The Good Bad and Ugly weekly review : 22 Apr 2022

Performance Update

Markets continued to stay on bearish trajectory that started on 5th Apr 2022. This week saw 3 red & 2 green trading sessions and lost about (-1.74%) from previous week’s close. All benchmark indices lost between (-1.2%) to (-1.7%).

As you can se from the blue bar above, Nifty has stayed absolutely flat yielding 0% since 01 Sep 2022 which is 6 and half months of choppiness with volatility. We have also witnessed Higher Lows being made from All Time High achieved in Oct 2021 and looks like we will need some positive cues to cross and go beyond resistance zone of 18000. Increasing crude oil prices , high inflation numbers , war uncertainty and few other factors seem to be an impediment for seeing uptrends. US 10Y Yields have been on a continuous rise from 0.5% in Aug 2020 to 2.9% Today (22 Apr 2022) which may not augur well for the markets.

Amongst the sectors, AUTO , ENERGY , PSE & INFRA did well with positive returns. ENERGY particularly has been on a great up-trend clocking a fantastic 14% in the last 30 days. IT has continued to remain bearish losing (-5.6%) this week and (-10.1%) in the last 30 days. Most WeekendInvesting strategies had a dull week barring Mi 25 which returned (+2.79%). This strategy has been on a roll in the last 30 days as well with (11.75%) gains. So far , we seem to be off to a reasonable start in FY 23 and hope to do well in the times to come. The performance is tabulated below.

FY 2022 Performance Report

You may also read the full report here.

A SHORT COURSE to Help you Stay Calm in All Market Conditions

Usually, quick – sharp corrections amidst a Bull Run creates ambiguity in the minds of lots of new investors. The most important questions we often get asked is whether markets will crash from here ? Should we exit ? and few other questions like these. We have made several videos to help you clarify many such questions and help you have the RIGHT MINDSET for a rewarding journey in investing.

We have put together a few of our previous Daily Bytes which we think might be relevant for times like these. Do have a look and send us your thoughts, questions or comments if any.

The smallcase products are all LONG ONLY products that invest in various subsegments of the markets but have the momentum theme underlying in all of them. The strategies will pick strong outperforming stocks and remove weak ones once a week (except NNF10 which is monthly rebalanced)

These are all long term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeating this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years it has been shown that much superior CAGR returns are possible than the benchmarks.
FY22 was also superb and I will let the numbers speak for themselves. You may read the Consolidated FY22 report.

Rebalance Update

We give an advance notice here on the upcoming changes in your smallcase for Monday . This advance notice can be used to ignore Monday update if there is no change. If there is a change indicated you can use the smallcase app or login to weekendinvesting.smallcase.com to see the rebalance. A back up email is sent by mid day Monday if you have not rebalanced by then and yet another one a day later.

Note : We are not including LIQUIDBEES as an ADD or an EXIT count.

The performance for the week and the month for all the smallcases is presented below.

Large & Mid Cap Strategies – Performance

Mid & Smallcap Strategies – Performance

Smallcap Based Strategies

All Cap Based Strategies – Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there.! The several videos in this blog are from this series.

STAIRS Revamped Models

We have launched revamped versions of our STAIRS models and we had made a video giving you a basic introduction to the models.

STAIRS is a LONG / SHORT derivative strategy that is designed to offer an uncorrelated diversification option to your equity portfolio. STAIRS will do well when there are up trends & also when there are down trends while giving up some of the gains when markets remain rangebound / volatile.

The above image shows how Nifty has traded in the current Calendar Year between 01 Jan 2022 and 22 Apr 2022 (a period of 3 & 3 quarters). If you look at the net returns, Nifty has returned a negative (-1%) in this period. But if you notice from the above image, we have had some good trends both on the upside & downside which is exactly what STAIRS sets out to capture. Basically we make money when markets trend upwards , also make money when markets trend downwards & give up some gains & protect capital with strict position sizing rules when markets trend side ways with volatile choppy moves.

During the same period – STAIRS Options AIT model is up (+32%), STAIRS Options EXP model is up (+37%) , STAIRS Options BUY model is up (+107%) & STAIRS FUT model is up (+25.4%).
You may have a look at the detailed past performances here & also access the live performance of the models from the STAIRS HUB.

All 4 models go in line with our fundamental philosophy of making the most and compounding aggressively when markets give us trends and go very defensive as trends fizzle out and enter a rangebound territory thus providing a robust capital & profit protection.

Effectively – STAIRS is a complete trading system (Futures & Options) that covers each of the following decisions required for a successful trading outcome:

• Markets – What to buy or sell ?

• Position Sizing – How much to buy or sell ?

• Entries – When to buy or sell ?

• Stops – When to get out of a losing position ?

• Exits – When to get out of a winning position ?

STAIRS Weekly Performance Update – 21 Apr 2022

If you wish to subscribe – please use this link below or you may write to us at support@weekendinvesting.com in case of any queries.

We also run a dedicated telegram channel for STAIRS which you may join using the link below.

Testimonials

This is all for this week. Please stay safe and we shall meet again next week. Bye !