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Where are the pockets of strength in the market?

Trading Room – 16th Oct 2018

Some pockets of strength of appearing in some sectors like financial and defensive sectors like rubber gloves and tobacco/beverages. However, the strength is pretty mixed and not broad-based, highlighting the fact that traders need to be stock-pickers in the current weak market to eke outperformance. Continue reading Where are the pockets of strength in the market?

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Rebound expected for the week

Trading Room – 15th Oct 2018

A rebound is expected this week for the Malaysia and global markets within a weak/downtrend market (see the Special Reports in the mPower Algorithm).

Should you participate as a trader in this rebound or should you stay aside? The answer lies in knowing where exactly is this rebound in the entire long term trend of the market in the coming weeks which is explained quite extensively in the mPower Algorithm report. Continue reading Rebound expected for the week

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The Algorithm gives early warning signal

As warned by our Master Algorithm earlier, the local market went into
a sharp correction and the US market also sold off yesterday.
The selldown could be just the beginning (at least for the US market)
and the local market could be only in the middle of its correction.
Conservative traders should stay out of the market while aggressive
traders may pick up stocks on rebound with tight stop loss soon.

Upside however is limited with a clear hit-and-run approach only.

On hindsight for one stock, Telekom, we should have stop out at RM3.18 but
decided to wait until SS RM3.00, which was broken yesterday and
showed that its always unwise not to keep to the Algorithm stop loss.
We remain cash rich overall however thanks to warning from the Algorithm scanning and we prefer to stay on the sidelines first while awaiting cheaper prices to buy back in.






Continue reading The Algorithm gives early warning signal

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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.