a top-down engineering approach to profit from the global market

8/9/2019 A Top-Down Engineering Approach to Profit From the Global Market

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A Top-Down

Engineering Approach

to Profit from the

Global Stock Market

KH Tang

30 March 2010

(Brief Version)


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How Big is the Global Market?

A report by World Federation of Exchanges [WFE] for the

period ending April 2007 (excludes investment funds and

some markets such as Russia). Their data indicates that the

market cap of the U.S. stock markets account for only 36.4%

of the world market capital of$56.4 trillion.*

* This is a very dynamic data, as global currency conversion rate and stocks are fluctuate every moment.Anyhow, it does provide a big picture of how things are composed.
http://seekingalpha.com/article/38252-a-world-market-cap-approach-to-allocationhttp://seekingalpha.com/article/38252-a-world-market-cap-approach-to-allocation


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How Does Distributed?

Americas - 42.4%

(Russell 3000 36.3%, S&P500 31.8%, Canada 3.2%, Brazil 1.5%,

Mexico -0.5%)

Asia/Pacific - 25.8%

(Japan 8.3%, China, 6.9%, India 3.2%, Australia 2.3%, Korea 1.6%,

Singapore 0.8%)

Europe, Africa & Mid-East - 31.8%

(Three major shares are from Germany, France & United Kingdom)


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Why do you need to know these?

In this Globalized Business World, the economy in one part of theworld is directly or indirectly influence by the business of the otherpart of the world. Especially by the economies of the few bigbrothers like the economy of US would influence themanufacturing capacity of China, etc.

Therefore, the global stock markets tend to conform the movementof each another.

The trend of the currency exchange rate of a country can add fuelto speed up the rate of the up raising stocks or down falling stocks.

Having a Global View can take the advantage of riding the leadersin both directions.

Capitalize on the Sector/Country Rotation worldwide.


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How to go about doing it?

Data Acquisition of Major Stock Markets.

Grouping of Stock Data by countries and by sectors.

Ranking of Group Strength by countries and by sectors.

Using others ranking/filtering techniques, such as StrengthForecast, and Multiple-Time-Frame to sort the trading list.

Using Rotational Trading to:

- Long the Strongest Candidate (ETFs or Indices)

- Short the Weakest Candidate (ETFs or Indices)**.

** Heavily traded ETFs or Index Funds are much better trading vehicle thanindividual stock as it is much harder to manipulate.
http://www.hometradersignals.com.au/signals/asx-rotational/rotational-trading-philosophy.aspxhttp://www.hometradersignals.com.au/signals/asx-rotational/rotational-trading-philosophy.aspx


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Example: By Sectors


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Example: By Countries


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Example: By Listing

Strongest Candidates List for Long

Strongest Candidates List for Short


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Example: By Visual RS & Traffic Lights


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References:-

http://blessedfool.blogspot.com/2009/10/stock-market-tools-engineering-approach.html

http://blessedfool.blogspot.com/2009/10/stock-market-tools-2-sector-rotation.html

http://blessedfool.blogspot.com/2009/10/stock-market-tools-3-multiple-time.html

Examples:-

http://lionshares.blogspot.com/

"La guerre!Cestune chose trop grave pour la confier des militaires."

"War is too important to be left to the generals."

-Georges Clemenceau (1841-1929): A French journalist, physician and statesman. He servedas Prime Minister from 1906 to 1909 and from 1917 to 1920.

With the same token, I would suggest that:-

Personal Finance matter is Too Important to be left to the Financial

Advisors!

Bless you

KH Tanghttp://blessedfool.blogspot.com/2010/03/stock-market-tools-8-global-trading.html
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a top-down engineering approach to profit from the global market

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