Posted on

Critical juncture for markets

It is often said that an elite trader needs to know two critical
skills – the art of making money (the reward part) – and also the
art of not losing money (the risk part).

These two equation parts need to be balanced at all times and
there will be times when one needs to allocate more to one side
that the other.

While we always keep the risk part as the pre-dominating part
of the equation due to market being an uncertain enviroment,
a trader cannot just keep to complete safety all the times
as he also needs to make money (whether on absolute or
relative basis).

The markets worldwide are at a critical juncture and traders should
not be on the wrong side. The Mpower Report clearly explains
why taking a wrong bet now could be quite painful and what
could be done by traders to manage the situation.

The return of volatility is welcomed by us as traders should thrive
on volatility but you need to get the timing and level right or else
the outcome could be painful.

What stocks and sectors should you really be holding at this stage?
Two sectors have been the big winners which are the technology
and oil and gas sectors.

Should you hold on to your profits or start getting out? Follow the
guidelines in the MPower Algorithm report and the clue is the US market
development. Which way are they really heading?

A look at the local market indices, sectors and global markets tracked
by the Master Algorithm showed that they are aligning. Traders should
not ignore this major signal coming out at your peril and should be
prepared to act immediately as outlined in the report.