Index Update 25.04.2015

MOMENTUM

We run our proprietary momentum scoring algorithm on indices just like we do on stocks. You can use the momentum scores of sub-indices to get a sense for which sectors have the wind on their backs and those that are facing headwinds.

Traders can pick their longs in sectors with high short-term momentum and their shorts in sectors with low momentum. Investors can use the longer lookback scores to position themselves using our re-factored index Themes.

You can see how the momentum algorithm has performed on individual stocks here.

Here are the best and the worst sub-indices:

Refactored Index Performance

50-day performance, from February 10, 2015 through April 24, 2015:

Equally Weighted		Market Cap. Weighted
CNX FMCG (EQUAL)	+5.98%	CNX INFRA (CAP)	+4.81%
CNX MNC (EQUAL)	+2.47%	CNX PHARMA (CAP)	+1.98%
CNX INFRA (EQUAL)	+1.31%	CNX MNC (CAP)	+1.22%
CNX CONSUMPTION (EQUAL)	+0.14%	LIX15 Midcap (CAP)	+0.64%
CNX AUTO (EQUAL)	+0.09%	CNX CONSUMPTION (CAP)	-0.74%
CNX ENERGY (EQUAL)	+0.03%	CNX METAL (CAP)	-1.41%
LIX15 Midcap (EQUAL)	-0.25%	CNX FMCG (CAP)	-1.56%
NI15 (EQUAL)	-0.73%	CNX ENERGY (CAP)	-1.67%
CNX PSE (EQUAL)	-0.88%	CNX AUTO (CAP)	-1.82%
CNX IT (EQUAL)	-1.51%	CNX PSE (CAP)	-1.88%
CNX COMMODITIES (EQUAL)	-2.32%	CNX COMMODITIES (CAP)	-2.07%
CNX FINANCE (EQUAL)	-2.52%	CNX FINANCE (CAP)	-3.29%
CPSE INDEX (EQUAL)	-2.52%	NI15 (CAP)	-3.47%
CNX SERVICE (EQUAL)	-2.69%	CNX SERVICE (CAP)	-3.89%
CNX BANK (EQUAL)	-3.56%	CNX BANK (CAP)	-4.04%
NV20 (EQUAL)	-3.59%	LIX 15 (CAP)	-4.56%
CNX PHARMA (EQUAL)	-3.80%	CNX PSU BANK (CAP)	-4.59%
LIX 15 (EQUAL)	-3.86%	NV20 (CAP)	-4.71%
CNX MEDIA (EQUAL)	-4.14%	CPSE INDEX (CAP)	-4.96%
CNX METAL (EQUAL)	-5.45%	CNX MEDIA (CAP)	-7.68%
CNX PSU BANK (EQUAL)	-5.83%	CNX REALTY (CAP)	-8.07%
CNX REALTY (EQUAL)	-7.39%	CNX IT (CAP)	-8.24%

Trend Model Summary

Index	Signal	% From Peak	Day of Peak
CNX AUTO	SHORT	10.28	2015-Jan-27
CNX BANK	SHORT	12.42	2015-Jan-27
CNX ENERGY	SHORT	29.16	2008-Jan-14
CNX FMCG	SHORT	7.58	2015-Feb-25
CNX INFRA	SHORT	48.62	2008-Jan-09
CNX MEDIA	SHORT	28.84	2008-Jan-04
CNX METAL	SHORT	55.32	2008-Jan-04
CNX MNC	SHORT	6.69	2015-Mar-12
CNX NIFTY	SHORT	7.68	2015-Mar-03
CNX PHARMA	SHORT	11.72	2015-Apr-08
CNX PSE	SHORT	25.79	2008-Jan-04

ENERGY, INFRA, MEDIA, METAL and PSE sub-indices are well below their 2008 boom-era heights. Banks and Pharma have been badly hit this year. Will MNCs provide cover?
Our trend model is short on all indices right now, probably indicating that the market is over-sold…