Invest Without Emotions
It was a good week for our portfolio algorithms. While the NIFTY went up by 1.83% for the week, our portfolio was up 3.13%. Not bad, given that it had a +3 handle last week as well.
We remain focused on the process:
Talk to us about our Quantitative Portfolio Strategy Execution.
The StockViz reference portfolio we introduced last week is coming along nicely. The algorithm trimmed quite a few line-items and consolidated around eight stocks. 
Given NIFTY’s +1.00% for last week, the managed portfolio returned +3.00%.
More than the returns, the portfolio is managed by an algorithm, making the process
Talk to us about our Quantitative Portfolio Strategy Execution.
You can view a chart of the VIX just as you can for any stock or index. Just go to the VIX page, add some moving averages, maybe even Bollinger Bands and RSI indicators and you are on your way. However, just because you can chart the VIX just like a stock, doesn’t mean you should actually read the chart just like a stock.
Charts for stocks and indices actually represent buying and selling over specific timeframes. Stocks gap up and down. Gaps get filled. Old resistance points can become new support levels, etc. However, VIX is not a stock. India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. Hence, price points for the VIX doesn’t correspond to potential profits and losses of actual trades based on those levels. Support and resistance and trend lines and momentum effects all depend on the existence of buyers and sellers in the asset being analyzed. But you can’t trade VIX directly, so the VIX can never find “support” because no one previously bought VIX “shares” at that price level. VIX is, at best, an indicator of market expectation of volatility.
However, there are a few useful analysis you could run on VIX, given its tendency towards mean-reversion. Bollinger Bands and moving averages could help you gauge the band within which VIX is oscillating. Longer-term charts could help surface seasonal patterns. StockViz India VIX Charts are another tool in the arsenal for investors to help them make better decisions.
Santa Claus, aka Saint Nicholas, is a figure with legendary, mythical,historical and folkloric origins who, in many western cultures, is said to bring gifts to the homes of the good children during the late evening and overnight hours of Christmas Eve, December 24.
Given that overall population grew from 300,000,000 in 1 A.D. to 6,215,000,000 in 2011, that’s a lot of gifts to be bought even though the proportion of good children showed a markedly negative trend during the same period.
How does Santa, with no known source of income and subsisting on a one-in-a-year binge of milk and cookies, afford all those gifts?
Santa must be following our term-specific algorithmically generated equity and option ideas to turn his meager income into a well of wealth.
Gift someone you love a StockViz Demat account today!
We ramped a reference portfolio this week using our proprietary algorithms. The goal is to generate absolute returns by investing in a portfolio comprised of the 100 most liquid stocks in the National Stock Exchange, rebalanced daily. Here’s a sneak preview. More later.
