An early Happy Chinese New Year to all readers. This is the year of the snake. The popular CLSA index is out. The report is here for your reading pleasure. This is a "tongue-in-cheek" guide so treat it with more fun than seriousness.
Sunday, 3 February 2013
Ever since my last update on STI, it has been moving northwards and towards record highs. I have not been trading actively due to a busy work and travelling schedule and has missed the small caps run up in January as well.
The small caps are having a field day. They are taking turns to do the run up. I will be very wary when small caps without sound fundamentals are doing their run ups. I only have one "advice" if you like to play small caps, that is, don't be the last one to hold the babies.
For all bull runs, the small caps will typically be the 'last to run' as the smart money rotates out of blue chips into the small caps. It is easy to be carried away. Please don't get me wrong, you can make a lot of money playing small caps but you must know when to "walk away" and call it a day as well. I will probably be very alert if i am punting small cap stocks.
Happing trading. :)