CLSA Fengshui Index 2013

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.

Small caps

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. :)

STX OSV

STX OSV

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I spotted this yesterday at 1.325 (before it closed at 1.34). Didn't manage to buy as i hesitated too long since i was still expecting to see a STI correction in the coming days. It has a nice bullish divergence between price and the various indicators. The first target for this rebound should be around 140-145. Don't think it will go below 122 since that was the M&A transacted price.

Some of my previous recommendations (such as Noble, Capital Retail China, Sembcorp Marine, Sembcorp Industries) have hit their second targets so you either take profit or remember to put trailing stops to them.

Happy trading.

STI Update

Just when I said STI has turned into a sell for me on New Year's eve, it got a big boost from the "fiscal cliff" or the lack of it and fly up to the sky. hahaha

STI formed a doji today. It is an indication that the bulls and bears are "fighting it out". Watch out for a potential formation of the evening doji star.

My view remained the same that upside is limited with downside potential in January. I will not 'chase' the STI stocks (generally speaking) and the previous correction target remain the same. Let's see how it pans out in the coming days.

Happy trading.

Straits Time Index

I am back after another trip last week.

While i was overseas, it was interesting to read "bullish headlines" about how the market will gain another 25-30% or resumes its uptrend in 2013. As usual, the crystal ball grazing provides tons of fun but little value. In fact, it might act as a good indication of an imminent correction that always occur whenever the headlines of local newspaper turned bullish (the reverse is true as well).

STI has turned into a sell for me today. My first target is around 3100, followed by 3050.

Hope all readers have a happy and prosperous 2013.

Noble Group & CapRetailChina

Noble

Noble hit my first target of 115 last week. My earlier post is here.

CapitaRetailChina

Hit my first target of 1.60. My earlier post is here.

Recap - Sembcorp, Sembmarine, Noble and Olam

Just to a quick recap of the various positions i mentioned last week plus olam.

Sembcorp Industries

My initial post was here. The stock hit my initial target today. Still looking strong. Let's see if it can hit the $5.30 - $5.40 target in the coming days.

Sembmarine

My initial post was here. Hit my first target today. Let's see if can reach $4.70 - $4.80.

Noble

My initial post was here. The counter was actually on trek a few days back when it touches 1.11 but unfortunately, i think it was also dragged down by the muddy waters incident. My view of a rebound back to 115 is still intact.

Olam

While this is not exactly my favorite counter in terms investing, it is nevertheless "too late" to short now unless you see a meaningful rebound back to $1.80 area or a decisive break below 1.50. In any case, there are no scrips available and from what i understand, the scrips were loaned out at 10% p.a. I think a short squeeze for a rebound back to $1.70-1.80 is on the cards. The Muddy water report has been released and the link is here --> http://www.muddywatersresearch.com/research/olam/initiating-coverage-olam/