S&P500 chart 12 Oct 18

STI has dropped almost 17% since 2 May! Is a bear market coming? (14 Oct 18)

Dear all, U.S. equity markets have logged their worst weekly performance in the past six months. For our local market, STI has dropped 16.7% from an intra-day high of 3,642 on 2 May 2018 to an intra-day low of 3,035 on 11 Oct 2018. It closed at 3,069 on 12 Oct 2018. Is a bear market coming? There are mixed views. Bears are saying that we have not reached the bottom yet. Some perma-bears are even saying this may be the start of the bear market. Bulls are saying that this represents a window of opportunity to accumulate stocks on […]

Tencent analyst target 12 Oct 18

Two interesting stock charts – Best World and Tencent (12 Oct 18)

Notwithstanding the sea of red in the equity markets for the past couple of days, these two stock charts caught my attention. They are Best World and Tencent.   Best World – retreats back to double bottom neckline Best World has dropped 9.2% from an intra-day high of $1.52 on 4 Oct 2018 to close $1.38 on 11 Oct 2018. Based on Chart 1 below, Best World is retreating back to its double bottom neckline of around $1.39. This seems to be a classic “break and re-test” resistance turned support pattern. There is a confluence of supports (50D, 100D and […]

Best World chart 19 Sep 18

Best World – potential bullish double bottom formation in the making? (19 Sep 18)

This week, Best World has caught my attention. Why is it interesting? a) Chart seems to be in the midst of a double bottom formation Best World has fallen 29% from an intraday high of $1.90 on 19 Mar 2018 to close $1.35 on 19 Sep 2018. It has been trading in a range $1.20 – 1.39 since 15 May 2018. Indicators are mixed with MACD and RSI exhibiting bullish divergences during this period. Except for 200D EMA which is levelling, all other EMAs are rising. 20D has already formed a golden cross formation with 50D EMA. Best World has […]

U.S. indices monthly performance since 1928

S&P500, Nasdaq and Russell 2000 hit records, time to switch to underperforming markets? (24 Aug 18)

Dear all, S&P500, Nasdaq and Russell 2000 hit records last Friday with S&P500 closing at 2,875. However, our STI has dropped 11.8% after hitting a decade high of 3,642 on 2 May 2018. Hang Seng has also tumbled 17.4% after hitting a high of 33,484 on 29 Jan 2018. Is this the time to switch out of the U.S. markets and plough it back to STI and Hang Seng? This seems to be the question on most investors’ minds as I am also posed this question during a live interview on Money FM89.3 on last Thursday. Let’s take a closer […]

Yangzijiang anr 6 Aug 18

Yangzijiang – 2nd worst performing STI stock with -40% YTD (6 Aug 2018)

Yangzijiang (“YZJ”) has been the 2nd worst performing STI stock with -40% year to date (“YTD”) return based on the closing price of $0.880 on 6 Aug 2018 (click HERE). In the past four days, YZJ has weakened approximately 9.3% after hitting the intraday high of $0.970 on 31 Jul 2018. Is this recent share price decline the harbinger of poor results to be released on 7 Aug, after market?   2QFY18 results unlikely to be poor Based on my personal view, 2QFY18F results are unlikely to be poor based on the following points: a) Number of vessels delivered Based […]

STI chart as of 19 Jun 18

STI – down 9.4% since 2 May. Correction coming, or buying opportunity? (19 Jun 18)

With reference to my market outlook HERE posted on 11 May 2018, I mentioned at that time that I  have started to sell into strength, as I am cautious on the overall market. I updated on 30 May 2018 (click HERE) that STI is likely to trade sideways with downward bias. Separately, my clients would have been notified on 12 Jun 2018 morning that I have already reduced my percentage invested to approximately 40% as I believe market is likely to trend downwards in the next couple of weeks. In the span of four trading days, STI has dropped 148 […]

S&P500 chart 11 May 18

STI notched a ten year high on 2 May – is it a screaming buy for all SG stocks (11 May 18)

Dear all, Dow has logged a seventh consecutive rise and small caps as measured by S&P600 index have just closed at a record high as of 11 May 2018. Our Singapore market has also done us proud too by becoming Asia’s best performing equity market on 2 May 2018. In view of the above, is it a screaming buy for our Singapore market, especially our small caps which have under-performed? Let’s take a closer look at the charts and my personal action plan.   S&P500 closed 2,728. Day range 2,717 – 2,733 Based on Chart 1 below, S&P500 seems to […]

Sunningdale's peers 30 Apr 2018

Sunningdale trades at 8.3x FY18F PE; 0.66x P/BV and 5.5% FY18F div yield (30 Apr 18)

Sunningdale has plunged 46% in less than half a year, from an intraday high of $2.40 on 6 Nov 2017 to close $1.30 on 30 Apr 2018. What happened? Is Sunningdale a “goner”?   Some reasons for Sunningdale’s decline Sunningdale’s share price decline may be attributed to some of the reasons below: a) Sentiment on tech sector has soured Sentiment has soured on the tech sector primarily due to downbeat results or / and guidance from tech companies such as Taiwan Semiconductor Manufacturing Co. Ltd, SK Hynix. Secondly, there are rising fears of increasing regulation measures on the tech sector. […]

CCB chart 23 Mar 18

HK listed China banks to report results this week – potential trading opportunities? (23 Mar 18)

With reference to my earlier write-up (click HERE), besides SGX listed stocks, clients and readers can consider to take a look at some of the China banks listed on HK stock exchange. They may be interesting due to their upcoming results which may present some potential trading opportunities, especially when some of them have fallen 13-14% from their recent highs on 29 Jan 2018.   Why do I choose HK listed China banks, instead of our local banks for potential trading opportunities? 1. On a macro picture, Hang Seng seems to be slightly stronger than STI based on chart. For […]

Thai Bev analyst target price dated 23 Feb 18

ThaiBev drops to almost a two-year low. Will it go lower? (23 Feb 18)

ThaiBev has dropped 12% from an intraday high of $0.920 on 14 Feb 2018 (before the results) to trade at $0.810 on 23 Feb 2018. At $0.810, this was the lowest last seen on 13 May 2016. Will it go lower?   Chart analysis Based on Chart 1 below, ThaiBev is entrenched in a strong downtrend with all the exponential moving averages (EMAs) moving lower, coupled with death cross formations. The breakdown at $0.895 points to an eventual measured technical target of $0.805 which is attained today. Since its result release on 14 Feb after market, the volume of shares […]