Archive for January 31st, 2010

Channels.India – Early economic – Elliott and performance cycles

SUMMARY: HDFC DAILY (HDFC) Prices bounce back from key FIB supports near 2,300 levels. Performance cycles are bottoming and suggest further outperformance of HDFC in the weeks ahead. HDFC BANK DAILY (HDBK) Sub key 1,600 we continue to look lower till key 1,450 levels in the (c)/(iii) wave down. Performance cycles are also heading to a performance bottom. ICICI BANK DAILY (ICBK) Our preferred scenario sees this as a complex corrective structure down. The (y) wave down could extend lower till key supports at psychological 700. The bottoming of the performance cycles is also in sync with this view. STATE BANK OF INDIA DAILY (SBI) Prices continue to hold key FIB and trend channel supports at 1,950 levels. We need a clear break here to continue to look lower. Performance cycles are heading to a performance bottom. UNITECH DAILY (UNTE) We need a clear break sub key 64 levels to continue to look lower in the (c)/(iii) wave down. Performance cycles are bottoming and suggest further outperformance of Unitech in the weeks ahead.

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‘Performance cycles’ is a term coined by Orpheus Capitals. This is another name for time triads, time arbitrage, time fractals but expressed in terms of relative performance. It’s a bounded oscillator that moves from 1 to 30. 1 is top relative performance and 30 is worst performance. The idea is that performance is cyclical. A top performer will underperform in future and vice versa. A top relative performer is also the worst value pick and the top relative underperformer is the best value pick.

CHANNELS.INDIA is our second perspective product published on MONDAY, WEDNESDAY and FRIDAY. The report uses conventional technical tools and covers most top traded stocks. The report illustrates key price levels, price targets, price projections and time turn windows. WAVES.INDIA, CHANNELS.INDIA are bundled together as PERSPECTIVE products. Unlike WAVES which focuses more on blue chips, CHANNELS covers the other mid cap and small cap stocks also. CHANNELS.INDIA carries the Early Economic cycle sector components, which includes FINANCIAL and DISCRETIONARY sector stocks, the Mid Economics cycles sector which includes INDUSTRIAL sector stocks and the Late Economic Sector cycle including ENERGY, STAPLES, UTILITIES, PHARMA, CHEMICALS sector stocks. REUTERS EARLY ECONOMIC RICS DLF.NS, HDFC.NS, HDBK.NS, ICBK.NS, SBI.NS, INFY.NS, TCS.NS, MAHM.NS, UNTE.NS, TITN.NS REUTERS MID ECONOMIC RICS ASOK.NS, TAMO.NS, CROM.NS, BHEL.NS, LART.NS, MTNL.NS, IDEA.NS, BRTI.NS, RLCM.NS, TATA.NS REUTERS LATE ECONOMIC RICS ONGC.NS, RLIN.NS, NTPC.NS, ACC.NS, HALC.NS, TISC.NS, ABUJ.NS, CIPL.NS, RANB.NS, ITC.NS

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Alpha.metals – copper hits a performance top and delivers 6% against gold

The copper performance cycle topped as the metal ended its outperformance run against gold and reversed. The pair registered 6% last week (long gold – short copper). Copper, Zinc, Palladium performance cycles have already topped. Silver, Nickel, Uranium performance cycles have turned up. On the pair side long silver – short copper should signal soon. The other pairs running currently are long silver – short gold, long gold – short palladium and long uranium – short gold.

ALPHA is a pair trading, long only – short only strategy and numeric ranking product based on TIME fractals. Time arbitrage, Time Triads, Time fractals are terms coined by Orpheus Research. The signals are carried over three different time frames viz. sub minor (2-3 days), minor (10-30 days) and intermediate (above 30 days). This is a daily signal product. The signals will be illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. This is a part of the time triads analytics developed by Orpheus Research.

METALS: STEEL, ZINC, NICKEL, TIN, ALUMINIUM, URANIUM, GOLD, SILVER, LEAD

STOP LOSS AND EXITS are activated at 2%

Please feel free to mail us for any clarifications. *This is a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager to execute these pairs. For more details please subscribe to the ORPHEUS TIME ANALYTICS research products.

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Solving the Holyhedron

A holyhedron is a polyhedron with each face containing at least one polygon shaped hole. The boundaries of the holes share no point with each other or the boundary of the faces. For example, consider a solid cube with its 6 faces. Next, imagine thrusting a pentagonal rod through 1 face, all the way through the cube to the other side to produce (for example) a pentagonal tunnel, and only 2 of those 11 faces have holes punched in them. Each time we punch a hole, we are creating more faces. The immense challenge to finding a holyhedron is to make the holes such that they eventually punch through more than one face to reduce the number of faces that have no holes.

The holyhedron concept was first introduced by Princeton mathematician John h Conway in the 1990′s, who offered a prize of &10,000 to anyone who could find such an object. He also stipulated that this cash reward would be divided by the number of faces in such an object. In 1997, David W Wilson coined the word holyhedron to indicate a hole filled polyhedron.

Finally, in 1999, American mathematician Jade P. Vinson discovered the world’s first holyhedron specimen with a total of 78,585,627 faces. John Conway has offered a prize of $10000 divided by the number of faces, so this one should be worth approximately $20.3252.

(The Math book, Clifford A. Pickover, PhD Yale)

Domnita and me are a part of Cluj painting club. Last evening we were at the 5 year anniversary. We as capital market researchers don’t make the group as diverse as Dr. S. Istvan. 75 paintings were exhibited. The one above was painted by Istvan. When I saw it, I told him it was a holyhedron. It might look like coincidence but the mathematics we know is a lot about patterns and structures. If there is something mathematical, you will find it in nature. This is why John’s prize money was up for grabs, the moment it was announced. Why is nature mathematical? Because nature is proportional. Nature has all proportions, infinitesimally large and infinitesimally small. Time does not destroy the proportion of nature, even when nature ages, grows and decays. Then why no credit for Time in assisting nature to retain its proportion? Does it not sound intuitive that because Time is proportional, nature mirrors it and mathematics proves it. Time created nature and humans invented mathematics to study and solve the beautiful holyhedron.

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