Cache Logistics Trust: Retreating to supports.

Cache Logistics Trust is a favourite of many REIT investors. It has also received many glowing reports from analysts. I also have a small long position in the REIT.

Today, a reader left a comment in my blog asking me if it is a good time to invest in the REIT as it closed at $1 a unit in the last session. Fundamentally, the REIT is a well run entity with 8.4% distribution yield per annum. If one is happy with its numbers, why not? Technically, however, I see possibly further weakness and there could be stronger supports at 98.5c and 97c.

I thought I would share in this blog how I arrived at these numbers.  Quite simply, I looked at the longer term chart, the weekly chart. Daily charts show shorter term price gyrations while weekly charts show possible longer term directions. The MAs on the weekly chart for a trending counter are likely to be stronger supports and resistance, therefore.

Notice how the black candles of the last two weeks formed on the back of increasing volumes? Positive momentum is obviously weakening and further weakness in price would not be surprising.

On the daily chart, the MACD is on the verge of entering negative territory. A return of negative momentum could send unit price lower. The Stochastics is upturning in negative territory. This suggests an oversold situation but if this momentum oscillator should turn up successfully, there could be support and downside could be limited. 98.5c or 97c in the near term? Possibly.

What is interesting to note is how the OBV has been declining which suggests distribution activity has been going on for some time. For sure, it did not happen in a straight line but the trend is clear. This signal suggests that we should exercise caution when initiating long positions. Better to err on the side of caution it would seem.

Related post:
Cache Logistics Trust: 4Q and FY2011 results.

Tea with AK71: Reel fight to real fight!

I enjoy Chinese period drama. I enjoy Chinese pugilistic movies with good kung fu too. Two actors I particularly like watching in such movies are Donnie Yen and Zhao Wen Zhuo whom I recently found out is called Vincent Chiu.

Donnie Yen

I don't usually follow the entertainment news and I usually skip the "Life" section in The Straits Times. Due to this, I have been said to have no life by some friends and family members. Nice pun.

However, the recent fight between Donnie Yen and Vincent Chiu which apparently has been going on for weeks finally caught my attention. If it gets the attention of AK71, it must be BIG!

Vincent Chiu

I don't know either man personally, of course, and whether it is a clash of egos or if there are some serious and valid grievances, I do not know. You guys go read the reports and decide for yourselves. Apparently, the dispute created flaming in cyberspace that would make the Great Fire of London looked like a harmless campfire.

What caught my attention and created a deep impression was a remark by Vincent Chiu:

"All ten properties I bought at a low price in Beijing are now worth six times more.

"Even if I stop working, I won't have any difficulty getting by," Chiu told the media recently, in response to Yen's announcement that he would take Chiu to court.

Passive income in the form of rental income plus capital appreciation of 500%! Impressive. Vincent Chiu is not just an accomplished martial arts pugilist, he is also a savvy investor.

Read the article: here.