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Hang Seng tech ETF: BUY or SELL?

Friday, November 11, 2022

When I bought some Lion-OCBC Hang Seng Tech ETF, many readers were surprised.

AK the IT dinosaur buys Chinese tech stocks?

Alamak!

Growing senile liao lah!

Well, for those who don't know, read:

Trading Chinese tech stocks for pocket money.

Yes, AK isn't really investing in Chinese tech stocks.

AK is trading Chinese tech stocks.

OK, to be honest, there is also an investing element because I only got interested in Chinese tech stocks after their share prices fell from the sky.

Basically, in recent months, Chinese tech stocks have been trading at valuations which value investors might find interesting.

They were trading at what I thought were crazy high valuations before and proponents were all saying high PE ratios were reasonable for these tech companies.

As it turned out, those crazy high PE ratios were only possible because interest rate was zero or even negative.

Then, there were some meme stocks which rode on speculative fervor and tech stocks which didn't even have a PE ratio because they didn't have any earnings!




Still, since the Lion-OCBC Hang Seng Tech ETF does not pay a dividend, as an investor for income, I have to trade it to generate some income.

One of the things I like to remind myself when it comes to trading stocks is to go for stocks which I do not mind holding on to.

Usually, the reason is because I feel these stocks are mispriced and there is a good chance of prices going higher later.

Of course, how much later I don't know.

If you think this sounds like speculation, it is!

What?

You think speculation is bad?

AK hides his face in shame...




As usual, I would keep my speculative positions small or very small.

So, in the event that we have to hold on to our positions, we won't lose sleep over the matter.

In trading, whenever we can book a gain and take some money off the table, we should do so and I have sold what I purchased at 49 cents a unit in late October at 60 cents a unit today.

The declining 50 days moving average is just a bit above 60 cents and should be immediate resistance.

If this should be cleared, then, the declining 100 days moving average is next and it is now at 69 cents but it could be at 67 cents by end of the month.

Yes, the trend is still down and trading to make some pocket money reduces the cost of holding.

It is just like investing in dividend paying stocks but it isn't passive income in this case.




I treat this as an adventure or an experiment.

With a tiny position, it is not something that is going to make me rich.

If it goes bust, it won't sink me either.

If you like what I am doing and would like to do the same, please be mindful of all the things I have said.

Be pragmatic.

Have to stay nimble.

The bear is still very much in control.

Recently published:
IREIT Global: Update.

Related post:
Cut loss on Alibaba or buy more?




5 comments:

AK71 said...

Reduced exposure again today as the ETF's unit price rose higher to test the descending 200 days moving average which is approximately at 71 cents.

Made some pocket money.

C said...

Thank you AK Shifu for your self talk. I hope to buy back Hang Seng Tech ETF around $0.651 if it happens. Now china seems to have a mixed of good and bad news on COVID reopening... But now it seems to have lots of buyers at around 0.68

AK71 said...

Hi C,

The 20 days moving average is rising and is currently at around 68c.

So, that is the short term support.

The longer term 100 days and 200 days moving averages are still declining.

The ETF is currently testing resistance provided by the declining 200 days moving average at 71c.

I don't have to buy back but if price retraces to the 50 days moving average which has reversed its downtrend and is currently at 62c, I would be tempted to buy some. ;p

C said...

Illuminating thoughts from you, thank you sir

AK71 said...

Hi C,

I anyhow talking.

You anyhow eavesdropping.

For fun and laughter only.

;p


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