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Current DateTime: 11:25:12 24 Nov 2009
LinksList Documentid: 30328029
Stock Picker: Use Asian Market Moves as a Trading Strategy
Published: Thursday, 20 Aug 2009 | 3:19 PM ET
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By: JeeYeon Park
CNBC News Associate

Asian markets have been the focus for many investors in the last few days, as some say they are a leading indicator for the rest of the global markets. Dan Genter, president, CEO and CIO of RNC Genter Capital Management and Scott Redler, chief strategic officer at T3live.com, shared their views and offered some investment strategies.

“In 2007, the Asian markets broke to the downside first and it started to lead the rest of the world,” Redler told CNBC.

“And in March, they led the first part of the rally—they rallied about 2 weeks before we started our move. So when they start to have extreme moves, you need to use that as an indicator on your trading strategies.” (Read below for his stock picks.)

Redler said although earnings are going to be key moving forward, it was not what initially led the markets out from the March lows.

Genter, on the other hand, said earnings momentum was the most important factor that helped boost markets.

“If you look at this market, it’s reacted off the bottom based on earnings momentum,” he said.

“The key is, we’ve probably plateaued off the bottom and the movement is upwards and we’re going to see recovery in earnings,” said Genter.

Redler Likes:

iShares FTSE/Xinhua [FXI  Loading...      ()   ]

Bank of America [BAC  Loading...      ()   ]

AIG [AIG  Loading...      ()   ]

U.S. Oil Fund [USO  Loading...      ()   ]

Redler Dislikes:

Palm [PALM  Loading...      ()   ]

American Express [AXP  Loading...      ()   ]

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Disclosure:

No immediate information was available for Genter or Redler.

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