Every week I send the weekly trend for the Indian sectors. Last few posts are 21 Jan , 14 Jan. These trends are of medium term time frame traders.
The main points in the report are Current trend with last 2 weeks of trend and the price change this week and last week.
The trend is defined as the color which could be
· Lev Buy --> Leverage Buy: Higher than 125% exposure
· Buy --> Normal Buy Normal exposure to 100%
· Neutral --> No trend On side lines
· Sell --> Bearish Trend Exposure to 100% on sell side
· Lev Sell --> Leverage Sell Trade with > 125% exposure
The Lev Buy and Lev Sell becomes Higher conviction if is repeats for two consecutive week.
The combined trend is called as color of the week for sector.
Example of the recent color view of sectors.
· The changes are few per week as once we get a trend it generally last for more than 2 -3 months. The recent changes are highlighted in yellow.
· The high conviction sell are Infra, Realty, Cap Goods and other indices which have been in Lev Sell mode.
· The high conviction buy are IT and Teck Index which are in Lev buy mode for more than last 3 weeks.
· Also notice the price change for last 2 weeks. This adds as confirmation that the price is also following the asset allocation for sectors.
The main idea of this report is to take stock of various indices on weekly basis and then allocate the money. If someone wants to trade short then the Lev Sell and Sell index compositions are better sell candidates.
This is my way of quantifying trend on weekly basis. Do let me know if we can improve any further.
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