Weekly Recap: Constraints make us better

world.2014-11-21.2014-11-28

Equities

Major
DAX(DEU) +2.55%
CAC(FRA) +0.99%
UKX(GBR) -0.42%
NKY(JPN) +0.59%
SPX(USA) +0.37%
MINTs
JCI(IDN) +0.74%
INMEX(MEX) -1.56%
NGSEINDX(NGA) +1.82%
XU030(TUR) +3.78%
BRICS
IBOV(BRA) -1.62%
SHCOMP(CHN) +7.88%
NIFTY(IND) +1.31%
INDEXCF(RUS) -0.34%
TOP40(ZAF) -2.31%

Commodities

Energy
Brent Crude Oil -11.89%
Ethanol +2.24%
Heating Oil -9.33%
Natural Gas -5.18%
RBOB Gasoline -10.86%
WTI Crude Oil -12.88%
Metals
Copper -6.84%
Gold 100oz -2.94%
Palladium +2.13%
Platinum -2.27%
Silver 5000oz -4.35%

Currencies

USDEUR:-0.54% USDJPY:+0.68%

MINTs
USDIDR(IDN) +0.49%
USDMXN(MEX) +2.12%
USDNGN(NGA) +0.85%
USDTRY(TUR) -0.07%
BRICS
USDBRL(BRA) +2.15%
USDCNY(CHN) +0.33%
USDINR(IND) +0.42%
USDRUB(RUS) +7.93%
USDZAR(ZAF) +0.91%
Agricultural
Coffee (Arabica) -1.68%
Soybeans -1.86%
Wheat +5.37%
White Sugar -3.37%
Cattle -1.01%
Coffee (Robusta) +1.30%
Corn +0.13%
Lumber -1.11%
Soybean Meal +4.13%
Cocoa +1.48%
Cotton +3.50%
Lean Hogs -0.91%
Feeder Cattle -2.09%
Orange Juice +3.69%
Sugar #11 -3.23%

Credit Indices

Index Change
Markit CDX EM +0.29%
Markit CDX NA HY +1.06%
Markit CDX NA IG -5.64%
Markit iTraxx Asia ex-Japan IG -5.64%
Markit iTraxx Australia -3.11%
Markit iTraxx Europe -4.96%
Markit iTraxx Europe Crossover -34.92%
Markit iTraxx Japan -0.26%
Markit iTraxx SovX Western Europe -1.73%
Markit LCDX (Loan CDS) -0.02%
Markit MCDX (Municipal CDS) -0.97%
The biggest news this week was OPEC’s non-cut and the subsequent collapse in oil prices. The US dollar continued to rally, precious metals weakened and Nigeria devalued their currency…

Nifty Heatmap

CNX NIFTY.2014-11-21.2014-11-28

Index Returns

index performance.2014-11-21.2014-11-28

Sector Performance

sector performance.2014-11-21.2014-11-28

Market Cap Decile Performance

Decile Mkt. Cap. Adv/Decl
1 (micro) -4.81% 65/75
2 -0.79% 67/72
3 -1.80% 63/76
4 -0.72% 62/77
5 -1.35% 66/73
6 -1.30% 67/72
7 -0.84% 70/69
8 -0.55% 66/73
9 +0.95% 72/67
10 (mega) +1.09% 70/70
Large cap outperformed small caps this week…

Top Winners and Losers

HINDALCO +8.58%
HINDPETRO +11.60%
BHEL +12.51%
IDEA -7.79%
CONCOR -6.44%
RCOM -5.46%
OMC’s put in a good show on the back of the OPEC non-cut. Has the cycle finally turned for BHEL?

ETF Performance

PSUBNKBEES +4.22%
BANKBEES +1.97%
NIFTYBEES +1.66%
CPSEETF +1.18%
GOLDBEES +0.48%
JUNIORBEES +0.25%
INFRABEES -0.64%
The financial sector put in a good show in the back of RBI’s new regulations on small and payment banks…

Yield Curve

yield Curve.2014-11-21.2014-11-28

Bond Indices

Sub Index Change in YTM Total Return(%)
GSEC TB +0.07 +0.14%
GSEC SUB 1-3 +0.11 +0.12%
GSEC SUB 3-8 -0.08 +0.31%
GSEC SUB 8 -0.08 +0.87%
Next rate cut is more than priced in at this point. Falling inflation, wavering growth..

Investment Theme Performance

Thought for the weekend

When we create new constraints, we force ourselves to adapt. This, in turn, exercises skills that otherwise might never be tapped. Constraints foster creativity. We have to perform in new ways to adapt to challenging constraints.

Source: Expanding Our Trading by Imposing Constraints