Timing NGX Trades: Interpreting ASI’s Green, Amber & Red Signals

The All-Share Index (ASI) shows overall market risk, not which stocks to buy. Imagine three weather lights for the index: • Green: Key support holds with broad participation. Selective adds in strong names are reasonable. • Amber: Market is fragile or choppy. Quality names still hold, but aggressive buys need more proof. • Red: Index is breaking down. Pause fresh risk and protect capital. Don’t assume a 2% ASI gain means every stock is a buy. Breadth matters. Before adding any NGX name, ask: “If the index rolls over this week, would I still be comfortable with this position?” If not, size down or wait. Stock picking is micro. Index behavior is macro timing. You need both; neither replaces the other.

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