Have you checked out what the markets are doing?
How do you know whether it’s a good time to get involved?
The easiest way is to use a macro filter.
Learn what my macro filter says at the moment.
C’mon… you know you want to see it.
Have a look.
Currently, my macro filter is on because the volatility is only 2.19% and there has been a close above the 30-week moving average on the All-Ords chart.
This is current for the week starting April 11th, 2023:
So, now that you know that, what do you do?
When your macro is on, you can enter new positions in the Aussie market because the trend is on your side and volatility is low enough so that you won’t get flipped out of positions where the primary trend is in place.
It can be a bit difficult when the markets are giving signals that say ‘go’, then ‘wait’, then ‘go’ again. So it’s essential you calculate what actions you’ll take if the macro turns off again.
Here are some possible actions you could take when your macro is off:
- Close out all of your positions
- Choose not to enter new positions
- Strategically lighten cold sectors (to make it easy, these are the current cold sectors)
- Decide not to pyramid, or choose to keep pyramiding
- Not realise there’s a change in the market sentiment and continue being oblivious
- Think “It’s time to bargain hunt!”
So what are you going to do?
Does this part of your trading plan need a polish?
Pre-consider every market move before it happens and make a plan. That way you’ll be more likely to keep a cool head when the markets change direction.