In an online meeting with some of our constituents trading both currency and stocks in Asia and the US; we were asked how do we manage to find certain market conditions that has distinct trade setups in trading the market. Particularly now that skeptic traders have finally realized that a declining stock and US Dollar trend have made its point.
The first answer is why it takes too long to accept that certain market forces can change even before any turning point can be reflected on the chart formation. This can be attributed towards most technical trading orientation and practices traders tend to follow once a resistance / support price level would be broken through price action.
Market conditions in global stocks have followed a bearish contagion since the start of the 3rd quarter this 2015. The correlation of the Dow Jones, US Dollar directly and indirectly comparing the indices with the price action of the Philippine Stock Exchange Index which have been associated with is a strategic plan well worth checking especially for Asian / US Asian investors involved in the financial markets. Not all traders present during our online meeting have had the opportunity to arbitrage trade positions in Manila in other markets; so to speak, As most traders either tend to hold individual company stocks or run a day-trade which obviously are on the red by these current moves since touching the 8100 levels of the PSEI.
What we do emphasize is that to arbitrarily hedge their total portfolio amount or funds traded correspondingly by using available trade positions in the US markets through foreign affiliated and licensed broker firms that carries an indirect/ direct link to the Philippine stock exchange index. It maybe a complex process for most without the proper training and introduction to the right financial instruments including strategies correlated with the major stocks traded in the local stock market in the Philippines. But there are methods of doing so that will be an advantage or at least minimize unnecessary losses. With the current decline seen with the Dow nearing the 17K mark, the PSEI well below the 7500 is on its way lower below the 7000 support mark in the near term. With a market holiday expected traders would now have to wait for the following week to be able to cover long positions or simply exit their long waited positions at a loss.
Strategies are open to all who simply try to do their due diligence in market research. Where and how to implement these trade plans are within reach is of course is the next step in keeping pace with portfolio / investment modernization.
For more information, email us at info@megatrade101.com
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