Category: Your Money

Spotted: Some Golden Crossings!

golden cross • swirl

Image by origamidon via Flickr

The January rally has sprouted some Golden Crosses that investors should take note. A Golden Cross is when the 50-day moving average edges atop its 200-day moving average. It indicates that the intermediate-term uptrend has overtaken the longer-term trend. Here are some stocks that formed the Golden Cross the past month: CAIRN, PIRHEALTH, TATACOMM, WIPRO.

The GC marks the spot when a bounce within a bear market transitions to a bull market. All sustained bull markets, by definition, come with the 50 DMA above the 200 DMA.

It looks like the NIFTY has some ways to go before the cross, so its not time yet to break out the champagne. However, Hang Seng index (tracked by the HNGSNGBEES) seems to have crossed over to the bull camp.

Go Bulls!

High-Frequency Trading is Hitting the BRICs

in India, the BBC noted that nearly a quarter of all trading is now done using algorithms, a number that’s virtually assured of an exponential jump as well. The Bombay Stock Exchange, a $1.5 trillion marketplace, said it expects such trading to double over the next three years, which would put that nation on par with Europe and the U.S.

via High-Frequency Trading is Hitting the BRICs – Advanced Trading.

Sunder’s List

The US is expected to grow only 1.1% in 2013, says Congressional Body. (BK)

Low cost of debt (ZIRP) encourages substitution of labour with capital in the production process. Given that 60-70% of activity in developed economies is driven by consumption, this shift reduces aggregate demand as employment and income levels decrease. (FT)

Yale’s Swensen: Index Funds Best Plan for Most (Bloomberg.) May I suggest NIFTYBEES and JUNIORBEES?

Scary European unemployment chart du jour:

And a must see infographic.

Month Ender

What a January! One of the few in recent memory that ended up. NIFTY up a solid 11.2%, the Jr. NIFTY up 17% and Banks outperformed coming in at 25%

Major drivers were Greece, stabilizing inflation and RBI’s CRR cut. RelCap got a boost with Nippon Live pumping in close to Rs. 1,500 crores, SUZLON announced Rs. 2,000 crores in orders and the market seems to have shrugged off India Bulls Real Estate’s Q3 net being down 45%

The biggest winners were:

SYMBOL Change %
IVRCLINFRA 77%
NCC 68%
LITL 58%
RELINFRA 56%
ANANTRAJ 53%
SUZLON 53%
RELCAPITAL 53%
IBREALEST 51%

And the few losers of note were:

SYMBOL Change %
GLAXO -1%
COREEDUTEC -1%
M&M -2%
TCS -2%
HEROMOTOCO -3%
GAIL -3%
BIOCON -4%
DABUR -5%
HINDUNILVR -7%
Good luck for February!