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Member's Post – Dollar Index and NR

Mukul Pal · February 19, 2010

I have few doubts regarding the Numeric ranking and performance cyclicality of the individual stocks you suggest in your Time Triads. Firstly, should we consider only the stocks forming the index to do the numeric ranking? Secondly, in the case of under performers is it like you keep watching them under performing, wait for a signal/turnaround before suggesting a buy on them? Pair trading I understand but an individual stock can keep underperforming for an indefinite amount of time right?
Also shown below is my Dollar Index count where you can notice that time taken by the wave-c (during 09-10) is far greater than that taken by the waves a and b together. So will the pattern qualify as a legitimate Irregular Flat? Adding it the so called c-wave appears to be corrective if we go strictly by rules.
So I think that corrective mode of dollar (for the H2 2008 rally)  is still on and we are in some sort of expanding environment wherein dollar index would continue to rally towards 87/88 levels in the coming couple of months and then turn weak towards 72 levels subsequently.
Wave structure of Indian rupee also looks deceptive (majority being bearish/depreciation) and I guess 42 would be a good target in the coming months.

Raghu

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