iCharts Discussions

SwingTrader · Posted: Mon Aug 28, 2006 8:17 pm Post subject: No Market Leaders

I was just running few stock scans and realised that the current market doesn't seem to have any strong/important leaders at all. Out of the top 100 leading stocks in the current market only 7 stocks are from NIFTY, JUNIOR & CNX200 (Midcaps). Now think about that - out of top 100 current stocks (as measured by last 21 day price % change) only 7 are large/midcaps, which means the majority are small cap.

If I take 63 day price % change into consideration instead of 21 day % change there are 31 stocks from NIFTY/JUNIOR/CNX200. Small caps still lead.

I don't have old statistics (I am planning to build that too), but it would be interesting to look at what happened during the previous rallies and to confirm if large/midcaps were leading at that time or not.

--SwingTrader

CreditViolet · White Belt Joined: 22 Aug 2006 Posts: 24

Hi ST

Good Points..

The current rally has been more in an 'Automatic Mode' after the crash and in my experience stock/sector rotation tends to happen as the rally progresses...

Sectoral/Index Correlation and Rotation is a very productive field to study Smile

CV

SwingTrader · Posted: Wed Aug 30, 2006 3:50 pm Post subject:

Thanks for your reply. Yes, sector rotation explains it. I should probably look into it more.

--SwingTrader