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Ahead of the Curve provides analysis and insight into today's global financial markets. The latest news and views from global stock, bond, commodity, and FOREX markets are discussed. Rajveer Rawlin is a PhD and received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher, having followed capital markets in the US and India since 1993. His research interests include capital markets, banking, investment analysis, and portfolio management, and he has over 20 years of experience in the above areas, covering the US and Indian markets. He has several publications in the above areas. He currently teaches business and management students at CHRIST University. The views expressed here are his own and should not be construed as advice to buy or sell securities.

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Sunday, 3 February 2019

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning February 04

Indicator
Weekly Level / Change
Implication for
S & P 500
Implication for Nifty*
S & P 500
2707, 1.57%
Bullish
Bullish
Nifty
10894, 1.05%
Neutral **
Bullish
China Shanghai Index
2618, 0.63%
Bullish
Bullish
Gold
1322, 1.85%
Bullish
Bullish
WTIC Crude
55.26, 2.92%
Bullish
Bullish
Copper
2.77, 1.61%
Bullish
Bullish
Baltic Dry Index
645, -28.73%
Bearish
Bearish
Euro
1.1450, 0.70%
Bullish
Bullish
Dollar/Yen
109.48, 0.01%
Neutral
Neutral
Dow Transports
10124, 2.04%
Bullish
Bullish
High Yield (ETF)
35.17, 0.81%
Bullish
Bullish
US 10 year Bond Yield
2.69%, -2.25%
Bullish
Bullish
Nyse Summation Index
670, 103.83%
Bullish
Neutral
US Vix
16.14, -7.35%
Bullish
Bullish
Skew
126
Neutral
Neutral
20 DMA, S and P 500
2625, Above
Bullish
Neutral
50 DMA, S and P 500
2609, Above
Bullish
Neutral
200 DMA, S and P 500
2742, Below
Bearish
Neutral
20 DMA, Nifty
10821, Above
Neutral
Bullish
50 DMA, Nifty
10788, Above
Neutral
Bullish
200 DMA, Nifty
10845, Above
Neutral
Bullish
India Vix
15.72, -11.14%
Neutral
Bullish
Dollar/Rupee
71.46, 0.74%
Neutral
Bearish


Overall


S & P 500


Nifty

Bullish Indications
13
15
Bearish Indications
2
2
Outlook
Bullish
Bullish
Observation
The S and P 500 and the Nifty rallied last week. Indicators are bullish for the week.
The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon
UK – BOE rate decision, US – GDP, India – RBI rate decision
*Nifty
India’s Benchmark Stock Market Index
Raw Data
Courtesy Google finance, Stock charts, investing.com
**Neutral
Changes less than 0.5% are considered neutral


stock maket signals february 04


The S and P 500 and the Nifty rallied last week. Indicators are bullish for the upcoming week. The market got its oversold bounce of about 350 points but a 5 year bear market is in the making. The trend is changing from bullish to bearish. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. The India vix is finally catching up to the US vix suggesting there may be a sudden catch up on the downside for the Indian market in 2019. A 5 year deflationary wave is about to start in key asset classes like the Euro, stocks and commodities amidst a number of bearish divergences and Hindenburg omens. We are on the verge of a multi-year great depression. Quantitative tightening by the FED is yet to be priced in fully. The markets are still trading well over 3 standard deviations above their long term averages from which corrections usually result. Tail risk has been very high off late. The critical levels to watch for the week are 2720 (up) and 2700 (down) on the S & P 500 and 11000 (up) and 10800 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison. Love your thoughts and feedback.


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