Trading Room – 17th Oct 2018
U.S. Stocks rose sharply on Tuesday after the release of strong quarterly results from
some of the largest U.S. companies helped the market recover from last week’s
The Dow Jones Industrial Average surged 547.87 points to 25,798.42, with United
Health outperforming. The S&P 500 gained 2.1 percent to 2,809.92 as the tech and
health care sectors jumped more than 2.5 percent each.
The Nasdaq Composite advanced 2.9 percent to 7,645.49. The major large-cap
indexes all had their best day since March. The Russell 2000 index, which tracks
small-cap stocks, jumped 2.8 percent and had its best day since Nov. 9, 2016.
For the common trader, this type of news would be confusing as the US market
had just fall steeply over 1400 points in two sessions last week. And bearish
sentiments were in the air and yet, the US markets rebounded strongly yesterday.
For elite traders, the answer lies in the context of the rise and the assumption
to the trading plan. You must know the 2 critical levels at which the bulls and bears
will take over against each other as highlighted in the mPower Report.
Knowing these two levels would enable us to gauge the extent of the health
of the US market in the context of its steep fall last week and the trading plan
assumption of a downtrend still in force.
What about the health of the Asian markets and the local market? What trading
plan and exposure should you adopt? The mPower Algorithm analyses millions of
data and we are confident and comfortable that the markets are actually
favoring this trading plan for the elite traders and we are flexible to know
when we should change the plan.
Don’t get confused by daily news headlines. Tomorrow there will be another
conflicting news story to explain market movements, which will be enough to
make any grown adult (trader) cry in confusion.