Ernest Lim's investing blog

Unique insights into SGX small caps

Energy

Boustead Singapore – chart poised for a bullish breakout! (23 Jun 23)

el15

Dear all With reference to my write-up on Comfort Delgro dated 9 Jun 2023 (click HERE) where I pointed out that I am comfortable to accumulate Comfort Delgro for a trading play, Comfort Delgro closed at $1.03 on 9 Jun, the lowest close last since on 18 Mar 2004. Since my writeup, Comfort Delgro has fortunately appreciated nine out of ten trading days to close almost 15% higher at $1.18 today. This compares favourably with STI which moved up 0.2% over the same period. Another stock, Boustead Singapore has recently caught my attention due to its chart development. It closed […]

Nasdaq has soared 14% in 1 month! Should we chase this rally? (30 Jan 23)

el15

Dear all It has been a busy January. As you are aware, I have kept my powder dry by taking it slow and easy in Dec and have taken some opportunistic positions amid the sell-off in Dec. Just to recap, with reference to my writeup published on 3 Dec (click HERE), where I mentioned that I am taking it slow and easy in Dec, S&P500 and STI fell by 5.9% and 1.2% respectively in Dec. In fact, S&P500 registered the worst Dec performance in four years. However, Hang Seng was still very resilient and jumped 6.4% in Dec on continual […]

Markets – diverging signs from technicals and fundamentals. What should we do? (4 Apr 2022)

el15

Dear all March has been a roller coaster month. Hong Kong market, represented by Hang Seng index touched multi-year lows around 14-15 Mar and has rebounded approximately 21% from the intraday lows. S&P500 performed well too with a third consecutive weekly rise. With reference to my writeup (click HERE) published on 6 Mar 2022, I mentioned that a) Odds are likely of a downward push first I mentioned that based on chart, odds are higher for a downwards move for both S&P500 and STI, to retest the previous support around 4,115 – 4,222 and 3,138 – 3,200 (with 3,175 a […]

GSS Energy – Electric mobility business takes shape (25 Jan 22)

el15

Dear all, With reference to my write-up published on 5 Jan 2022 (click HERE) citing that Asian indices are likely to outperform that of the U.S. market in 2022, our Asian indices, viz. Hang Seng and STI have outperformed the U.S. market significantly (See Table 1 below). U.S. S&P500 notched a 6.4% decline whereas Hang Seng and STI registered a 9.0% and 4.2% gain respectively since my write-up. Table 1: S&P500, Hang Seng and STI 2021 performance since 5 Jan 2022 Source: Ernest’s compilation Given the outperformance, are there still pockets of opportunities in our Singapore market? The short answer […]

STI – having closed at a record YTD high, will it continue higher? (7 Nov 2021)

el15

Dear all With reference to my market outlook published on 3 Oct (see HERE) citing opportunities in our Singapore market, STI has soared 191 points, or 6.3% from 3,051 on 1 Oct to close at a year to date high 3,242 on 5 Nov. Will STI continue to march higher, or will there be some profit taking?   Very briefly, my personal view is It is likely that STI may face some profit taking in the near term, attributable in part to the following factors: a) With reference to Figure 1 below, MSCI Singapore index will undergo a rebalancing in […]

3 interesting charts to take note: GSS Energy, China Sunsine and Sing Medical (28 Oct 2021)

el15

Dear all With reference to my market outlook published on 3 Oct 2021 (see HERE) where I cited opportunities in our Singapore market, our Singapore market (represented by STI) has jumped 154 points, or 5.1% since 1 Oct. Amid the recent strength, is it too late to plough into the markets? Are there still stocks who may have further upside? Based on my personal chart observation, GSS Energy, China Sunsine and Sing Medical have interesting / bullish charts’ setups which may be interesting to take a look.   GSS Energy Based on Chart 1 below, GSS seems to be on […]

STI at 3,051 – Presents some attractive opportunities (3 Oct 2021)

el15

Dear all With reference to my market outlook published on National Day (see HERE), both STI and Hang Seng have hit their highs on 10 Aug and 11 Aug respectively before dipping. Based on Table 1 below, S&P500, Hang Seng and STI have fallen 1.8%, 6.1% and 4.0% respectively since my writeup. Table 1: Indices’ performance since my last writeup Source: Ernest’s compilations Amid the recent weakness, you may be wondering whether it is a good time to accumulate on weakness. Before we get to this, let’s take a look at the indices’ charts.   S&P500 closed 4,357 Based on […]

GSS Energy looks interesting; key level for potential bullish breakout is at $0.075 (27 Sep 2021)

el15

Dear all Of late, GSS Energy (“GSS”) has caught my attention. It has dipped from an intraday high of $0.083 on 17 Sep 2021 and has weakened to $0.072 on 24 Sep 2021. This weakness may be attributed to profit taking and contra players exiting or rolling their positions. 24 Sep is T+5 of its high-volume day on 17 Sep. My personal guess is that most of the contra players may have already exited (i.e., selling may have been largely exhausted). It may be time to relook into GSS Energy. Let’s take a look.   Basis a) E mobility business […]

Frencken nears 14Y overbought RSI level amid 10Y high prices (19 Nov 2019)

el15

This week, Frencken has caught my attention with its 34% surge from $0.690 on 31 Oct 2019. It closed $0.925 on 19 Nov 2019. At $0.925, this is very near to its 10-year high closing price $0.930 set on 18 Nov 2019. Since 31 Oct 2019, it has risen 10 out of the past 13 trading days with two days having closed unchanged. RSI closed at 88.1 on 19 Nov 2019, which is near a 14 year overbought level. Based on Frencken’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more […]

Why am i cautious going into July… (2 Jul 19)

el15

Dear all, With reference to my market write-up published on 29 May 2019 (click HERE), where I mentioned that the sell-off in the markets revealed interesting trading opportunities, markets coincidentally bottomed on 3 Jun 2019 and staged a strong recovery. I have already sold into strength and reduced my percentage invested in stocks from 150% in early June to 12% now. Personally, I am cautious in the market going into July. Why is this so?   Basis below 1) Markets jumped yesterday following the U.S. / China trade truce announced over the weekend, despite the lack of details on what […]