Declassified: CROSS Rates Overlay Trade & Stock Investing Strategy
As for the PSEI, we made mention that the 1st quarter into the 2017 would still playout lower for the
PSEI as it revisited 7185 from the previous two weeks. The recent price recovery from end of December 2016 (which a lot of market participants may or may not have forgotten) how the market declined from the
PSEI 2nd highs at 8116 towards the 6499 levels. The first two (2) weeks of January was indeed a good price recovery back towards the 7400 which failed and moved back lower at 7235 as of the trading week ending Feb 10, 2017.
The market's price swings and behavioral pattern can be identified while major components of the PSEI are playing into our play-book & analysis that the 1st quarter trading would in fact be a continued result of the market's
"Divergent Trend' compared with the US Major Indices including the strength of the USD. While the continued market outflows from FDI participating in the market can best be seen as heavy sellers for the past trading months.
FX CORRELATION with PH STOCK Market
The strategy to maximize risk adjusted returns in FX Cross rates along side value investing with stocks that has the market potential for exponential growth by companies making innovative business decisions in choosing the sectors to invest into could only get better in time.
ReplyDeleteThe market price movement speaks for itself as record levels are marked. While Asian stocks trails behind from continuing 'TREND DIVERGENCE' with the US market other Asian analyst still need to respect that such a divergence exist.
ReplyDeleteOnce identified these two opposing trends could be capitalize on as an alternative trading strategy. While it also serves as a mechanism for growth in Investment Portfolio by protecting / preserving value to build-up equity from other alternative global markets incorporated into the trading equation.