Ernest’s market outlook (27 May 16)

Dear readers, Two weeks ago, I mentioned that although I am cautious on the overall market in the next couple of months, I have spotted at least two companies which I may accumulate on weakness. I have since increased my percentage invested from around 36% to 80% by accumulating on one stock on weakness. About half of my portfolio (i.e. approximately 40%) is invested in one stock. Notwithstanding some specific stocks, I remain cautious on the general market. Read on to find out why.   S&P500 Index Just to recap what I have mentioned on 13 May 2016 (see here), […]

My interview on Mediacorp Ch 8, 9am Morning Express 晨光第一线 (27 May 16)

Dear all, I am pleased to say that I have appeared on Mediacorp Ch 8, 9am, Morning Express 晨光第一线 on 27 May 2016 again. Readers who wish to know my market outlook on Morning Express 晨光第一线 can click the link indicated here. Please scroll the time bar to 13:45 to view it. http://video.toggle.sg/en/tv-show/news/may-2016-morning-express/fri-27-may-2016/407281

3 simple steps to start stock investing (20 May 16)

3 simple steps to start stock investing (Guest post) In a previous article titled ‘5 reasons why stock investing is so difficult to start’ (see here), I’ve mentioned the reasons that often become excuses, serving as inhibitions to the journey of stock investing. Many people have asked me how to address these reasons and the answer is simple: confidence. However, not many people notice that it is their lack of confidence that affects their first step to investing, as opposed to risk appetite. These are the 3 simple steps to boost your confidence, which will help you make your first […]

Innovalues’ profit taking may be over soon (17 May 16)

Innovalues has slid 15.5% from an intraday high of $1.095 on 22 Apr 2016 to close $0.925 on 17 May 2016. Has it bottomed? Or will there be more selling pressure?   Chart analysis Innovalues tested the support of around $0.900 on 11 May and 12 May 2016 and closed at $0.905 and 0.925 respectively. Despite the dividend of $0.026 which went ex-dividend on 13 May, Innovalues did not close below $0.900. Furthermore, the past four trading days (12 May – 17 May) saw Innovalues test its 50D exponential moving average (“EMA”) resistance currently at $0.925. It closed at $0.925 […]

Ernest’s market outlook (13 May 16)

Dear readers, I have taken profit on some stocks and reduced my percentage invested from 50% on 6 May 2016 to approximately 36% on 13 May. Notwithstanding some potential small technical rebound in some markets, I remain cautious. Although I usually do my market updates every fortnight, I deliberately did one this weekend after my write-up on 6 May. Read on to find out why, and how I intend to take advantage on this development.   S&P500 Index Just to recap what I have mentioned on 6 May 2016 (see here), I wrote “although market sentiment seems to have taken […]

Ernest’s market outlook (6 May 16)

Dear readers, Hope the recent market weakness did not catch you off guard. Personally, the recent market drop didn’t come as a surprise as I have been positioned rather nicely for this. I have taken the opportunity to increase my percentage invested from 15% on 22 Apr 2016 to approximately 50%. Read on to find out why.   S&P500 Index Just to recap what I have mentioned on 22 Apr 2016 (see here), I wrote “Although S&P500 formed a new five-month high on 20 Apr 2016, indicators such as MACD and RSI have exhibited bearish divergences. In my opinion, although […]

Sapphire’s chart strengthens (5 May 16)

Despite the STI’s 16.6% rally from 12 Feb 2016 through 21 Apr 2016 closing levels, Sapphire has been a laggard and registered a 13.3% drop. However, over the past two weeks, there seems to be a change in Sapphire’s price movement. Sapphire registered a 9.8% gain vis-à-vis a 6.5% drop in the STI, on the back of the strongest weekly volume (25 – 29 Apr 2016) for the past two months. Based on Chart 1 below, Sapphire is on the verge of testing a region of strong resistance of around $0.275 – 0.280. 21D and 50D EMA have started to […]

STI has fallen 9 out of 10 sessions! (4 May 16)

STI has fallen almost 191 points, or 6.4% from 2,964 on 21 Apr 2016 to close 2,773 on 4 May 2016. The fall was mainly attributable to risk off attitude arising from the sharp surge in JPY due mainly to the surprise from Bank of Japan Meeting last Thurs; lacklustre corporate results and weak economic data from China and U.S. etc. Based on Chart 1 below, STI has fallen below all the exponential moving averages which is not a good sign. Fortunately, there is no death cross formed at the moment. In addition, ADX closed at 18.7 which is still […]

My interview on Mediacorp Ch 8, 9am Morning Express 晨光第一线 (29 Apr 16)

Dear all, I am pleased to say that I have appeared on Mediacorp Ch 8, 9am, Morning Express 晨光第一线 on 29 Apr 2016 again. Readers who wish to know my market outlook on Morning Express 晨光第一线 can click the link indicated here. (http://video.toggle.sg/en/tv-show/news/apr-2016-morning-express/fri-29-apr-2016/397149) Please scroll the time bar to 14.00 to view it.

CIMB CFD – an invaluable tool to boost portfolio returns! (1 May 2016)

I have been utilising CFDs for many years to boost my portfolio returns. Over the years, I noticed the following trends: a) Market volatility has risen Even blue chips such as our banks, or telcos, such as Singtel can move in a range of 10% within a couple of months. CFDs which allow up to 10x leverage can be used to capitalise on such wild swings. b) Local CFD platforms have vastly improved over time For example, CIMB CFD allows contingent order, stop loss etc. which minimise the time invested in monitoring your positions. c) Shorting is still lucrative in […]