Nasdaq In Correction Territory, What To Do Now? Our Game Plan

7th March, 2021, 9:48 PM

Nasdaq In Correction Territory, What To Do Now? Our Game PlanNasdaq 7th March 2021

Chart Source: Poemsview 7th March 2021

The past two weeks probably wasn’t the best for traders who went long as market globally started to pullback. The Nasdaq pullback to correction territory down about 12% since the peak. A correction territory is usually defined as a 10-15% pullback. How far more and how long would this correction last? No one can really tell, but we can shed some light and share some our plans during this time.

Markets came off probably due to some reason like the 10 year yield moving up, and for why Nasdaq came off more than the overall market? It could be funds switching out to more cyclical stocks as the economy improves with an the covid vaccine being rolled out. With the sell down, traders who were over leverage probably got hit and were being forced to close off their positions, algo trading, shortist also joined in the party which made the drop even faster.

So what should we do? Well, it depends on what you are?  A trader or an investor? Don’t get these two terms confused. If you do, you might end up with very confusing results.

For an investor, investing in the longer term like 4-5 years time frame. You’ll have to ask yourself, did the company I invest in changed fundamentally over the last two weeks? What has really changed over the past few weeks? Is this an opportunity to scale into your favourite stock? (of course ensure that they are strong stocks, like a good cash flow, positive earnings, good economic moat.) An example would be TESLA. When tesla was trading at a high of $900, were you considering to invest in it? IF you did and  TESLA dropped to as low as around $550. Did you think of entering or were you scared? Fear often leads us to think illogically and act irrationally. Ask yourself what changed in TESLA over the past two weeks, did their vision change? Did something bad happen to the company? In such times, relying on your research and conviction is important.

For investing, we usually prefer to scale in in about 4 batches and not move in all at once. Nobody knows where the bottom will be and we can use technical analysis as one method to help us time a better entry.

Nasdaq Technicals 

We saw a nice rebound last Friday and probably a little overdue too. It came off the horizontal support of around 12233 and showed a nice bullish closing, closing above the 100ema. Will the market continue to rebound? The next important level to watch would be around that short term downtrend line which is around 12900. If it can sustain its footing around there we might see a more sustained rebound. If not the downside might continue which might take us down to the 150ema around 12100 then to 11800. A sustained rebound might take us to around 13300 to 13500.

This once again present opportunities for investors to scale in on good stocks like Apple, Amazon, Salesforce, Facebook, Meli and many more.

A consolidation at key support or resistance levels would be more ideal as this is like market storing power or resting before the next leg up.

As for traders, they are concerned with the volatility in the market and having a proper trading plan is important in such a market. If you fail to have a stop loss and keep picking up your contracts then that would not constitute a disciplined trader. Traders take advantage of the short term spikes in the market and are not overly concern if a company is overvalued, undervalued whereas an investor would pay more attention to these points.

So are you a trader or investor? Be clear of what you are so as to have a clearer results.

As for us, we are looking at this pullback to pick up some good stocks for our long term holdings (we’re talking about years ya) and looking to place some short term trades when market have found support.

Will update more in the coming days. Share with us if you’re a trader or investor.

Yours

Humbly

Kelwin&Roy

 

 

January Went Very Well Until This Happened!

1st February, 2021, 7:18 AM

January Went Very Well Until This Happened!

We hoped the month of January went well for everyone as market saw a nice up movement from the start of Jan.

Jan started off well as market was hopefully that vaccines are starting to roll over in the world and hopefully we’ll be one step closer in defeating this virus. Market was also looking forward to a change in President as Joe Biden took office in hopes that he’ll be not so crazy as Trump and having a more moderate approach towards China. All these  led to a good three weeks for Jan then this happened. This translated into a nice rally for the global markets with stocks like IFAST even making a new high.

But as they say all good things have to come to an end. We saw market showing signs of weakness from the third week of January and alerted our EXCLUSIVE CLIENTS to be cautions moving forward. Check it out over HERE! As market started to pullback we also had to cut loss. Nothing to hide here and we don’t want to paint a picture perfect scenario where its all win and no loss! IMPOSSIBLE!

No shame as we alert our EXCLUSIVE CLIENTS regarding the stop loss so that they are aware of the stock’s movement. It is always crucial to have a trade plan, knowing the entry price, your stop loss and target price so you won’t be taken a back if things go south. You’re mentally prepared which would translate to a better and more positive results.

Want be have such a reliable remisier? Want such updates sent to your handphone straight so that you can trade with ease and peace?

Then be our EXCLUSIVE CLIENT and find out how you can be included in our whatsapp broadcast list.

See you onboard soon!

Yours

Humbly

Kelwin&Roy

Peace Out, 2020!

28th December, 2020, 7:05 AM

Peace Out, 2020!

Image Source: Mothership.sg (beautiful double rainbow spotted in S’pore on Christmas day)

We’re going to keep this post short and sweet as we all know how 2020 has been for world. No words can probably describe how this year has turned out and we’re glad to have made it through.

The pandemic as opened our eyes to the things we have taken granted for, like just a simple handshake or even a meal with the family. Covid-19 has definitely changed the way we live and interact. As 2020 draws to a close, lets take some time to pause , reflect and be thankful for just making it through.

For some of us, we are able to find the silver linings and positives out of this entire experience. For some, its a year to forget. 2021 will bring new opportunities so lets look up, don’t grow weary and lose heart.

We are thankful for family and friends rallying around us this year. We are also equally thankful and grateful for all your support through the years having seen our ups and downs! We’re looking for greater communication, more value added services in order to enhance our client’s investment/trading journey for next year, so stay tune for that.

Let’s be hopeful,  continue to lookout for one another, adapt, persevere and encourage the weary. We look forward to partnering with you all in 2021.

Yours

Humbly

Kelwin&Roy

Apple (AAPL) – [ Looking For A Break Out?]

1st December, 2020, 5:19 PM

Apple (AAPL) – [ Looking For A Break Out?]Apple 1st Dec 2020

ChatSource: Tradingview.com

Apple(AAPL) was trying to break out from the triangle last night with some volume. It does look like it has some potential in an up move in the coming days as there was volume supporting the break. Apple has to stay above that downtrend line of around $120 and if it manages we might see $125 then $129.

The support would be the uptrend line at around $119 and if it breaks that then we might see $109. We’re leaning towards the bullish side for apple. Lets watch.

Yours

Humbly

Kelwin&Roy

ComfortDelgro – [ Riding The Recovery Wave, Is It Time To Take Profits? ]

18th November, 2020, 7:17 AM

ComfortDelgro – [ Riding The Recovery Wave, Is It Time To Take Profits? ]

ComfortDelgro 18th nov 2020

Chart Source: Poemsview 18th Nov 2020

Hard hit stocks relating to tourism like SATS, SIA and even Comfortdelgro saw a nice rebound in the last few session as news of potential vaccine crowded the headlines. Transport, hospitality, airline stocks all had some nice gains as investors started to rotate to these stocks on hopes of recovery.

Comfortdelgro part of the STI component was a stock that we were eyeing for a recovery when a vaccine is found as demand for taxi would start increasing as people start to travel more and tourist starts to come back too. We saw some positive price action at around $1.49 just last Wednesday and alerted our EXCLUSIVE CLIENTS as shown above!

We’re glad Comfortdelgro had a positive move up reaching our 2nd price target of $1.61 gaining 8% in a week! It is currently at the 200ema and given its a long term resistance, we won’t be surprised if it takes a break first before continuing on its journey to $1.68 and maybe even $1.79. So taking some profits here is not wrong to us. =)

Want to cut through the noise and get such trade alerts straight to your handphone?

Then be our EXCLUSIVE CLIENT and find out how much value is waiting for you!

See you onboard soon!

Yours

Humbly

Kelwin&Roy

Gold – [ Let’s Talk More About It And Where It Might Be Heading Towards Part 1 ]

27th October, 2020, 7:07 AM

Gold – [ Let’s Talk More About It And Where It Might Be Heading Towards Part 1 ]

Chart Source: Poemsview 27th Oct 2020

GOLD! I’m sure most of us are not stranger to that word and have some interest in it. Gold is generally consider a safe-haven asset whenever markets are volatile and uncertain. The demand for gold is usually driven by market instability. We can see how much gold has risen ever since covid-19 hit causing one of the greatest rally in gold. Gold usually has a negative correlation to other assets like stocks and bonds but in recent times are we see US market trend up, gold has been on a steady climb. So remember to watch the charts and not just listen or read information without looking at the charts.

So are we too late into the gold rush? Let’s take a look at the charts to help us answer that. Currently gold is in a consolidation. With a lower support at around $1850 and and upper range of around $1931. Its below its 20 & 50ema of around $1907 so moving up above it is a first positive sign. It is also slightly below the short term uptrend line but regaining its foot above it at around $1914 would be another positive sign.

Biden and gold. So what will happen if Biden wins the US election? His plan for a huge stimulus might see gold prices moving up. Bigger stimulus might cause a weaker USD in the near term and has money is being pumped into the system inflation might start to creep in. Gold is usually a hedge for these events and we might even see gold retesting the high of $2000.

Next question would be how to invest in gold? We’ll cover some ways to invest in gold in our next blog post so stay tune!

Meanwhile, keeping a close watch on gold.

Yours

Humbly

Kelwin&Roy

DBS – [ Nice Rebound From End Sept , Could The 10 Year Yield Curve Give Clues On Where It’s Heading?]

26th October, 2020, 6:55 AM

DBS – [ Nice Rebound From End Sept , Could The 10 Year Yield Curve Give Clues On Where It’s Heading?]

Chart Source: Poemsview 26th Oct 2020

DBS saw a nice rebound of about 8% since we posted near end Sept. Back then we were anticipating some rebound from our three local banks which we’re glad played out. DBS having the biggest percentage gain of all the three. It managed to breakout from our initial rebound target of $20.80 and head north towards the 200ema.

From a technical point of view the 200ema is a considered the long term resistance and is also a strong one. The last time DBS tested it was back in June but couldn’t really sustain holding above it. So now the real test is breaking above it and staying above it for about 2-3 days at least in order to see some nice upside. A rest around here would be what we would like, storing some strength for the road ahead  would be our preference. IF DBS breaks above the 200ema, our next possible target might be around $22.2o area.

Souce: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

The 10 year yield rate is seeing a steady increase for the past week, taking it a 4 months high. This bond tends to signal investor confidence too. When confidence is high, prices for the 10-year drops and yield rises. This is because investors feel they can find higher returning investments elsewhere and do not feel they need to play it safe. This is just a simple explanation on it as there are many factors surrounding it too.

Watching DBS and the other two banks closely. Are you watching them too? Let us know your thoughts on it!

We hope you managed to pick up some points on the banks when we posted last month!

Yours

Humbly

Kelwin&Roy

 

ISDN – [ Broke Out? Can It Move Up Further? ]

20th October, 2020, 1:16 PM

ISDN – [ Broke Out? Can It Move Up Further? ]ISDN 20th oct 2020

Chart source: Poemsview 20th oct 2020

ISDN looking good as it has broken above its horizontal resistance of $0.415 with some volume.

Could it stage more upside? It tested the $0.415 resistance just a few days back but failed to break it. From a technical analysis point of view, today seems a little different as it gapped up came back down to test the support and is back up now. If it manages to stay above this resistance turn support we might see more upside.

We have drawn the support and resistance levels for ISDN, keeping a lookout! Don’t forget election is around the corner. So always have a trade plan!

Yours

Humbly

Kelwin&roy

US Markets And The Upcoming Election In Nov

1st October, 2020, 6:24 PM

Image source: express.co.uk

As we all know by now that the US election is just about 5 weeks away and the heat is on as 3rd Nov draws closer.  As we all witnessed the president’s debate yesterday which turned out to be a  more of a bickering session where both people hurled insults and repeatedly interrupted each other. One would probably get very little out of yesterday’s debate other than some entertainment value.

At a point in time Mr Biden even called Mr Trump a “clown” and told him to “shut up” and Mr Trump questioned Biden’s intelligence. What a debate!

Issues like handling covid19, racism were hardly rationally debated as both kept on squabbling that the debate moderator had to intervene.

Market couldn’t get much out of the debate and futures started to sell down after that only to recover on news of stimulus.

For now polls show Mr Biden leading and Trump has probably has to take the rest of the debate seriously in order to swing votes to his side.

Now what can we expect from now till Nov? VOLATILITY! As the race to the white house is not conclusive yet, both parties stand a good chance to win. As such, market could swing during this period so do be aware. As Trump is pro market, pro business if he’s firmly in the lead, markets could favour that. On the other hand, if Biden is in the lead, market might not like it as they will have to adjust to a new president, new policies and more regulations.  Election news might overtake covid news for the time being as traders shift their focus for the time being.

-So for short term traders, do be nimble, adjust your expectations during this period. Don’t be greedy during this time or stay out when it’s too uncertain.  Gold could also be a trading idea as some might flock to there for safety.

-For longer term investors, take the chance to position yourself during the dip on strong companies with good fundamentals.  In the long run, market tends to move up. Index ETFs are good alternatives if single stock exposure is not your cup of tea.

So what happens if Donald Trump wins? 

  1. As trump favours deregulation, low interest rates environment, low tax rates so those industries like financials, traditional energy , military (Lockheed Martin) and healthcare like GSK and Pfizer might benefit.
  2. Sector to avoid would probably be some China tech that Trump has aimed. As there is uncertainty in Trump’s policy on the trade war and it might be better to avoid those companies with China exposure or manufacturing in China as these companies might suffer from the tariffs
  3. We might see some certainty in the markets as Trump is pro markets and always credits himself for how the market has performed. S&P has made an all time high despite Covid, got to give it to this man. Traders are also used to Trump’s way with the exception of an increased post election trade escalation and of course his famous tweets.

So what happens if Joe Biden wins? 

  1. As Biden is more for tax hikes, regulations or some even say anti-growth, this might take a hit to the markets. Plus the fact it’s a new President and markets dislike uncertainty.
  2.  Biden is also more for renewable , sustainable energy, infrastructure and manufacturing. He focus on environmental issues so companies related to clean/renewable energy like solar could benefit.
  3. Financials could be affected due to more regulations and tax  hikes.
  4. Although Biden’s trade war stance is not as erratic as Trump’s he had not committed to removing the tariffs.

It’ll be an interesting month leading up to the elections so stay tune as we update more on index in the coming days. Stay tune.

Yours

Humbly

Kelwin&Roy

GE2020 – Polling Day

10th July, 2020, 8:11 AM

Image source : Straits Times

Its 10th July 2020 and Singapore will head to the poll today as voting commerces.

As such, Singapore stock market will be closed and will open on Monday ( 13th July).

We’ll give more updates on the singapore markets during the weekend. Look out for that

Meanwhile, take care and stay safe.

Majulla Singpapura!

Yours

Humbly

Kelwin&roy