Weekly Review and Outlook

7th to 11th Feb 2022

Kar Yong


And so we ended the month of January 2022 with a down month. It’s not a rosy picture to start the year, but it is what it is. Just before the year started, I wrote a post on 2022 being a difficult year for the stock market.

And based on seasonal statistics, there is a good 70% probability the S&P500 would drop between 4th January to 8th February. These statistics played out nicely.

Moving forward, there is a 90% probability that the S&P500 would rally between 8th February to 18th March, with an average of +4.40%. Is it time to start buying?

I’ll share more in the later part of this article, but first -

Here’s the review for the past week:

Going into February, my equities portfolio is currently down by -7.91% YTD. Last week, I added a couple of positions from the momentum trade strategy, bringing my cash position to 15.64%.

I’ll be looking to add a couple more positions this coming week following my seasonal trade ideas strategy.

Some investors have been asking, “Is this the bottom? Are we gonna see a bounce higher from here already?”

From my analysis, I would say it’s a good 55% we might see the market moves higher from here. BUT first we wanna give it a few more days to see how price develops first (more details at the latter part of this article).

*If you wish to follow and copy my portfolio, you can do so via eToro HERE.

Going into February, my FX trading portfolio has been overall great.

  • EA_Trader account: +10.90% YTD
  • CXM account: +9.80% YTD
  • CipherTrader20 account: +6.08% YTD
  • TraderConstant account: +7.87% YTD

These accounts are all running on expert advisors (EAs) aka robot trading. If you’re new to robot trading, I’ve written an article on it recently HERE.

*If you wish to follow and copy my FX trades, you can book an appointment call with my team HERE.

Now onto the week ahead:

The Dollar Index (DXY) seems to have completed a 5-wave structure on the daily scale around 97.44, and made a strong impulse move to the downside last week. On the lower timeframe (H4), price is reacting off the lower trend line, and we are…