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Portfolio – How to trade the FBM KLCI 30 stocks?

Trading room – Thu 22 Nov 2018


Bursa Malaysia was the worst performer among the key Asian markets yesterday as the selling of banks and companies like Axiata and Genting Bhd dragged the FBM KLCI deeper into the red.

The Dow Jones Industrial Average closed Wednesday’s session just below the flatline, erasing a 200-point jump, as shares of Apple failed to hold on to strong gains from earlier in the day.

Meanwhile, Asian stocks are mixed but at least a few markets here are likely to resume their dominant trend soon.

Locally, it was reported by a media outlet that investors stayed cautious in the absence of any strong positive leads and the 30-stock FBM KLCI stayed in the red throughout the whole day as the index fell below the psychologically important 1,700 level.

However, as elite traders know, the reported news and reasons are not the main criteria to determine the market direction but the actual perception of the news and reasons by the market participants is actually the real key factor.

The current sentiment on Bursa Malaysia is not limited domestically but rather it’s a global sentiment as markets are all moving in the same direction.

Hence, the sentiment on the US, Europe, and Asian markets are moving in synchronization at key market turns.

This means one is not likely to accurately forecast the FBM KLCI direction without an understanding of how the major global markets are going to move in the weeks ahead. And it’s obvious key markets like the US and China are now at critical crossroads and the main trend is now taking hold in these markets.

The main question is where exactly the weakness in the current FBM KLCI will end and will it end exactly at the same time as the weakness in the global markets?

And if it rebounds, which component stocks are likely to lead the charge and if it falters, which KLCI stocks you definitely need to avoid in your portfolio?

Using big data analytics and algorithm, the outlook of each of the KLCI stocks is clearly seen and tracked by us and the outlook for each stock clearly indicates where the whole FBM KLCI index is likely to be moving going forward.

When each stock passes their critical levels, we know in advance which will be the market leaders and which will be the market laggards in the next phase of the market.

There are two key levels which are likely to end its decline and together with several high-probability time projections, and when they meet in confluence, we can confidently project in advance that the market will likely end its decline at this approximate price and date in the future.  

When the above projection is matched with the same analysis for the global markets, the projection becomes, even more, crystal clear and the probabilities are enhanced several folds.

Traders and institutional portfolio funds should use these high-probability projections in advance to plan their portfolio selections and management. Do not trade blindly or second-guess the market based on each conflicting media or analysts’ headlines.

As most elite traders know, advance price and timing are everything in the market, not the past news.

Join and network with us at our mPower Algorithm and mPower Trading programs and decide whether our analysis of the entire market breadth and depth can help you in your trading and portfolio management.


Note: Certain info presented in the tables above has been redacted to comply with the agreement with elite members of the mPower Algorithm program and mPower Trading program and certain institutional clients. The above analysis reflects our personal view only and is subject to terms of use. Please refer to the full report inside for the complete info.