Archive for October 14th, 2012

Weekly Global Indices

Summary

Barring DOW Jones Industrial Average and Dow Jones Latin America 80 Index, all the other 8 top emerging markets and US sectors are running negative. The October-November seasonality seems to be weighing on markets. The important question is how long will it take for markets to emerge out of this negative or stagnation that started just a fortnight ago? We need more than a weekly negativity to change our multiyear secular positive view. And assuming this positive secular view is intact, the top potential outperformers are the ones that are bottoming and doing worst now. These are the Dow Jones BRIC Brazil 15, Dow Jones BRIC China 15, DOW Jones Tiger Titan’s 50 and DOWN Jones BRICK India 15 Index.

Running Signals

This is a running table for the respective Dow Indices. The table explains the price and Jiseki Cycle trend, positive or negative. We have also added relative rankings, which indicate the strongest and the weakest components in the list. The group under study for top US Sector indices and various Emerging Markets has 10 components. The number 10 asset is the top relative outperformer, while the number 1 asset is the worst relative performer for an on-going multi month period.

The table also has quarterly performance rankings. Near to 100 are the best components and near to zero are the worst components. How can you read the positive signals? If both price and Jiseki Performance Cycle trend are positive, we register it as a long signal. The table carries the holding period for this long signal and the returns for that period.

Mukul Pal, is a Chartered Market Technician, MBA Finance and a member of the reputed Market Technicians Association (MTA). He has more than a decade of Capital Market experience dealing with derivatives and global assets. He has worked for Bombay Stock  Exchange, multinational Banks and brokerage houses in leading research positions before starting on his own in 2005. He is the President of the MTA Central and Eastern European Chapter.