selection the top down approach - keep tracking out performing sectors and the out performing stocks and these top 50 or so stocks from the A and B screens will offer plenty of opportunities going ahead.

Having filtered out the strong stocks in this way the only thing remains to be done is the actual stock selection. A stock which is above both the 50 and 200 day averages is preferred over a stock which is  say above the 200 but below the 50. Secondly the stock should not be too far up from the 50 day average. If it is then it is better to wait for a pullback towards the 50.

These are the general guidelines if you want to follow this method but you are free to experiment around this concept and then do whatever suits you.

A & B Screens



Above are my A and B screens. Below is Sonata Software the 3rd top stock on the A screen:


Sector Relative Strength


Almost all the sectors have ended up flat. Only FMCG and Health Care have turned up relative to the benchmark Sensex. Sectors to avoid are Metals and Real Estate since their RS lines are dropping fast. 

June Picks


Above is a screen shot of my stock selection for SPMM on 21 June. These were from my B screen. FSL and Mercator have not done well but the other two have - Sonata is now at 109 (39%) and Finolex Cables is at around 220 (32%).

Wednesday, August 27, 2014

Breadth


The breadth has started to pick up again and the Nifty is now ready to break 8k.