Nearly 2 years back I wrote about a unique trading strategy- “Time Zone Trading Opportunity” where I provided examples linked to US, Singapore, Japan, Indian stocks markets and so on. The strategy still holds true and I have been using it quite successfully. However, one thing, indirectly has changed since then.
Who is leading whom? 2 years back it was pretty much clear that The US was the leader i.e. whatever was happening to “US market close and US futures”, the same appeared on Asian and European markets. While this is partly true even today, I have noticed that US futures are now fueled by what’s happening in China. Asia, particularly South east Asia, is surely following China’s movement.
Just today, when US stock futures were lackluster and Asian markets were behaving so so, Industrial production heads-up, posted by some Chinese newspapers, fueled a bull. The Hong Kong Market jumped nearly 4% on the upbeat data and this tide lifted almost all the Asian boats as well US stock futures.
I haven’t had chance to analyze the data yet. However, I shall surely encourage to peel the onions. Get into the facts and figures to review if it is the “fundamentals” or “headlines” that are driving markets higher. For my personal perspective, Markets internals aren’t improving and buying has almost come to a halt. In such an environment even a slight selling can trigger panic…my usual thought thought “Forget the past you lose one of your eye, live in the past and you will lose both” (It’s not mine).
So let the facts and figures be your guide.
Profitable Trading, OP