Limited room on the upside

Wall Street was flat last night. Dow closed unchanged while the Nasdaq fell 11pts. Dow and the S&P 500 is trading close to its 50% Fibo retracement. A kick up to the 62% (1,484) for the S&P is not impossible but the upside is about 1.5%. Hence the limited upside compared to the risk of a reversal. It is time to be cautious again as we wait for the c-wave to kick in. Be prepared for another fall soon.

The KLCI and STI is not expected to buck the global trend. Similarly, for the KLCI, I am expecting today to be a generally dull day. Well, I see little upside for the index. A test of 1297 (62% Fibo) is also likely, but I expect more of a sideways trend between 1,272 and 1,288. I would be getting out of the stocks (at today's closing price) that I bought for the portfolio yesterday.

For STI, it was a touch and go for the index. It surpassed its 62% Fibo yesterday but reversed right after to close below it. Expect more of a sideways trend as well for the STI today. Range is likely between 3,340 and 3,410. Taking out both the stocks that I bought for the portfolio yesterday.

Time to shop

I believe that today could be a good day to get in. With Wall Street being flat, it looks like the Wave counts point to an a-b-c corrective wave. On my count, Wall Street is on its b-wave up before a major c-wave down. It is similar for the STI and KLCI.

What am I going to buy today? Hmm.. For Malaysia, I am going to add Timedotcom (5031) at RM0.98 and KUB (6874) at RM0.85 to the portfolio. Add 20,000 shares for each. Gonna a stop for Timedotcom at RM0.90 and RM0.80 for KUB.

For Singapore, I am going to add 5,000 shares of Hong Leong Asia at S$2.94 and 8,000 shares of Ho Bee Investments at S$1.82. Putting a stop at S$2.80 for HL Asia and S$1.75 for Ho Bee.

Fed cuts rates!

FED cut rates last Friday and it caused a rebound on the US markets. Asian markets should mimic the price movement of the US markets today.

Asian markets posted a hammer candle last Friday, which suggest that the indices could rebound today. KLCI is expected to rebound to 1,234-1,267 while STI is expected to rebound to 3,280-3,400.

Is it time to buy? Yes, but only for the short term. Look for stocks that has been badly bashed down. Err, which stock hasn't? :) I am looking at MRCB (1651) and Land & General (L&G).
In Spore, I think the property counters could rebound. I like Armstrong and Beyonics.

For the portfolio, I am not going to do anything as I think we may have missed this rebound.
For those intending to buy, it is best to keep it short as the rebound is expected to be short term in nature. The rebound could last for 2-3 weeks max. So get in fast and get out even faster!!!

Bulls to fight back but...

Today, we should see the bulls continue to fight back after the bulls had the upper hand yesterday. Wall Street rebounded but European markets were flat. The bull is expected to dominate proceedings in the next couple of days. Nevertheless, the bear lurks around the corner. I expect selling pressure to persist and capping any rise. Investors should continue to unload on rallies as I foresee a bleak 2-3 months at least.

Here is one of the reasons why I feel this bull market is coming to a temporary end (2-3months consolidation). In Malaysia, the stocks that ran the earliest such as Gamuda (5398), SP Setia(8664) and Tenaga(5347) are under a lot of pressure for the past couple of weeks. On the other hand, property stocks in Singapore have already made a reversal. So, with the leaders coming under pressure, it is only a matter of time before the rest could follow suit. Buyers beware!!

As for Jaks (4723), I could have made a lot more if I held on. But with the overall market turning sour, in the end, I believe it could still turn out to a good move.

It is the end... for now

Gl0bal markets plunged last night due to concern of the subprime market in the US and a slowdown in takeovers (due to credit tightening). Dow fell 311pts. FTSE 100 fell the most in 4-years. Brazil, Argentina, Turkey, Sweden and Mexico fell more than 3% each. Is this the start of a new downtrend? The answer is yes and no. :)

Yes - in the short term. I am looking at a correction of at least 10% and for at least 2-3 months. This would provide a good platform for the markets to rally into 2008. That is your 'no' answer. The Bull train is not 'dead'.. it just temporarily needs servicing. :)

Fortunately, for the portfolios, I have closed out all position and am now only holding cash. For those who intend to ride this correction out - please try NOT to. Sell it first as there is always a good chance for you to buy back the stocks at a lower level.

Malaysian Portfolio - update

Like I said earlier, I am closing out all of my positions. Regional markets fell too after Wall Streets sharp fall. With Wall Street rebounding slightly yesterday, the KLCI could rebound too.

Nevertheless, the lower liners seems to be holding on well, ignoring what's happening in the external markets.

If the index breaks the 1,390 again, that would be the signal to get in again. For now, I am going to stand aside.

Time to keep cash - 100% cash

After yesterday's sharp fall, Dow Jones would likely have confirmed the start of its downtrend. Dow Jones fell 226pts to its 4-month low of 13,716 while Nasdaq lost 50pts last night to 2,639. European markets also fell sharply last night.

The KLCI closed at its all time high yesterday. However, we have cautioned investors about a sudden reversal yesterday as well. I am going to cut all position today as I do not believe that Asia can buck the global trend.

I am also going to take whatever losses for the Singapore stocks today. Am going to keep cash until the time is right to get in again... :(

Singapore Portfolio - update

Similarly, we unloaded quite a fair bit of stocks in the portfolio. The portfolio is still down which is rather disappointing. Still, there is room for improvement.

Malaysian Portfolio - update

I have added MK Land (8893) and Jaks (4723) as new stocks in the portfolio for trading purposes. We closed out quite a 'few' position last week. Will have to see how well they will perform this week.

Jaks Resources (4723)

Jaks (4723) also consolidated a long while now and it is starting to move again. I believe it is time to get in again. Buying 20,000 shares of Jaks(4723) at RM0.83 and put a stop at RM0.75. Its target is its old high of RM0.945 or higher.

MK Land (8893)

Think I am going into this stock as it has consolidated for a long while since it rallied in May/June. I am going to buy 12,000 shares of MK Land (8893) at RM1.10 for the Malaysian portfolio. Stop is RM0.94. Looking at its old high of about RM1.50 as a target.

Malaysian Portfolio - update

This is how the Malaysian portfolio looks like right now. After taking profits and cutting losses, the portfolio is still up by about 4.1%. I am still holding on TMC Life as I believe that there is more upside still.

As the negative divergence increases, there is a higher chance of the index falling sharply in the next few weeks. From now on, it will be trading only for July and August i.e. buy and hold for about 2-5 trading days.

No action in the indices but...

I do not expect much action in the indices today. We could see a rebound in line with Wall Street. These are volatile times for index players or futures players. Stock investors or traders should still be able to ride it out trading lower liners.

Today I will be adding VTI Vintage (7595) to our Malaysian portfolio. Looking to about 15,000 shares of Vintage at RM0.565 and stop loss at RM0.48.

For Singapore, adding 20,000 shares of Serial System at S$0.24 (the stock could retrace a bit more but nvm). Stop is at S$0.20. Also adding AusGroup to the lot.. add 4,000 shares at S$1.99. Stop at S$1.80.

Time to buy, buy and buy

I think that both the KLCI and STI markets are conducive for lower liners to flourish this week. I am looking to get in a couple of good stocks today. I will be looking to buy 25,000 shares of Nucleus Electronics at S$0.18 and put a 3 cents stop. Also buying 20,000 shares of Jadason at S$0.24.

In Malaysia, I will buy 8,000 shares of Hiap Teck Ventures at the opening at RM2.25 with a stop at below RM2.00. I am also tracking Melewar and Cresbuilder. I am just waiting for a pullback to get in.

Singapore Portfolio - debut

Similarly, I am going into the Spore market today. I am looking to buy

1. Asti Holdings - 25,000 shares at S$0.30. Total purchase value=7,500. Stop loss at S$0.24.
2. Hi-P International - 8,000 shares at S$1.02. Total purchase value=8,160. Stop loss at S$0.88.
3. IPCO - 50,000 shares at S$0.11. Total purchase value=5,500. Stop loss at S$0.07.

Cross my fingers!! Total purchase value is S$21,160.

Malaysian Portfolio - debut

Since I have the mock RM100,000 now, I am going into the market today! I have identified a few stocks to buy. It's shopping time!!! I am going to buy today -
1. Mieco (5001) - 10,000 shares at RM1.13. Total purchase value = 11,300. Stop loss atRM0.98.
2. Sarawak (2356) - 3,000 shares at RM2.24. Total purchase value = 6,720. Stop loss at RM2.05.
3. FSBM (9377) - 8,000 shares at RM1.52. Total purchase value = 12,160. Stop loss at RM1.35.
4. Success (7207) - 10,000 shares at RM0.97. Total purchase value = 9,700. Stop loss at RM0.82.
5. Ulicorp (7133) - 8,000 shares at RM0.735. Total purchase value = 5,880. Stop loss at RM0.64.
6. MPCorp (6548) - 10,000 share at RM0.455. Total purchase value = 4,550. Stop loss at RM0.37.

My total purchase for the day to RM50,230. Will see how it goes today.