SPH Technical Analysis (31 Jan 10)

See it for yourself and make your own judgement. Two weeks ago, I mentioned that SPH is still at the resistance point and showing a short term double top scenario at $3.80. It seems that SPH is unable to break the $3.80 resistance. Looking at the MACD, RSI and Stochastic, it is not a time to buy in my opinion. Any uncertainty in the market may just trigger a sell down. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. I have mentioned my buy price at $3.37. If the price never reaches $3.37, then I will not buy at all. Knowing to position yourself in the market is very important for long term investor.

My stock gains/losses from Oct 09 to 29 Jan 10

No changes in my portfolio this week. Unrealised capital gain has decreased from $3875 to $2875 as compared to last week.

Cambridge Technical Analysis (28 Jan 10)

See it for yourself and make your own judgement. It may be reaching $0.60 as the first target. If that happen I will be selling all my holdings. Looking at the MACD, RSI and Stochastic, it may be not be the best time to buy in my opinion. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market.

Currently I am holding 25 lots of Cambridge at $0.415. Cambridge has just announce a dividend of 1.377 cents for 4Q2009. In my opinion the dividends given are quite stable for the year 2009.

SingPost Technical Analysis (26 Jan 10)

See it for yourself and make your own judgement. Singpost chart has been holding strongly to the support point at $1 and may be moving towards the double resistance poing. In my post "Investor, Traders and Speculators Charts", it really looks like a trader chart. Looking at the MACD, RSI and Stochastic, it may not be a good time to buy now. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. My target sell price is $1.15.

STI Technical Analysis from 25 Jan to Mar 10

Take my prediction as a pinch of salt. Remember my first rule, market direction cannot be predicted.

We have a long bull run from Mar 09 till now. The duration is about 10 months. I am predicting that the start of a short term correction should happen very soon. Looking at the MACD, RSI and Stochastic, these indicators are suggesting an overbought condition in the market. I am looking at 10% to 20% fall from the recent peak of 2900. With that, the index may fall till 2500 in Mar 10. However if you are buying now, my suggestion is try to avoid financial and property stocks, as they are overvalued in my opinion. Any uncertainty in the market may trigger a hard sell down on these stocks.

Currently I am waiting patiently for the correction to buy in more shares. If there is no correction, I will not put in any more position.

My Profit and Loss Chart from 3 Dec 09 to 22 Jan 10

The above is my profit and loss chart from 3 Dec 09 to 22 Jan 10.
Total P/L = Unrealised P/L + Realised P/L + Dividends Collected.

SuntecReit Technical Analysis (24 Jan 10)

See it for yourself and make your own judgement. As mentioned in my last analysis two weeks ago, I mentioned that SuntecReit is facing triple resistance. I also mentioned that by looking at the MACD, RSI and Stochastic, it may be the worse time to buy and best time to sell in my opinion. I am not saying my analysis is accurate but the price did fall from $1.42 to $1.34 during the last two weeks. I believe that any uncertainty in the market will trigger another sell down.

Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. My target buy price has increased from $1.10. If the price never reaches $1.10, then I will not buy at all.

My stock gains/losses from Oct 09 to 22 Jan 10

This week I have bought 5 more lots of SingPost @ $1.01. Unrealised capital gain has increased from $3200 to $3875 as compared to last week.

DBS Technical Analysis (21 Jan 10)

See it for yourself and make your own judgement. DBS is at the triple resistance point. The volume has been decreasing since May 09. Looking at the MACD, RSI and Stochastic, it may be the worse time to buy and best time to sell in my opinion. Any uncertainty in the market may just trigger a sell down. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. I have maintance my buy price at $13.00. If the price never reaches $13.00, then I will not buy at all. Knowing to position yourself in the market is very important.

CapitalMalls Asia Speculation play?

This is the price movement over a month.
Lowest Price on 25 Nov 09: $2.23
Highest Price on 11 Dec 09: $2.75
Lowest Price on 20 Jan 10: $2.35

Is this an example for short term speculation play? For those who had bought at $2.75 and hold it till now must be very nervous now, seeing his stocks falling about 19%. So at what price will it stop falling? Nobody will know.

As mentioned in my post "Investor, Traders and Speculators Charts", identify which types of chart a stock is currently in can save you a lot money.

ChinaFish is another stock to be careful of if you have intention to buy it now.

My Investment Rule No. 7

My investment rule no. 7 states that "You can never find it easy to catch a butterfly unless you have a big net." In my first rule, I say that market direction is unpredictable. It is like a butterfly that is flying up and down. So in order to gain money from investment we must have a strategy and enough capital to manage the random nature of the market.

If you only have a small capital, it is not easy to gain money in the stock market unless you are very lucky. All you can do is to put in one or two positions and have to wait for the market direction to go up in order to earn money. If the market direction happens to go down, you either cut loss or wait patiently for the price to go up again.

However if you have a big capital, you can split it into a few parts and use dollar-averaging strategy. All you will need to do is to slowly invest small position at a time. If the price of your stock happens to go down, you will add in more positions. For good fundamental stock, there will be a time where its price will hit the bottom and started to rebound from there. At that point of time you can stop adding more position and wait for the price to go up until you are satisfied with your gains.

Putting multiple positions at different prices is like having a big net and you will find that it is definitely easier to "catch" money with that.

My Quotes/Rules of Investment

Singtel Technical Analysis (19 Jan 10)

Just take my analysis as a pinch of salt. No changes in my last analysis two week ago. Singtel is either going up to $4 or going down to $2.40. I am planning for both direction. If it goes up to $4, I will sell all my Singtel position. However if it goes down to $2.40, I will be adding new position. So it doesn't matter for me whether the price goes up or down as long as the dividend is consistent. Other indicators like MACD, RSI and Stochastic seem to be going uptrend. Please note that I am using TA for long term investing and not to predict the direction of the market. I am bias on the upside since it has shown sign of breaking out the small down trend channel.

Bought 5 lots of SingPost on 18 Jan 10

I have bought 5 lots of SingPost @ $1.01 on 18 Jan 10. So in total I have 25 lots of SingPost.

SPH Technical Analysis (17 Jan 10)

See it for yourself and make your own judgement. SPH is still at the resistance point and showing a short term double top scenario at $3.80. Looking at the MACD, RSI and Stochastic, it is not a time to buy or sell in my opinion. Any uncertainty in the market may just trigger a sell down. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. I have increased my buy price from $3.20 to $3.37. If the price never reaches $3.37, then I will not buy at all. Knowing to position yourself in the market is very important.

My stock gains/losses from Oct 09 to 15 Jan 10

No changes for my position this week. Unrealised capital gain has decreased from $3600 to $3200 as compared to last week.

Cambridge Technical Analysis (14 Jan 10)

See it for yourself and make your own judgement. Cambridge has continued to move up from $0.45 to $0.47 since my last analysis on 30 Dec 09. It may be reaching $0.60 as the first target. If that happen I will be selling all my holdings. Looking at the MACD, RSI and Stochastic, it may be not be the best time to buy in my opinion. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. Currently I am holding 25 lots of Cambridge at $0.415.

SingPost Technical Analysis (11 Jan 10)

See it for yourself and make your own judgement. Singpost chart may be moving towards the double resistance area. In my post "Investor, Traders and Speculators Charts", it really looks like a trader chart.Looking at the MACD, RSI and Stochastic, it may not be a good time to buy now. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. My target sell price is $1.15.

SuntecReit Technical Analysis (10 Jan 10)

See it for yourself and make your own judgement. SuntecReit chart is still facing triple resistance. In my post "Investor, Traders and Speculators Charts", it really looks like a trader chart. If it break the triple resistance, I believe it is going to become a speculation chart.

Looking at the MACD, RSI and Stochastic, it may be the worse time to buy and best time to sell in my opinion. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. My target buy price has increased from $1 to $1.10. If the price never reaches $1.10, then I will not buy at all.

My stock gains/losses from Oct 09 to 8 Jan 10

No changes for my position this week. Unrealised capital gain has decreased from $3625 to $3600 as compared to last week.

DBS Technical Analysis (7 Jan 10)

See it for yourself and make your own judgement. DBS is still at the resistance point showing a inverted hammer. Looking at the MACD, RSI and Stochastic, it may be the worse time to buy and best time to sell in my opinion. Any uncertainty in the market may just trigger a sell down. Please note that I am using TA to position myself for long term investing and not to predict the direction of the market. I have increased my buy price from $12.50 to $13.00. If the price never reaches $13.00, then I will not buy at all. Knowing to position yourself in the market is very important.

Rule no. 5: For a wonderful company, be delighted when its stock price falls, be regretted when its stock price rises.

A lot of investors do not like to see the prices of their stocks fall. However I do have a different view for this. I always buy stocks that have good fundamentals and at my fair price. If the price drops before my fair price, I will average down by buying more instead of cutting loss. My theory is very simple, buy when it is cheap, and buy some more when it gets cheaper.

Stock with a good fundamental will have a good chance of going up again. Furthermore I can collect dividends while waiting for the stock to go up again. That is why I always choose stocks that offer good dividends.

I have a friend who had bought Singtel at $3.40. The price started to drop until $2.85. I advise him to hold rather than cutting loss, and if he has extra money, he may want to consider averaging down. The price of Singtel at the point of writing this post has gone up from $2.85 to $3.10. He had collected a total dividend of $0.131. Though he is still making a loss now, but in my opinion, he will have huge gain in the future eventually.

I feel regretted when I see the stock price rises. It is because I am seeing myself buying stock at a higher price.

My Quotes/Rules of Investment

Singtel Technical Analysis (4 Jan 10)

Just take my analysis as a pinch of salt. Based on my analysis, Singtel is either going up to $4 or going down to $2.40. I am planning for both direction. If it goes up to $4, I will sell all my Singtel position. However if it goes down to $2.40, I will be adding new position. So it doesn't matter for me whether the price goes up or down as long as the dividend is consistent. Other indicators like MACD, RSI and Stochastic seem to be going uptrend. Please note that I am using TA for long term investing and not to predict the direction of the market.

SPH Technical Analysis (3 Jan 10)

I have set myself $3.20 as a target price to buy SPH. Based on the last whole year dividend of 25 cents and a target price of $3.20, the yield is about 7.8%. Looking at the MACD, RSI and Stochastic, it may not be a good time to buy now in my opinion. Please note that I use TA to set my target price for long term investment and not to predict the direction of the market. If the target price is not met, then I will not buy at all. Being patient is one of the key factors for successful investment.

My Stock Strategy for Jan to Jun 2010

My current holding is as below:
5 lots of Singtel (CPF)
5 lots of SingTel (Cash)
20 lots of SingPost (Cash)
25 lots of Cambridge (Cash)

My sell plan is as below:
If Singtel reaches $4.00, I will sell 5 lots of SingTel(Cash)
If Singtel reaches $4.20, I will sell 5 lots of SingTel(CPF)
If SingPost reaches $1.15, I will sell 15 lots.
If SingPost reaches $1.25, I will sell 5 lots.
If Cambridge reaches $0.60, I will sell 10 lots.
If Cambridge reaches $0.70, I will sell 15 lots.

My buy plan is as below:
If DBS reaches $12.50, I will buy 1 lot.
If SPH reaches $3.20, I will buy 5 lots.
If SuntecReit reaches $1.10, I will buy 5 lots.

If none of the prices as above are reached, I will keep all stocks for dividends.

Please take note that I am applying my rule No. 1, which is I do not try to predict the market direction. So I have planned for both market directions. I am also applying my rule No.3 which is "It's far better for other to buy an overvalued stock from you, rather than you buy an overvalued stock from other".