Table 2_Top ten stocks sorted by total potential return 30 Sep 21

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

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 […]

Table 1_Top ten stocks sorted by total potential return 30 Jul 21

S&P500 closed at record high! What should we do? Buy or sell? (9 Aug 2021)

Dear all S&P500 has clocked its sixth consecutive month of gains in July 2021. This is the longest stretch since 2018. Furthermore, S&P500 has touched a record high to close at 4,437 on 6 Aug 2021. In the next 3 months, are markets poised for higher highs? Or should we be prudent and take some profit off the table first? Let’s take a look.   Ernest’s personal market observations a) Lack of catalysts to push the market higher Since Covid last year, markets, especially U.S. markets, have been able to push higher due partly to the combination of ultra-easy monetary policies; […]

Table 1_Top ten stocks sorted by total potential return 30 Jun 21

STI – Will it head for new YTD high after S&P500 clocked its 7th consecutive day of rally? (6 Jul 2021)

Dear all S&P500 and Nasdaq clinch fresh record highs last Friday with S&P500 clocking in seven consecutive days of gains in its longest winning streak since August 2020. Despite the roaring U.S. markets, Singapore Straits Times Index (“STI”) has slipped almost 100 points from its 2021 intraday high of 3,237 on 30 Apr 2021 to close 3,141 on 5 Jul 2021. Can STI exceed 3,237 for 2HFY2021? Most strategists believe so, as their year-end targets for STI are easily above 3,237. Let’s look at the possible reasons why analysts are positive on our Singapore market.   Reasons to be optimistic […]

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7 reasons why Private Resale Condos may be better than new launch for HDB upgraders (6 Mar 21)

This write-up was reproduced with permission from Ray’s Estate Clinic, written by Founder, Raymond Chng. Please refer to the end of the article for more information on Raymond. Since 2018, we have been sharing with our clients and readers that resale properties are good options. Today, as of the date of writing, there are still a handful of readers asking us if resale properties can be profitable. The simple answer is – Yes! There are considerations that property buyers should note about New Launch properties, in particular for HDB upgraders. Most HDB upgraders who are selling off their BTOs would […]

Table 1_Top ten stocks sorted by total potential return 29 Oct 20

Singapore – Asia’s worst equity market YTD, any opportunities ahead? (29 Oct 20)

Dear all It is less than a week from the U.S. election. U.S. markets are understandably jittery. S&P500 has fallen 316 points, or 8.9% from its intraday high of 3,550 on 12 Oct 2020 to touch an intraday low 3,234 on 30 Oct 20. In fact, S&P500 has tumbled 195 points or 5.6% this week. S&P500 closed at 3,270 on 30 Oct. The media has written extensively on the risks surrounding U.S. election since months ago hence the election event risk is hardly a new one. Examples of risks which media has written about is the possibility on contested election […]

Analyst 26 Oct 20

UG Healthcare – 6 interesting aspects on UG which caught my attention! (26 Oct 2020)

Dear all, UG Healthcare (“UG”) recently caught my attention. It has tumbled approximately 20% from an intraday high of around $1.15 on 7 Aug 2020 to close $0.915 on 26 Oct 2020. The doji formation on 26 Oct 20 on good volume may be an early indication that selling may abate in the near term. The recent weakness in UG’s share price is likely attributed to profit taking in the share prices of its Malaysia listed peers and occasional news on the development of vaccines which may result in demand for gloves and consequently their average selling price (“ASP”) falling […]

Nasdaq chart 8 Sep 20

Recent weakness provides accumulation opportunities (9 Sep 20)

Dear all Based on Table 1 below, U.S. indices have fallen between 5.5% – 10% from the close of 2 Sep to 8 Sep. Nasdaq led the decline with a 10% drop. These are interesting times indeed! Why do I say so? Read on below. Table 1: Performance of various indices from 2 Sep to *8 Sep 20 Source: Ernest’s compilations (*STI and Hang Seng are based on 9 Sep closing prices) In my personal opinion, this recent U.S. market weakness provides accumulation opportunities for the well prepared and for those who have been waiting on the side-lines to accumulate […]

Top ten stocks sorted by total potential return 3 Sep 20

Stocks sorted by total potential return (7 Sep 2020)

Dear all U.S. markets have fallen sharply with Nasdaq dropping almost 1,200 points or 10% from an intraday high of 12,074 on 2 Sep to an intraday low of 10,876 last Fri. For example, Apple Inc. has lost $219b in market cap from the close of 1 Sep through 3 Sep which is larger than the market cap of Exxon Mobil Corp., for long the world’s largest company! In view of the recent decline, some clients have asked me which are the stocks that they can look at. Below is my compilation of the top ten stocks and the bottom […]

STI 1Y chart 24 Dec 19

STI – to head towards 3,390 points in 1Q2020? (25 Dec 19)

Merry Xmas! As we approach end 2019, most market strategists are putting their market estimates for end 2020. Although I do not profess to be in the league of these market strategists, just for fun, I am expecting STI to head towards 3,390 in 1Q2020. STI closed at 3,222 on 24 Dec 2019. I have outlined my basis and the risks involved.   Factors for my bullish basis a) Chart looks positive after bullish break Based on Chart 1 below, STI has staged a bullish break above its flag formation on 12 Dec 2019. Notwithstanding below average volume for the […]

S&P500 10Y PEBD 1 Jul 19

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

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 […]