Stock Market

7 Reminders During A Correction

Kelwin & Roy Stock Market
27th January, 2022, 5:12 PM

7 Reminders During A Correction

To put things into perspective, in 2021 we didn’t have any major correction, just about 8 shallow pullback of about 5-8%. So when it might get uncomfortable with a correction but we’ve written something to help

7 Things To Remind Ourselves During A Market Correction:

As the market corrects months before the first rate hike, these are some things we might want to remind ourselves:

1. When market was up and we wanted to chase the price to buy a good company stock, now that prices have retraced, why are we fearful and running away? What has fundamentally changed?

2. Define your investment horizon. Remember, whenever you’re investing, it should be funds you don’t intend to spend in the next 4-5 years. And if this fund is for the long term then learn to endure pullback, corrections and crashes. Funds meant for short term usage shouldn’t be used to invest.

3. Huge gains are made during the pullbacks and volatility. Imagine if you got in around march 2020. =)

4. Going through a correction is one of the toughest things to do, with media outlet splashing doomsday news, things always feels like they’re going to worsen. Hold strong and believe in your conviction.

5. The benefit of having a long time horizon is that you don’t have to try to time the bottom when buying in a sell off. No one can time the bottom, if they could it’s probably luck or they’re lying.

6. Every sell off is a buying opportunity. From history, with every sell off, market moves higher. S&P is higher now as compared to 2020’s crash.

7. The reason for a sell off doesn’t really matter. There can be a thousand and one reason why market is selling off. Fed rate hike, inflation, coivd-19, political tension, Ukraine/Russia tension. In a grand scheme of things, these could be noise to the markets and markets will find ways to resolve it. Market could be throwing a tantrum, who knows?

As always, if you have any questions feel free to drop us a message.

From Kelwin & Roy

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Kelwin & Roy Stock Market ,
6th January, 2022, 7:48 PM

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Salesforce.com (NYSE:CRM), the industry leader in cloud-based customer relation solutions, provides enterprise cloud computing solutions focused on customer relationship management (CRM).

It has recently fell over 25% from Nov high due to its latest earnings and guidance that was released on 30th Nov. Investors were disappointed and selling took place. The fall from last night could be due to  an analyst Karl Keirstead of UBS downgrading shares from buy to neutral, and decreasing the one-year price target from $315 to $265.

In July2021, Salesforce completed the Slack acquisition setting the company up as a juggernaut of the workforce communication solutions. Its future is looking brighter!

Salesforce posted a record $6.86 billion in top-line revenue in third-quarter fiscal 2022, up from $5.42 billion for the same period in the prior year and an increase of 27%. For the full fiscal year 2022, Salesforce expects revenue of $26.4 billion, a 24% jump from fiscal 2021. Revenue is expected to reach $31.7 billion to $31.8 billion in fiscal 2023.

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At current price, Salesforce is about 20% undervalued which represent a good opportunity to scale in.

The company has a history of growing acquisitions by integrating them into its cohesive ecosystem of offerings. This bodes well for the Slack acquisition, which closed in fiscal 2022. The goal of $50 billion in sales by fiscal 2026 is well within reach as revenues continue to grow impressively.

Salesforce is a leader in its industry and will continue to execute and make gains for shareholders in the future despite the short term pull back.

Technical Perspective 

We can see that the moving averages are sloping down which to conventional teaching means bearish. But if you’re a long term investor, these wouldn’t matter too much especially if you’re investing in a solid company. A good point to scale in could be around $222-230 level as a first batch. Should the support of $222 don’t hold, the next level might be around $208 where an investor can consider a second batch entry. $200 seems a bit tougher unless we see a big pullback in the markets. Investors might take this short term pullback to scale in to good solid companies.

For traders, an entry at the support would provide a good risk reward ratio as indicators are starting to signal an oversold situation too.

Are you watching Salesforce?

Yours

Humbly

Kelwin&Roy

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Stock Market
19th December, 2021, 1:32 PM

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

Markets ended the wild week on the down side after Fed’s statement of a faster tapering and more rate hike in 2022 initially sent the markets up but worries of a tighter monetary policy and the ongoing pandemic, leading to a losing week for the major averages.

Shares in Chinese healthcare and technology firms tumbled after a report that the United States would add more Chinese firms, including the largest commercial drone maker and biotech firms, to investment and export blacklists this week.

What a week it has  been.

Key Events to Watch For 

Tuesday – US producer price index , this measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

Wednesday – US core retail sales and US retail sales

Thursday – Initial Job claims , this measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

We need to see the support for S&P holding if we want to see any last minute rally for the year.

Technical Levels to Watch For This Week

STI

Chart source: AdvisorXs

STI wasn’t spared the sell down and is sitting precariously on its double support. The horizontal support and the uptrend support line. There is a volume increased which might favor the downside and if that support breaks it is possible for a retest of around 3033 area. Its not looking good for STI now. Be prepared for further downside. It couldn’t cross the 20ema which is not ideal. Only our banks saw a push up.

HSI

HSI started well, above that uptrend line we drew but couldn’t break the 20ema. It broke below the trendline support as more Chinese companies were added to the US blacklist. Tech stocks also took a hit as inflation concerns continue to linger. It was a nasty week for HSI. The immediate support is at 23k but it does look precarious too. The next support might be around 22399.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

Are Banks Back In Play?

Kelwin & Roy Stock Market , , , , , , , , , ,
14th October, 2021, 7:52 PM

Are Banks Back In Play?

Are banks back in play? Lets take a quick look at the charts to see if momentum to the upside has returned.

Lets take a look at OCBC first.

Chart source: AdvisorXs 14th Oct 2021

OCBC Bank has broken above its horizontal resistance of around $11.64 which our clients were alerted on. From there we can see if move higher to our upside targets. A new upside move might be in play as banks are starting to come back in play. The big banks in US are also reporting results this week which might give a boost to our Singapore side if results are good. Volume is also starting to return as traders are starting to come back to the bank counters.

We might see OCBC move up to around $12 which is the gap resistance and a break of that might see it push higher to $12.24.

UOB

Image Source: AdvisorXs 14th Oct 2021

UOB chart quite similar to OCBC’s chart as it broke above its horizontal resistance of around $26.34. Volume started to come in yesterday too as our three local banks started getting more attention. If this level is able to hold, we might see it move to $26.90.

DBS

DBS is the only bank that has yet to break out. Will it breakout soon? Is this on your watchlist? We have drawn our levels what we are targeting. What will your trade plan be like?

As we can see, momentum looks like its returning to the three local banks with DBS lagging behind. Will it catch up?

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Yours

Humbly

Kelwin&Roy

Sinostar Pec – [ Start Of A New Uptrend Wave? ]

Kelwin & Roy Stock Market , , , , , ,
10th August, 2021, 7:30 PM

Sinostar Pec – [ Start Of A New Uptrend Wave? ]Sinostar Pec 10th Aug 2021

Chart Source: AdvisorXs 10th Aug 2021

Sinostar Pec is one of the largest producers and suppliers of downstream petrochemical products within 400km radius of is production facilities within the Dongming Petrochem Industrial Zone in Dongming County of Shandong Province, PRC.

It had some movement just over a week ago when we first spotted it and finally it started to show its true colours today!

A nice consolidation for the past few weeks led to a nice breakout with volume which resulted in a 8% upswing from our entry! With such a move , a new uptrend might be forming and 0.425 target is within sight now. With an increased in volume we might even see $0.45. Watch out for the break and momentum!

If you would like to know how to receive such trade alerts sent to your handphone, just drop us a message and we’ll walk you through it

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Yours

Humbly

Kelwin&Roy

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

Kelwin & Roy Stock Market ,
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!

Kelwin & Roy Stock Market , , , , , ,
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.

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See you onboard soon!

Yours

Humbly

Kelwin&Roy

Peace Out, 2020!

Kelwin & Roy Stock Market
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?]

Kelwin & Roy Stock Market , ,
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? ]

Kelwin & Roy Stock Market , , , , , ,
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. =)

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See you onboard soon!

Yours

Humbly

Kelwin&Roy