By Waves Strategy Advisors, For more information visit www.wavesstrategy.com
Sensex in terms of INR does not represent how Indian markets have fared in terms of real money.
Currency is printed by the country’s central bank, which is backed by bonds and other debt instruments and might not necessarily represent the correct value. It therefore becomes necessary to see how stock market has been doing in terms of real money which is GOLD. Sensexin terms of Gold shown below needs little explanation.
Sensex in Gold:
The above chart clearly represents that Indian markets topped out in November 2007 itself whereas the actual index shows a topping action in January 2012. Since then Sensex has been way below its life time highs and so are majority of the stocks. Even when actual Sensex recently touched 4 year’s high but many stocks are trading at 52 week’s low. …… Not only that this chart has been following precise Elliott wave counts and pattern.
Time Cycles (shown in actual report): If you remember we have been talking about 69 days time cycles working brilliantly for catching tops and bottoms for short to medium term. Infact, Sensex in GOLD is following ……. days bottoming cycle precisely. And to my surprise as well the bottom comes near ……. This is in sync with currency cycle as well..
Price ROC: is also showing one very important pattern and this indicator should provide leading signal.
The upcoming issue of “The Financial Waves Monthly update” will have indepth analysis onSensex in GOLD and path ahead. To know the short term direction get access to “The Financial Waves Short term update” that has Nifty with 3 stocks and Elliott wave counts. For subscription please visit http://wavesstrategy.com/index.php/store.html
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