Investing & Trading by Correlation: PSEI & MSCI EPHE

The sequence of slide information reflects how MegaTrade101 unique approach to investing & trading the Philippine Stock Market.

A complex yet an effective process that is based on the correlation of ‘Price Action’ that tracks the PSE Index, category sub-indices and their respective underlying stocks. Focused on each stock weighting and percentage distribution in the indexes. And maximize the market potential of trading the MSCI EPHE ETF in the US market.

Arbitrage & Hedge strategies are collectively applied whenever market conditions change unexpectedly. Thus providing a higher degree & probability of success in trading, by way of adapting to a variety of market conditions. Take note of the dates on each slide to follow the sequence.

Having a unique and effective perspective defined here, investors and traders alike would know their respective tolerable limits on the decline based on the real true average range on a daily / weekly price move. And properly time a short or long position to offset their current loss one trade at a time. 

As individual investors has their respective levels of tolerance, account balances, objectives and reasons for trading the stock / financial markets. This is where patience and due diligence comes into developing a market trade play for investors taking up the challenges in the market, where MegaTrade101 serves a medium for trading solutions and not simply rewinding

the news that is already wide spread globally. 

Related Info & Analysis

Tracking the PSEI & Trading the FMETF

Reflections: PSEI Price Action other than Trade War Jitters

Tail Wagging FX & Equities' In Both Directions

Follow where CONVICTION is stronger!

To no surprise, the market place have reflected price volatility as a common ground with the current  price action in the US trading session. US equities particularly with the DOW's failure to stay afloat above 25k is swaying from triple digit changes between highs and lows which comes relatively easy and see investors shifting gears or simply changing hands quickly with price action narratives.

Especially with the most recent report on the President's steel and aluminum tariff plans drew a quick rebuttal plan of action from the EU counter balance and have made the markets react in both market directions. A probable Trade War in the making have already proven depressing for the USD Index which also slipped below 90.05 losing momentum from the previous move and trading at 89.61.

No different with the FX / currency market where we have seen a quick turn around for the EURO when it marked 1.2180 with a low at 1.2154 level, CABLE at 1.3750, low at 1.3711 and the USDJPY at 105.50 with a low at 105.25. Which actually sparked a price recovery after marking our price objectives and is currently at 1.2410, 1.3883 and 106.20 respectively.  

US #Equities spilled over the #NK225 and recovered to a high at 21551 just in time with the #USDJPY at 105.50 with an extension at the 105.25. This levels were practically aligned that is why we mentioned that a contrary move was indeed in the making. With the USDJPY making a price recovery trading at 106.20 motivated by a technical divergence

And this proves to be the #VALIDATION of both before and after the fact. A typical market play reflecting #VOLATILITY is present in both sides of the market. Friday's #JOBS report would be the clincher for the rest of the week.