Trading Notes for 2010-09-03

§168 · September 3, 2010 · PLUS (5052) · (No comments) ·

Not exactly a very good start for September, as my entry point into PLUS at 4.14 yesterday proves to be rather untimely.

2010-09-03-PLUS-intraday-chart

As you can see from the intra-day chart above, the price took a good beating 20 minutes after the bell. The selling finally came to a halt at the 4.04 point, losing 0.10 in just the first trading session.

2010-09-03-PLUS-half-hourly-chart

In the 30-minutes chart above, we can observe how the volume was building up after the price touched the day’s lowest point (4.04). RSI was well below 50 for the most part of the day, and at 1600hrs, we see the MACD crosses each other, and it was followed by a spike (from 4.13 to 4.20). Momentum was below 100 for most part of the day.

2010-09-03-PLUS-daily-chart

From the daily chart above, the uptrend is still intact. But I will have to put a tight Stop Loss at the 4.21 resistance level.


Trading Notes 2010-09-02

§163 · September 2, 2010 · PLUS (5052) · (No comments) ·

Took a position in PLUS today at 4.14.

2010-09-02-PLUS


Trading Notes for 2010-08-26

§155 · August 26, 2010 · Bursa Malaysia, GENM (4715) · (No comments) ·

As mentioned earlier, I decided to switch my trading from OSK to Jupiter Securities.

As with all changes, I needed some time to get used to the toolkit. In the Charting section, I have to admit OSK’s platform is much more established and comprehensive. However, Jupiter has a better user interface and is a much more user-friendly application. Price stats are also accompanies by visuals charts which makes it more ‘entertaining’. The historical data are hosted by NextView. Had some problems with the login process, but clearing the Temporary Internet Files and cache in Internet Explorer solves the glitch. Yes, you must run Jupiter’s trading platform via Internet Explorer. The Charting tools could really do with some more improvements, especially when it comes to adding trendlines and annotations. I noticed that each time I draw my trendlines, the lines would move unpredictably when the chart is updated, especially if I am charting on a 5-minutes chart. I would suggest that they do not refresh the chart until users manually click on the refresh button.

Now, back to the market.

I exited the market at 11th Aug at 2.80, taking a little profit. Tracking the next few days after I’ve exited, the price continue downwards to 2.73.

2010-08-26-GENM

On 16th Aug, price closed at 2.84. On 17th Aug, price opened at 2.83, and shot up to close at 3.09 for the day.

Two weeks ago (10th August), Genting Singapore said second quarter profit soared to S$396.5 million (RM916 million) from a loss of S$50.7 million (RM117 million) a year ago, while revenue surged to S$979.3 million (RM2.26 billion) from S$120.1 million (RM277 million) before. It also said EBITDA for the quarter was at S$513.9 million (RM1.19 billion) with margins of 52 per cent.

Read more: A tale of two Gentings http://www.btimes.com.my/Current_News/BTIMES/articles/genx-2/Article/index_html#ixzz0xgloX358

Here’s an excerpt from Singapore’s Straits Times…

ITS BATTLESTAR Galactica roller coaster may be grounded, but Genting Singapore shares rocketed 14 per cent to a record high of $1.46 a-share yesterday, after one of its busiest day of trading.

More than 683 million shares exchanged hands on Friday, which is almost seven-times the counter was traded on Thursday, when the gaming firm announced a blow out second quarter performance.

Earnings for Genting Singapore had shot up dramatically from a $51 million loss a year ago, to $396 million in profits in the three months ending Jun 30.

The better-than-expected result was driven by a spectacular showing from Resorts World Sentosa (RWS) – the firm’s crown jewel in Asia, and the first integrated resort (IR) to open its doors here.

RWS spokesman Robin Goh told The Straits Times that each month, more than a million people visit the IR, which houses among other attractions, the Universal Studios Singapore theme park, six hotels and the first casino here.

‘Two-thirds of the guests to the casino are from overseas including Thailand, Vietnam, Malaysia, Indonesia, Japan, Korea, China and India,’ said Mr Goh, who added that RWS remains on course to exceed its 13-million visitor target for 2010.

Looking back, the spill-over effect from Genting Berhad was not entirely unanticipated, but I was out of the market for a short vacation. The uptrend last for a week, and price dropped below the uptrend line to close at 3.04 on 25th Aug. The blue line shows that price is testing the downward trend. It has not breached below that yet, but if it does, it signals that price will continue to slip.

That’s all for now. By the way, Jupiter Securities only allows you to trade when you have cash in the account. So, make sure you wire your money into your account before you start ordering your ‘meals’.


Trading Notes for 2010-08-12

§151 · August 12, 2010 · GENM (4715) · (No comments) ·

GENM continues its downtrend. Opening at 2.77, the price continue to drop to 2.73, before closing the day at 2.74. Volume is relatively low for such drastic price movement, only 22K shares done. It was a good call to have sold at 2.80.

2010-08-12-GENM


Trading Notes for 2010-08-11

§144 · August 11, 2010 · GENM (4715), Malaysia Online Trading Platforms · (No comments) ·

The anticipated break-out into 2.90 did not materialize and sentiment weakened with low volume.

2010-08-10-GENM

Price continue to go south after the peak at 2.88. The peak was touched twice on 5th Aug, before the downtrend begins.

As mentioned earlier, my support level was at 2.80, and if breached, I will dispose all inventories. And on 10th Aug, around 10.15am, the support level was tested, and breached 2 hours later to 2.79. I had a Stop Loss order with the remisier, but I was curious why it wasn’t triggered. At this point of writing, you cannot execute a Stop Loss order automatically from the online trading pad…which I really detest. This is one of the most important risk management tool, yet it’s not available and accessible directly by retail/online investors. I cannot imagine how much profits was lost because investors could not alert their remisier to take profit when the pricing has reached their support levels. As the saying goes, anyone can enter the market, but it takes a professional to know when to exit.

I continue to follow up on the price’s movement for 10th Aug, and it went all the way down to 2.78 before closing at 2.80 for the day (16,957 shares done). The push is relatively weak with very little volume (4,000 shares).

It seems that the low volume for the past week is attributed to investors abstaining from the share market due to the beginning of the 7th Month (Chinese Lunar Calendar).

2010-08-11-GENM

As the market opened this morning, I managed to sell at 2.80 in the first 10 minutes, before price spiked temporarily to 2.81 (110 shares traded). After that, it’s all downhill, with the price dropping to 2.77. Minus all brokerage fees, I managed to make a meager 3.32% on this trade (6th July to 11 Aug). The brokerage fees involved is exorbitant.

Note: The OSK remisier was adamant to keep RM28.00 of brokerage fee per contract, which I think is too much- she adds very little value to the entire trading process. Besides, she wasn’t honest in her dealings. She promised that if I had money in the account and trades online, I could reduce my brokerage fee to RM12.00 per contract. Next, she slapped an RM40.00 brokerage fee when I sold my holdings in GENM today, her reason being my total transaction is below RM7,000. All these hidden charges always makes me think twice when dealing with these brokerage institutions. I remember a friend used to describe these brokerage firms and investment bankers- “They are just like vultures.” How true, their life support system depends on the cut they get out of investors, regardless if they add value or not. Anyway, that’s my last trade with OSK.

Need to look for a new trading platform, and it seems Jupiter Securities Sdn Bhd is highly recommended amongst fellow traders in Malaysia. Am in the process of opening an account with them now.


Using Oscillators

§141 · August 7, 2010 · Alexander Elder, Momentum Oscillators, Technical Indicators, Trading Wisdoms · (No comments) · Tags:

A rule of thumb with oscillators, when in doubt make them shorter. This is the opposite to trend-following indicators, when in doubt make them longer.


Momentum and Rate of Change (RoC) Explained

§139 · August 7, 2010 · Momentum, Smoothed Rate of Change, Technical Indicators · (No comments) ·

When Momentum or RoC rises to a new peak, it shows that the optimism of the market crowd is growing, and prices are likely to rally higher. When Momentum or RoC falls to a new low, it shows that the pessimism of the market crowd is increasing, and lower prices are likely ahead.

Alexander Elder, Trading for a Living


Trading Notes for 2010-08-06

§131 · August 6, 2010 · GENM (4715), PARKSON (5657), TOPGLOVE (7113) · (No comments) ·

Volume has not reached below the 10K shares level for the past few weeks.

The last time that happened was on 14th May 2010, where volume dipped to 9,638 shares. Price closed at 2.810. This drop in volume coincided with the forming of a valid head-and-shoulder pattern, which gave a clear signal of an impending downtrend. And south it went, price dropped 30 sens to 2.510 (200K shares traded) on 26th May 2010, before rebounding hard to 2.71 two days later on 1st Jun 2010.

If the historical trend is any indicator, price should fall sharp in the next 2-3 days. My Stop/Loss price should be lifted up from 2.80 to 2.83 to lock in any extra profits should the downtrend really starts.

On another note, activity for most shares has been unnaturally low today.

2010-08-06-GENM

2010-08-06-TOPGLOVE-weekly-chart

TOPGLOVE’s recent rally came to a halt, and has been going down consecutively for the past 2 weeks. It seems like a head and shoulder forming. Resistance at 7.23 was not breached in late June and early July. Support level is at 6.13, which leaves quite a huge room for price fluctuation. Should price fall below 6.13, we should expect the price to continue falling towards the next support at 5.38. Any bullishnessl seen below the 6.13 could be a BUY signal. If the price remains above 6.13, it would be better to HOLD your position.

2010-08-06-TOPGLOVE-daily-chart

On the Daily Chart below, we see that the price has gone below the trend line, signaling a potential downturn in price…

And here’s a look at PARKSON, there was no movement until later part of the day, increasing 1 sen before closing for the day. 12,271 shares done, significantly the highest volume in the past 14-trading days. For comparison, the past 4 days, volumes are at 2,880, 4,494, 4,477 and 4,121.

2010-08-06-PARKSON


Words of Wisdoms

§123 · August 5, 2010 · Bill Cara, Trading Wisdoms · (No comments) ·

Traders have to prepare by examining as many of the factors that push and pull prices higher and lower. These are the so-called ‘drivers’ we talk about all the time in the blog: macro-economic data, corporate fundamental, technical and quantitative data, interest rates, commodity prices and forex.


Trading Notes for 2010-08-05

§117 · August 5, 2010 · GENM (4715), PARKSON (5657) · (No comments) ·

Price opened at 2.87 and spiked to 2.90 for about 15 minutes. Price fluctuates at 2.86 and 2.87 until 1650, where the price spiked to 2.88 and closed. Volume is higher than the past 2 days, only slightly to 28,026 shares done.

2010-08-05-GENM

PARKSON traded between 5.48 and 5.57, and closed at 5.54. Same spike occurs at 1650hrs.

2010-08-05-PARKSON


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