Trading Room – 12 Oct 2018
The sharp selldown has given rise to fears over greed but still most traders will jump back in immediately on cheaper prices. For elite traders who have the benefit of the mPower Algorithm program membership, the market selldown was totally expected.
Here’s the likely scenario for the markets going forward. Global markets are in a rout and its not only Malaysia. US market is just starting a major downtrend while Malaysia is probably in the middle of its downtrend. Same goes for most Asian markets (China, HK, Asean, etc) and Europe ( in the middle of one).
So what is the key strategy you have to understand here?
Is the KLCI in a downtrend mode or a full-blown bear market? You need to know the downside targets for the KLCI and how low can it go from here. Likewise, how low can the US market go? Focus on these key levels highlighted in the mPower Algorithm for elite traders will act at these levels.
There is, however, another bigger problem for second and third liners. As highlighted in the report, you got to use another different strategy for stocks in these categories.
Long-term investors may still benefit from holding selected Model Portfolio stocks under the mPower Trading Program (even in a down-trending market) and averaging at key levels recommended by our elite Hunting Sheet. Read and use this exact strategy in the mPower Algorithm.
It has to be remembered that the Master Algorithm used by us is an analysis of millions of data and all asset classes and mPower Algorithm subscribers get the benefit of the Master Algorithm as well.
Most mPower traders would have escape the market rout and flush with cash now and its a good feeling to see you can buy back cheap what you have sold and make another round of gains.
However, is it too early to buy cheap stocks yet? What is cheap can be cheaper and bounces are not likely sustainable and may turn out to be bull traps. Follow the guidelines in the mPower report.
The market sell-down globally and locally is presenting tremendous opportunities for us as the Algorithm tools work very well in volatile markets. For now, mPower elite traders need to preserve their cash and be ready to put it to work in the future.
There are great opportunities for aggressive traders. Conservative traders may need to stay aside first.