Ernest Lim's investing blog

Unique insights into SGX small caps

Month: October 2016

Ernest’s market outlook (28 Oct 16)

el15

Dear readers, Notwithstanding my cautious stance in the general market, I have raised my allocation from 35% on 14 Oct 2016 to around 89% on 28 Oct 16 on stocks with potential near term catalysts. Read on my technical outlook on the markets.   S&P500 Index Just to recap what I have mentioned on 14 Oct 2016 (see HERE), I wrote “it is alarming to see that 21D and 50D exponential moving averages (“EMAs) are trending lower with 21D EMA forming a death cross with 50D EMA. 100D EMA started to turn flat and S&P500 closed below 100D EMA yesterday. […]

Sapphire – profit taking likely to taper off (17 Oct 2016)

el15

Sapphire reached $0.365 on 10 Oct 2016, one bid below my measured eventual technical target of $0.370. Since then, it has fallen 14% to $0.315 on 17 Oct 2016. Will it continue to slide further?   Chart outlook Sapphire has largely been trading within the range of $0.240 – $0.305 since 25 Jan 2016 before it broke out on 6 Oct 2016 above $0.305 on heavy volume. As previously mentioned on my 19 Sep 2016 Sapphire’s write-up (click HERE), the upside breakout above $0.305 points to an eventual measured technical target of $0.370. This was attained when Sapphire reached $0.365 […]

Ernest’s market outlook (14 Oct 16)

el15

Dear readers, Although my market outlook is a biweekly issue, the technical outlook for some technical indices has deteriorated and I view it timely to update my clients. See below.   S&P500 Index Just to recap what I have mentioned on 7 Oct 2016 (see HERE), I wrote “all the exponential moving averages (“EMAs) are converging and trending higher. ADX has slipped from 22 on 23 Sep 2016 to 20 on 7 Oct 2016, indicative of a lack of trend. Indicators are neutral and stuck in a range. Although the trend continues to be an uptrend until proven otherwise, my […]

GSS Energy spiked 67% since 1 Sep 2016! What gives? (10 Oct 16)

el15

GSS Energy’s (“GSS”) recent share spike and chart action caught my attention. GSS has surged 67% from $0.048 on 1 Sep 2016 to close $0.080 on 10 Oct 2016. It has just moved above its 200D exponential moving average (“EMA”) for the first time in 16 months! Furthermore, GSS announced that its subsidiary was awarded a KSO contract from Pertamina for oil production for the Trembul Operation Area. In view of the chart and company’s developments, I arranged a meetup with Mr Sydney Yeung, CEO of GSS Energy for an exclusive discussion of the company’s business developments and prospects. Below […]

Ernest’s market outlook (7 Oct 16)

el15

Dear readers, The recent selective small cap rally seems to be as hot as the China property market! For those who have not benefitted in the recent selective market rally, is it too late to jump on the bandwagon now? Let us take a look at the various broad market indices first.   S&P500 Index Just to recap what I have mentioned on 23 Sep 2016 (see HERE), I wrote “S&P500’s volatility has increased since 9 Sep 2016. RSI has increased around 32 on 9 Sep 2016 to 52 (a neutral level) on 23 Sep 2016. All the exponential moving […]