Monday, 7 January 2013

R U taking your Money in KLSE every week ??



Mkt has been up consecutively every week for the last 5-6 weeks in a row. Profit taking activities n stock rotation plays r expected to ran its course.

I would like to highlight that there r in fact 2 types of bull run. 

1.  FROM THE TOP
I prefer purebull run from the TOP, more specifically amongst the new recent cycle highs. I did a portfolio performance analysis based on strategy types. The result shows very good chance of consistently high speed success rate for this 'niche' play - In a Blue Ocean space. Let's why I zero in into this 1 class this season with the power of Gap Up Strategy. I am confident I have a well defined methodology to seize this opportunity n at the same time handle Risk with a clear 1 sell out/cut loss floor price for every stock. 
Bottom line is, 
If I am Right, I will continue sitting on the position till 1 Best guessing price to sell all. 
Or if wrong, rush in to give it to the buyers soonest possible. This is to limit Risk if the price slides back to the floor price = failure swing = RAN for life!

Our 'financial warehouse' is for storing profitable stocks. As a matter of fact  stocks can be moody n is highly 'perishable' in nature.   

2.  FROM THE BOTTOM
This way is from the low/bottom up among the weakest n recent most bearish stocks.
After 5 weeks of mkt uptrend, the sentiment in general becomes pure bullish for all stocks. Stocks r fairly similar to all children born in the same year. Given good food n nurture they will all grow up in heights except that some r shorter or fatter. We r seeing some purebear stocks performing so well now. Of course those who faithfully held on to them r so happy. It can be a rebound with spike or spurt of up prices. Many will end in volatile fashion n they will struggle for quite awhile before finally able to go uptrending again. 

A good example is Genting. It took almost 3 months of 'torturous period' from lowest price. n just last Fri Jan 4th it went up decisively above 940. It is finally on its way to uptrending again...  Genting could still show old behaviour with wild swing anytime because the volume transacted is low n not empowering enough.

It is ironic that this strategy is high risk. Past experiences found that many stocks end in losses using this buy low strategy. Worse still they jam packed the 'warehouse' n having to monitor losses full time !  


Nice to do some harvesting n re-balancing act last few days. 
UMW 10.34   out at 11.58. Too early but can fund other stocks on the way. 
EON 12.12    out at 14.12  At Window dressing price.
IHH 3.33      out at 3.40.  Slow, could be due to rich AhPek not willing to enter hospital biz.
HLFG 13.00   out at 14.24
ADVENTA 36 out at 48. A fast replay of previous CIHLDG model.



No comments:

Post a Comment