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.

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.

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.

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.