AK71 is on vacation!

In my last blog post, I mentioned that I had to catch a very early flight this morning and had to sleep early. Well, sleeping early is something very difficult for me and I didn't sleep very well last night.  If you are wondering what am I doing catching an early flight today, I am on vacation! Yes, finally!

I just woke up from a short nap and got connected to the internet a while ago. I have checked the stock market and saw, wow, a sea of red! It seems that the unrest in the Middle East and North Africa is shaking the global stock markets. I see prices of gold and silver climbing higher even as equities retreated.

This could be one of those opportunities to load up on counters with sound fundamentals. It could be a chance to make some value buys. This is the investor in me talking. However, the trader in me says that things could go lower and that we should wait to see supports holding up before increasing our long exposure. This is only sensible, is it not?

Which are the counters I am eyeing? Quite a few and here are three I am thinking of loading:

1. CapitaMalls Asia: Reversal signal failed to be confirmed, similar to most other counters' reversal signals. Keep an eye on the $1.83 support. See my earlier blog posts for more information.

2. AIMS AMP Capital Industrial REIT: 20.5c is holding up nicely as of now. I would probably put in a buy order tomorrow at 20.5c. Would definitely buy more at 20c, if ever tested. See my earlier blog posts for more information.

3. Cache Logistics Trust: I have been waiting for another chance to start a long position in this REIT. Touching 93.5c today, I might just be given a chance to buy a bid or two lower. See my earlier blog posts for more information.

Although I have internet connection in the hotel, I just realised that they use a different type of electrical plug from Singapore. I will have to see if I can get an adapter from a hardware store or supermarket. If I cannot find an adapter, you might not see me blogging for a while as my notebook's battery is running low on power.

Also, as I am on vacation, I might be somewhat lazy. It is only natural, isn't it? ;)

So, don't be surprised to see one liners or nothing at all. Hahaha... A vacation is a most uplifting must do for working adults. Despite a sea of red in the stock market, I am actually feeling quite happy. It could also be that most of my investment portfolio is for income. So, I am not so affected by the market weakness since capital appreciation is a secondary objective for me.

Till the next blog post, good luck to one and all. :)

CapitaMalls Asia: Morning doji star?

You might notice that many charts are spotting reversal signals today which are in need of confirmation. After so many days of down action, many counters seem ready for a rebound. Of course, signals will always need confirmation.

Regular readers would remember that I said I would wait to see if the $1.83 support for this counter would be retested. If the support held up upon retest, I might increase my exposure to the counter. Today, I increased the weight of my long position at $1.86. Why?

1. A lack of selling pressure as exemplified by the low volume.

2. The formation of a doji which is a potential reversal signal.

3. An uptick in the MFI and RSI which suggests some underlying support.

Taking point number 2 further, we could be seeing the first two candles in a three candles reversal pattern which is known as the Morning Doji Star. If price opens higher tomorrow and forms a white candle that ends the day at $1.90 or higher, the set up would be perfect. This set up usually signals a reversal from a downtrend.

Like I said before, TA is useful in giving us glimpses of what might be and not what would be. So, always be prepared for two scenarios.

If price goes up, what do we do? If we connect the highs of 9 Feb and 17 Feb, we get a trendline resistance. On the weekly chart, the resistance shows up as $1.92. On the daily chart, the resistance could be at $1.93 to $1.94. So, in a downtrend, sell at resistance. What about retaining some shares to see if there is a chance of price retesting the 100dMA as resistance as it did on 9 Feb? Why not? This would approximate $2.00 this week and coincides with the upper Bollinger band on the daily chart.

What if price did not go up and went down instead? In such an instance, I would wait to see if $1.83 would be retested as support and if it held up upon retest, I would buy more.

That's all, folks. I have a very early flight to catch tomorrow and I am going to try to sleep earlier. So, this is the only blog post for tonight. Good luck and good fortune.

Related post:
CapitaMalls Asia: Support at $1.88 gave way.