CapitaMalls Asia: Directions, please.

On 15 August, I mentioned that pre-empting a trend reversal did not work out and I ceased buying more shares of CapitaMalls Asia. Then, I used the rebound later in the month to reduce exposure.

On the daily chart, it is interesting to note that the Bollinger Bands are narrowing once more. This reduction in volatility when interpreted together with a rising 20dMA that is on the verge of forming a golden cross with the 50dMA suggests that price is more likely to rise than fall.

In the event that price should go higher, we could see it testing the declining 100dMA and even the downtrend resistance again. These are currently at $1.44 and $1.57 respectively. Gap resistance at $1.40 and $1.55 would have to be overcome first in these two instances.

What if price were to weaken instead? I would wait to see if the low of $1.13 holds up as support, failing which I would want to see if a higher low forms on the MACD. Looking out for a positive divergence? You guessed it.

$120k annual passive income from S-REITs next?

With the end of 2011 more or less in sight, I decided to take a look at how my aim to generate at least $50K in annual passive income from the stock market has fared this year. Of course, compared to the end of 2010, many things have changed. Don't they say that the only constant in life is change?

Saizen REIT was my largest investment up till early this year. The massive earthquake that struck Japan on 11 March 2011 left huge areas of the country devastated, areas which are economically important. I reduced my investment in Saizen REIT even though its buildings were largely unaffected with only a handful requiring repair work.

It was a decision premised upon possibly more difficult times that would hit the country and from a technical standpoint, further upside in its unit price could be capped. So, reading the charts back then, I waited for a rebound in the REIT's unit price and partially divested my investment in the REIT at gap resistance.

Next, I tweaked my portfolio with funds freed from the partial divestment of Saizen REIT. I further increased my investment in First REIT and initiated long positions in Sabana REIT and Cache Logistics Trust after doing the necessary due diligence.

Not long after, I reduced my investment in AIMS AMP Capital Industrial REIT, shifting the funds from that partial divestment to Sabana REIT, in the process balancing the two REITs' weight in my portfolio.

In 2011, thus far, I have received income from the following S-REITs:

1. AIMS AMP Capital Industrial REIT
2. Saizen REIT
3. First REIT
4. LMIR
5. Cache Logistics Trust
6. Sabana REIT
7. Suntec REIT
8. Cambridge Industrial Trust
9. FCOT

Total: $75,785.49.

Therefore, I have exceeded my personal target of $50k in annual passive income generated from investments in the stock market this year and this is from S-REITs alone.

At the end of this year, I will calculate the amount of passive income which S-REITs alone would have generated for me in 2011. It is quite likely that it could surprise on the high side.

Taking the cue from the blogmaster of Bully the Bear, I might have to set a higher target for myself in 2012. What about $120k next? Why not?

12 of this every year? Wah!

I will end this blog post by again saying: "If AK71 can do it, so can you."

Joi Kin! (ala "Yan can cook, so can you!")

Related posts:

1. Seven steps to creating passive income from the stock market.

2. $50k in annual passive income: Year end status (2010).

3. Sanity prevails with more good news.