S.E.T -- The Current Market Leader

Sawadee krap :)

Looking for market “leader”? Take a look at Thailand (SET).

Different trading/investing approach use different ways to make trading decisions.

Generally, many market players operate on some kind of herd mentality, always seeking a “leader” to follow.

US markets have always been accepted as the “big brother”, watched, and “followed by many; and in recent time, much attention has been paid to the Chinese economy.

However, if I were to tell you, Thailand market has been a “good leader” to me for the pass one year, how would you react to this? Some might just repeat: “What? Thailand?”

And Yes, Thailand, the SET !!!

Let me walk you through the last 15 months (start of 2015 till now): 1) SET hit her peak during the first week of FEB 2015, while most other markets continued to climb, peaking only between APR to JUN 2015.

2) When some of the “slowest” markets were forming their peak in JUN, SET spent the month of JUN at her then year low, flipping my EmotionLines DOWN, to FEAR emotion.

3) SET continued her down move, bounced off the low during AUG (just like everyone else), and resumed her down trend from NOV. By the middle of JAN 2016, she loss 26% from her peak, but during the PANIC Emotion (EmoLines opened wide), an Inverse Hammer was formed, with trigger.

4) While most other markets are still determining their lows during late JAN into FEB, SET has been on a steady climb. By the end of JAN, she has already climbed above her YEC (Year-End_Close), making her positive for the year. By now, she is up more than 8%, year-to-year, while many other markets are still in the red.

All said, professional trading is about HAVING a trading PLAN, and FOLLOWING the plan, which is “D.E.E.P”, which stands for …

1) Determining “D”irection 2) Deciding on how to “E”nter 3) Knowing where to “E”xit 4) Deciding on your “P”osition Size

TY-C138 I use my EmoLines to help me with the first “D”, together with candlestick Price Action, and season colors (refer to our earlier write-up on EmoLines & TY-seasons). I teach my students a Simplified Entry/Exit method called TY-C138, which follows the pair of moving average trend, using parameters of 8 & 13 periods. This simple method gave SET a short entry in the beginning of MAR last year, to enjoy the initial drop. It gave another entry in the early part of NOV, to participate in the final drop. In the middle of FEB, C138 gave me a bullish signal, to cash in this up swing.

If you wonder how I come to decide on this “leader”, it all started from a trading seminar 2 years ago, when SGX got me over to Thailand as a speaker to share my trading experience with the locals in Bangkok.

Since then, I’ve been observing the SET while correlating her with the rest, leading to my subsequent discovery.

I have benefitted from this (SET) leader in helping me decide on my “D”. I’m sharing this here with you with one main purpose, that YOU too, could benefit not only from this leader, but also from my EmoLines, season colors, and C138 entry signals. Remember to firm up your trading rules, HAVE a PLAN, and develop the habit to FOLLOW your plan. May you find more joy in trading/investing, leading to further joy in life. TY-TY