Sunday, March 31, 2013

The Ultimate Momentum Signal - Auto Updated Status

A note to the subscribers: The trading system is being auto-updated now and the same is available towards the end of this page. Since no new posts bearing the updates
 are being published, there will be no email updates also from now on. 
Please visit and check this page for your regular trading system updates.

Your Navigation System to the Nifty Futures and Options

If you have been trading the Nifty Futures and Options without knowing the possible market direction, well let's put it mildly, you are in the wrong direction!

You would know that the market never goes straight anywhere and it's zigzag motions would frustrate even the most experienced traders!

Welcome to the auto- updated status page of The Ultimate Momentum Signal, a position trading system, which could be your navigation system to the zigzag markets. The trading system with it's multidimensional risk management rules acts like a true guide to the discernible traders of Nifty futures and options and ensures their long term survival in the markets. Unlike others, no tall claims are ever made about the system. You are free to check it out!

If you would like to get a copy of the Momentum Signal spreadsheet (non-working of course!) covering a period of eight long years for any experiments or studies by you, a free download is available here.

If you are a new visitor and curious about the trading system, additional information about the system is available in the following pages:  

1. About
2. The Signal
3. Entries and Exits
4. Position Limits

In fact you would certainly benefit a lot by reading the following pages which explains the risks of trading and the long term index fundamentals and index investing. Well, reading these pages may even make you a seasoned trader and  investor!

1. Risk Analysis
2. FAQs
3. Risk Factors
4. Nifty Fundamentals
5. New Auto-Update Table

The following table shows the latest position of The Ultimate Momentum Signal, your navigation system to the Indian stock markets! If you find that the table is a no-show, please reload the page after a short time so that Google drive refreshes the table.

Finally, a small piece of advice too! Trade moderately and that too with small positions! Because trading is an inherently risky business and above all, it is not a hobby!

And the freely accessible online Position Limit Calculator is here to help you to trade moderately with small positions!

Wish you all prosperous trading and investing!


Important notice: Please read the risk factors, terms and conditions and the disclaimer stated on the 'Risk Factors' page of this site and it is deemed and implied that all visitors to this site have read and understood the same.

Nifty Index at 5690 is Equal to 4905

The look back continued....!

The last regular update of The Ultimate Momentum Signal was published on 23rd August 2011 before the stoppage. The data included in that update was for the trading day - 22nd August 2011. If we go back to those days, it is seen that the Nifty index was breaking down from the previous support of 5250 - 5300 levels at that time. Nifty index closed at 4905 as on 22nd August 2011.

Now, let me reproduce the Nifty trailing fundamentals data from that old update. 

 Nifty Trailing Fundamentals  

"The trailing Price Earnings Ratio  ( PE Ratio ), Price to Book Value ( PB Ratio ) and Dividend Yield ( DY Ratio ) of the Nifty Index  were at 17.68, 2.89 and 1.55 respectively as on 22nd August 2011."

And this is what this author opined in the post dated 19th August 2011 about the then Nifty trailing fundamentals.

"This blog had repeated time and again that Nifty valuations were stretched, and now, it seems that market is in the process of clipping the same. As the market has been pricey for a very long stretch of time and most market participants became used to the higher valuations, the present correction may appear to be very deep. However, it remains to be said that the trailing valuations have just fallen to the long term averages now. It is a very simple matter that the long term averages are supposed to be somewhere in the middle of the valuation ranges and therefore, at least for half the period used to calculate the averages, the index valuation have remained below the long term averages. Therefore, there is no such near limit at which the fall may get arrested. But, it is a fact that market has become comparatively safer for long term investors for they can buy at somewhat reasonable prices from now on and this itself may provide a bit of margin of safety and long term upside."  

Now, let me show the present data related to the trailing valuation of the the Nifty index. Here it is!

It doesn't need much effort or analysis to see that the the present day trailing fundamentals of Nifty index, which closed at 5690 as on 28th March 2013, is more or less equal to that of Nifty at 4905 in August 2011.

Now you know reason behind the seemingly absurd claim in the headline of this post; "Nifty Index at 5690 is Equal to 4905"! And this is why, despite the tall claims of impending heavy falls by some analysts, the index isn't going anywhere now a days. But this doesn't mean that the index will not fall further. But any steep falls from these levels will be good opportunities for the long term investors to add the index to their portfolios. 

To know about the long term valuations of the Nifty index please read Nifty Fundas.  

Cheers and Prosperous Investing!!!  

Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information and educational purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy. We do not recommend, promote, endorse or offer any guarantee whatsoever in respect of any services or products offered in the advertisements displayed on the site by Google AdSense.