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Tuesday, December 29, 2009

The Breaking of 2nd Triangle

Just to let you know that KLCI has successfully breaking the second triangle, the first one was 2 weeks ago. If you read my previous post on breaking triangle formation, you should know what I'm talking about.

As you know, many technical analysis traders have identify that there is a head and shoulders found from the index chart on 2 weeks back. For me, I opposed them and I identify it as the 1st attempt of triangle breakout. On yesterday, it is the second triangle breakout, which mostly proven the bull trend is likely to be continued as what I expected earlier. Don't misunderstood me, I don't predict what is going to happen, but I just tell what the index chart tells me.

If you enter during these 2 days, congratulations, because these few days are the golden time to invest some strong growth companies, with the following 4 reasons:
(1) Most of the companies will be announcing 4Q09 financial result soon, starting from mid of Jan 10. Do enter early to grab a lower investment cost.
(2) The total company rising index is positive for 3 consecutive days, it has been negative for the past 3 months.
(3) Positive news from global market, especially from US.
(4) The global and Malaysia economy are recovering, the bull trend will continue to sustain for the coming year. It can tells from the BNM interest rate.

I foresee this second triangle breakout will have more 'power'. However, if it really falls down, we will need to wait for the third attempt.

Happy investing, folks.

Tuesday, December 22, 2009

Unit Trusts Investment

What do you know about Unit Trust? If you know how to make profit from stock market, does it mean you don't need unit trust anymore? Or what do you think about Unit Trust? Are you already investing it?

Well, for me, Unit Trust is for long term investment. It is lesser volatile and risk than stock market. Of course, with lesser risk and volatile, the gaining percentage will be lower than individual stock when the market is good, while the losing percentage will also lower. With such system, you won't able to see much profit in short term compare to individual stock, no matter how good the fund performance is.

So why we want to invest in Unit Trust then? Simple, with 4 main reasons that I can think of.

(1) Affordable
Yes, this is always the first reason people invest in Unit Trust. With minimum of RM1,000 in Malaysia, you can invest an Unit Trust fund. And with only RM100, you can do dollar-cost averaging twice or once a month. What an affordable investment!

(2) Lesser risk and volatile
When stock market tumble, the best performance funds will always out beat the index. For example, index falls for 40%, the fund might only falls for 30% or less. So there is no way for you to make a loss in long run, good return is guarantee.

(3) Consistent return without knowing what you invest
You don't have to study individual company annual report, wait for quarterly earnings or broker report, perhaps only fund quarter report. You just need to pick the top performance fund/s and follow a workable system, then you will guarantee get good return in long run.

(4) No monitoring required
You don't need to invest your time to monitor daily or weekly price. You just need to make sure the fund you investing is still the top fund and bring you great profit, that's it.

I noticed many unit trust agents are not professional at all. They don't know what they are selling and they just want to earn commission. I talked to few friends of mine, and I verified my findings is true. I'll try to help them, so they can improve their investment return.

The rule of thumb is, you have to know what you invest, and react when necessary.

Friday, December 18, 2009

Glove Maker II

If you refer to my previous post about my recommended glove maker companies, you should have notice how glove maker companies perform during these correction period. They are just too good to buy/hold.

All the glove makers share prices are rising steadily despite the index correction and most of the shares are falling. Why? It's just very simple. These companies just continue to make a lot of money, by improving the capacity, productivity and efficiency, with the extremely high global demand from the H1N1 pandemic outbreak.

Just confusing me is that, I suppose the leader like TopGlov or Harta should be rising the most. But unfortunately, the laggards are rising the most, because people just like to fry their share price, like Adventa and Latexx. Let's see how long they can last.

With TopGlov announced it's latest quarter profit of nearly 100% than previous year quarter, it prove the extremely strong demand is still there. I believe this will continue until the end of 2010, or perhaps H1N1 outbreak is completely over. May be before the end of H1N1, there is another outbreak require the supply of glove again? It is possible, folks.

In conclusion, I will continue to keep my glove maker stocks and let the profit running, while tightly monitoring their movement. I will also try to clear out some non-performing stocks at a better price, and enter additional lots in my favorite glove maker stock soon.

Happy investing.

Tuesday, December 15, 2009

Breaking of Triangle Formation

Did you see that? KLSE index finally breaking the triangle formation that I mentioned about in my previous post, before the market close today. It indicating the bull trend will be continued to serve the traders.

Not only that, quite a number of leader stocks in my list are also already breaking of their formations these few days, including CIMB, TopGlov, PbBank-01, etc.
On the other hand, analysts claimed that these 2 days bullish were due to the good news from Dubai. But in view of the dead fish trading volume and index from KLSE, it doesn't affecting KLCI much, perhaps only to LCL.

I would say it's time to re-enter the market and reap profit now. We just need to take note the low volume traded, because many traders and fund managers are going for vacation these few weeks. Since they are not throwing the share, what we waiting for?

Happy Investing.

Friday, December 11, 2009

Triangle Formation

How's your stock investment portfolio going on? Did you manage to enter Affin or Affin warrant this morning? After Hong Leong Bank acquisition news was firmer and released on yesterday, Affin price is reverberated from 50% retracement, a pretty 7-11% quick profit. If not because of the mid-term correction, I believe it will be even higher.

Just to share with you. When I analyzed the price charts just now, I surprisingly noticed some of the prices have formed a triangle formation and ready for breakout anytime, including KLSE index. The time frame is about less than 2 weeks time.

That's means, the breakout would be the end of bullish, or continue to bullish after the 2nd mid-term correction. This is interesting. Well, let's see what will happens within the next 2 weeks.

Happy investing.

Wednesday, December 9, 2009

Easy or Hard Trading?

The market seems flappy and negative these few weeks, especially after the Dubai World debts incident. Even though analysts and my opinion are still positive with the current stock market situation, it's just disappointed these few days. It's weak and it's quite hard to aim for the right stock to take profit.

However, if you aim at the right stock with right time, you still can make profit from existing KLCI. Just look at Faber, it rises more than 10% within these 3 correction days. This is really an outstanding stock to hold. But in fact, how many of us can spot the shinning star during this correction period?

What I try to mean is, if it is so difficult to trade and make a profit, just don't trade for the moment. Opportunity is always there, we just need to wait for the right timing to go in again.


Sunday, December 6, 2009

Gold Investment

Guess what, everyone is talking about gold investment now. The old folks are talking about to buy gold for keeping, the businessman is talking about gold investment, aunties and uncles are talking about invest into gold account from banks, and even some people are working on gold investment direct sales. It exists if you just name it!

Gold investment became a hot topic recently, just because the demand is very high, it's price has growing from US$680+ to US$1200+ within 14 months. The return is about 70%+. Well, I was thinking of invest a little bit on gold when it was about US$900+. Unfortunately, I cannot do it online via local bank like stock and I'm just lazy to go to bank to do such transaction, I missed the golden opportunity to have some pretty return in such a short run.

Now you should understand why Brunei Sultan used gold to build His mosque, palace & toilet?
So, what is the outlook for gold price now? So far it is sitting safely on the top of US$1,200, and all analysts foreseeing it will continue to climb up to US$2,000-3,000 within 1 to 2 years time. From my technical analysis point of view, I believe it is positive. The strong resistant point of US$1,000 already became strong support point for now. From my fundamental analysis point of view, the demand is far exceeding the supply in long run, and it is like oil, they are mineral and they will be finished one day, unless people discovered something new and give up on them.

In summary, according to the past history analysis, I believe it is worth to invest in gold for long run, even it is at US$1,200 level. If you have excess money, it's good to diversify your investment and part some funds into gold.

Happy investing.

Tuesday, December 1, 2009

KLSE Will Continue to Up or Down?

Hi folks, is it consider quite okay that KLCI opened with 20 points lower and ended with 11.5 points lower on yesterday? Even though all analysts and experts clarified Dubai debts have nothing to do with KLCI, but most of the investors are worry and simply sell off their shares in a low price. This is what we called stock market, it totally acts based on emotion!

My stock portfolio profit simply gone down 30% in 1 day, how fragile it is. Okay, let's forget about my portfolio at this moment. With the index breaking of 30-days moving average and almost touching 50-days moving average, is it indicating the bull trend is ended?

I heard all analysts and experts reiterated mention that the bull trend is not end yet, and the selling pressure is not really heavy, KLCI is just temporary under correction. On the other hand, many investors thinking if they don't take profit or cut loss now, when it will be?

In my opinion, I believe the bull trend is still exist for KLCI, due to the followings:
(1) Index is still above SMA50, and the selling pressure is alleviated today.
(2) The global index are still positive. For me, KLCI is just a laggard index, and it will normally follows what people do.
(3) Most of the local companies are starting to turn loss into profit, some even making more money for 3Q09. It's just the beginning of the game, you don't tell me you are going to quit it for now?

But I don't anticipate index will shoot back to 1300 so soon, due to some reasons, which I might share with you next time. Be patient, folks, we are not looking for fast money here.

Happy trading. ;)

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