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Hot Stocks – Where to trade Genting, Genting Malaysia and OWG?

Trading room – Wed 28 Nov 2018

 

It was reported by Star Online that Walt Disney Co and Twenty-First Century Fox Inc were sued for more than US$1 billion yesterday by casino operator Genting Malaysia Bhd, which accused them of abandoning a contract related to its planned construction of the first Fox-branded theme park.

According to the media report, Genting Malaysia said “seller’s remorse” induced Fox, with Disney’s help, to breach its 2013 contract with Fox Entertainment Group to license intellectual property for Fox World, a proposed addition to its Resorts World Genting complex, an hour’s drive from Kuala Lumpur.

The lawsuit was filed in the U.S. District Court in Los Angeles as Disney prepares to complete its $71.3 billion purchase of many Fox assets, expected in the first quarter of 2019.

It was later reported today that Disney and Fox rejected the claims as “without merit.”

Genting Malaysia said it had already made a “$750 million-plus investment” in Fox World. It is also seeking punitive damages.

 

The news sent both Genting Malaysia and its parent Genting, share prices sharply down yesterday. Genting Malaysia fell 16.7% to RM3.00, close to its low for the day of RM2.93, while Genting fell 7.5% to close at RM6.38.

Theme park operator cum leisure entertainment player OWG (Only World Group Holdings Berhad) also saw its share price falling 21.8% to RM0.485.

In reaction to the news, a research house has cut its fair value for Genting Malaysia RM3.65 from RM4.40 but has upgraded the stock to a buy.

 

As it is, the Genting group companies were hit by sell-downs on high volume previously in the aftermath of the Budget 2019 announced on Nov 2, 2018, which was a negative surprise for the gaming sector, as both casinos and number forecast operators (NFOs) were not spared.

According to an analyst report then, casino license fee will be raised to RM150m from RM120m p.a. while casino duty rate will be raised to 35% from 25% of gross gaming revenue and the number of special draws will be halved (for NFOs).

We had written in the mPower Algorithm report then that “Genting Malaysia volume of 379m then was at an all-time high for one year and if not for the fact that it was a first-day sell-off could have indicated a climatic bottom for the stock. With RM3.72 being the critical level for the stock, it appears that the sell-down may not be over.  The stock will try to reclaim the level above in the next few hours/days and if failed, a re-test of the strong support at RM3.18 is the target.”

 

With this target reached (Genting Malaysia share price now at around RM3.00), is the selldown finally over? Where is the actual level to trade buy Genting Malaysia on weakness for elite traders?

 

For Genting, we had also written in the mPower Algorithm report then that “Genting traded lower on a high volume of 36m shares which was its high 3 months volume but not too overly excessive. The RM6.80 critical level should be used to assess the weakness of the stock for short opportunities. If the stock rise above RM6.96 on daily volume of more than RM10m, stay aside for short opportunities at a higher level. A long-term target for the stock (if stay below RM7.00) could be RM6.41/or lower.

Genting actually broke the RM6.41 level yesterday and is now attempting a rebound? Is this the opportunity to trade in or its a bull trap for traders?

 

Meanwhile, for OWG, the selldown on the stock is already predicted from its downtrend which is in force sometime back. The selldown yesterday occurred at two key important considerations and you need to know these criteria before you decide to include the stock into your trading plan.

The trading action plan is very simple for OWG for elite traders and this is outlined in our mPower report. Act as soon as the key critical level mentioned in the report is breached in the direction of the breach.

 

Join and network with us at our mPower Algorithm and mPower Trading programs and see how your outlook on the market and stock portfolio could be helped and shaped by big data analytics and trading algorithms.

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Trading – Man vs. Machines: Part 3 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

Trading room – Mon 26 Nov 2018

 

In our prior series on how algorithm trading can supercharge your trading profit, we looked at the introduction to the world of algorithm trading and how it is a force that has changed and continued to disrupt the global investment and trading world.

You can read Part 1 here on Introduction: When humans and machines collide.
You can read Part 2 here on Man vs. Machine: Kasparov vs. Deep Blue

In Part 3 of these series, we continue off from Part 2 where the astounding chess event in 1996/1997 saw World Chess Champion Garry Kasparov then took on IBM and its super-computer Deep Blue in the ultimate battle of man versus machine and his loss for humanity.

We mentioned that in reality, there was much to learn from this historic game of man vs. machine and its relation to many technology-based applications that govern our world today including automated trading systems in trading that is mushrooming today.

Continue reading Trading – Man vs. Machines: Part 3 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

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Portfolio – How to trade the FBM KLCI 30 stocks?

Trading room – Thu 22 Nov 2018

 

Bursa Malaysia was the worst performer among the key Asian markets yesterday as the selling of banks and companies like Axiata and Genting Bhd dragged the FBM KLCI deeper into the red.

The Dow Jones Industrial Average closed Wednesday’s session just below the flatline, erasing a 200-point jump, as shares of Apple failed to hold on to strong gains from earlier in the day.

Meanwhile, Asian stocks are mixed but at least a few markets here are likely to resume their dominant trend soon.

Continue reading Portfolio – How to trade the FBM KLCI 30 stocks?

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Hot Sector – How to trade the Technology sector?

Trading room – Wed 21 Nov 2018

 

The US Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in the retail stock, Target pressured retailers, while some of its most popular tech shares dropped again.

The 30-stock Dow dropped 551.80 points to 24,465.64 and the S&P 500 plunged 1.8 percent to close at 2,641.89. Meanwhile, the Nasdaq Composite also dropped 1.7 percent to 6,908.82.

The continued fall on Tuesday’s came a day after members of the popular “FAANG” trade —Facebook, Amazon, Apple, Netflix, and Google-parent Alphabet — all closed in a bear market, down more than 20 percent from their 52-week highs (a widely used barometer by Wall Street).

Continue reading Hot Sector – How to trade the Technology sector?

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Trading – What is the best trading signal to use in the market?

Trading room – Monday 19 Nov 2018

 

Most traders are always looking for the trading system that can give them the best trade signals to act and make money in the market. Let’s define a trade signal first.

A trading signal is a trigger for action, either to buy or sell a security or other asset in the market and generated by an analysis. This analysis can be generated by using fundamental analysis, technical indicators (which can be quantitative or qualitative) or it can be generated using simple or complex mathematical algorithms.

The signals can be based on direct market conditions (for example the price or volume movement of a stock) or non-direct market factors such as the company or economic indicators.

Continue reading Trading – What is the best trading signal to use in the market?

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Trading – Man vs. Machines: Part 2 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

Trading room – Friday 16 Nov 2018

 

Part 2 – Man vs. Machine: Kasparov vs. Deep Blue

In the first part of this series on how algorithm trading can supercharge your trading profit, we look at an introduction to the world of algorithm trading and how it is a force that has changed and continued to disrupt the global investment and trading world.

You can read Part 1 here on Introduction: When humans and machines collide.

Obviously, before we look further at the power of big data analytics and algorithm trading, we would like to look at how it all started with an astounding event in 1996/1997 that captivated the entire world attention.

Continue reading Trading – Man vs. Machines: Part 2 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

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Market – Commodities prices outlook adding to market worries or hope?

Trading room – Thur 15 Nov 2018

The world economy has lost some steam in recent months and is likely to slow much further in the next couple of years according to some recent analyst reports.

According to an analysis in Bloomberg, markets got high on synchronized growth but the buzz is fading and an urgent question taking place is whether the equity markets worldwide can get another fix fast.

Apparently, the omens aren’t great.

Continue reading Market – Commodities prices outlook adding to market worries or hope?

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Trading – Man vs. Machines: Part 1 of a Continuing Series “How Algorithm Trading can supercharge your Trading Profit”

Trading Room – Tue 13 Nov 2018

 

Part 1 – Introduction: When humans and machines collide

 

Algorithm trading has taken the world by storm and it is time traders and traditional fund managers start to take notice.  Disruptive technologies are reshaping traditional business models and in the field of investment, algorithm trading is a potent force that is changing the dynamics of the industry and how it operates.

Institutional Investor’s (an international finance publisher) 17th-annual Hedge Fund 100 ranking of the 100 largest hedge fund firms in the world as of year-end 2017 finds that the four biggest hedge fund firms — and five of the six biggest — on its ranking rely largely or fully on quantitative strategies using computers to make their investment decisions and have continued to attract assets.

Continue reading Trading – Man vs. Machines: Part 1 of a Continuing Series “How Algorithm Trading can supercharge your Trading Profit”

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Trading – The greatest skill of a master trader: The art of doing nothing?

Trading Room – Mon 12 Nov 2018

Can you be serious? How could doing nothing be the greatest skill of a master trader? How can a trader make any return let alone supernormal profit if he does nothing?

The distinction to understand between doing nothing at certain times and doing nothing all the time is the hallmark of an elite trader. Most common trader always hunger for some kind of actions, believing that the market somehow owes them a profit which had to be made daily if not weekly.

As such, these traders find that they have to enter a trade most of the time, even when the market is moving against their trading plan. They set a planned profit target every day or week/month which had to be met irrespective of the market condition or the stock position. Continue reading Trading – The greatest skill of a master trader: The art of doing nothing?

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Trading – The mistake of relying on past successes

Trading Room – Fri 9 Nov 2018

Most common traders and investors are always searching for the holy grail in trading. Past success is no guarantee of future performance yet they mistakenly believe that there is some single solution to defining market behavior and are looking for the magical bullet and formula to define all market actions.

However, not only is there no single solution to the markets, but those solutions that do exist are continually changing. The range of the methods used by the top traders in the world, some of which are even polar opposites, is a testament to the diversity of possible approaches.

There is a multitude of ways to be successful in the markets, albeit they are all hard to find and achieve. However, this does not mean that all methods are born equal or are applicable to all market conditions.

Continue reading Trading – The mistake of relying on past successes