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Market – What, when and where to buy stocks for rebound on Bursa Malaysia?

Trading room – Tue 18 Dec 2018

The dreaded word has reached the biggest market in the world. US stocks fell further on Monday, pushing the S&P 500to a new low for the year amid growing concerns that the Federal Reserve’s plan to raise interest rates could be too much for the economy and stock market to handle.

The S&P 500 fell as much as 2.5 percent to 2,530.54, surpassing its February intraday low of 2,532.69. The Dow JonesIndustrial Average lost 507.53 points to close at 23,592.98, bringing its two-day losses to more than 1,000 points.

It was reported that the Dow and S&P500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 7 percent so far for the month. The S&P 500 is now in the red for 2018 by 4 percent.

The tech-heavy Nasdaq Composite dropped 2.2percent to finish the day at 6,753.73.

However, the main news is that the US Russell 2000 index — which tracks the performance of smaller companies — entered a bear market, down 20 percent from its 52-week high.

The worry is that these names are the most sensitive to fluctuations in the US economy and market sentiment because of their small size, and could signal larger caps would soon join them.

According to one US analyst, the sell-off comes from the risk-off sentiment as “small caps are riskier than large caps, and there are some concerns about the end of a cycle in the U.S. and that we are entering a recession.”

The sell-off in small-cap stocks in the US is a sharp reversal from their outperformance earlier this year.

Small caps there had benefited from bets that small, domestic-oriented companies would be immune to the trade tensions between the U.S. and China and benefit most from the U.S. tax cut. However, rising rates and increasing costs on things such as wages ultimately dented the appetite for smaller companies, along with an overall risk adverse sentiment.

We know that any time the US market sneezes and in this scenario cough heavily, the flu is likely to spread across markets all over the world.

The local bourse, Bursa Malaysia has also seen relentless selling of small cap and high-beta stocks in the last few weeks as could be seen from the falls in the Small Cap Index, ACE index and technology stocks.

But these falls are also presenting tremendous opportunities for rebound plays for long buyers. Where and when exactly will there be a rebound in these major indices and how long will they last?

Elite traders know that tracking and knowing these levels make all the difference between them and the common traders as they can enter and exit much earlier for above-average gains when the rebound comes.

There are many ways one could accumulate stocks near to their lows.

The presence of divergence, stretched volatility and cycle, strong support or breaking of major critical resistance levels are just some of the methods that could be calculated mathematically in advance to present low-risk high probability entries.

These mean that one should be prepared to buy the right stocks at the right time and at the right level, even while others are still selling.

Indices Outlook for Bura Malaysia

Note: Certain info presented in the tables above has been redacted to comply with the agreement with elite members of the mPower Algorithm program and mPower Trading program and certain institutional clients. The above analysis reflects our personal view only and is subject to terms of use. Please refer to the full report inside for the complete info.

The selling on the market has been indiscriminate and likely based on sentiment with the baby being thrown out along with the bath water. A study of both fundamentally strong stocks and their technical/tactically levels using big data and algorithm-calculated levels will easily show the best stocks to accumulate and their levels and timeto do so.

Here is a list of such tradeable stocks and trade action should be undertaken as soon as their critical levels are breached to the upside. Double-digit gains are likely in a rebound play and elite traders should watch these stocks closely at the critical levels given and adopt appropriate position sizing.

Priority should be given to high betasector and stocks (highlighted in orange).

Note: Certain info presented in the tables above has been redacted to comply with the agreement with elite members of the mPower Algorithm program and mPower Trading program and certain institutional clients. The above analysis reflects our personal view only and is subject to terms of use. Please refer to the full report inside for the complete info.

Join and network with us at our mPower Algorithm and mPowerTrading 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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Market – The state of global markets and KLCI

Trading room – Mon 17 Dec 2018

Stocks fell sharply on Friday in the US after weaker-than-expected data in China and Europe exacerbated concerns of a global economic slowdown.

The Dow Jones Industrial Average fell 496.87 points to24,100.51, its lowest level since early May, led lower by declines in Apple and Johnson & Johnson. For the year, the Dow is now down 2.5 percent.

Meanwhile, the S&P 500 dropped 1.9 percent to 2,599.95 —its lowest closing level since April. The index also closed down 2.75 percent for 2018 year to date.

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Hot Sector – Trading the excellent volatility in Oil and Gas stocks

Trading room – Fri 14 Dec 2018

Have oil prices hit a bottom or will there be further downside? Brent crude price was trading as high as USD86.29 per barrel in early October but has slumped very quickly to as low as close to USD60.00 per barrel recently.  The reversal shocked many analysts who were predicting then that oil price could be on the cusp ofrecovery.

Some even predicted that it could breach US$100 per barrel as early as next year at that time. However, the price slumped over 32% in a shortspan of two months.

Those who have been following the mPower Algorithm reports know that the critical level for the oil prices were broken then at the two stated levels mentioned and we exited the sector immediately two months back.

Continue reading Hot Sector – Trading the excellent volatility in Oil and Gas stocks
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Hot Stocks – E-Govt players fall like dominoes

Trading room – Thu 13 Dec 2018

The shares of some e-govt players have been falling like dominoes after the cancellation of a contract to Prestariang Berhad and fears that there are future cancellations as well to other players such as My Eg Berhad.

Shares in Prestariang Bhd had slided in the wake of the cancellation of itsRM3.5bil national immigration control system (SKIN) concession. The shares recently plunged 15 sen to 30.5 sen, its lowest level in nearly seven years as panic selling ensued after news broke on the project cancellation.

According to media reports, the Home Ministry confirmed the Immigration Department’sRM3.5bil national immigration control system (SKIN) concession has been canceled.

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Trading – How to trade and win in the market (without being overworked and burnt-out)?

Trading room – Tue 11 Dec 2018

Every trader wants to buy a stock that is going to go higher and obviously, for those who sell or short, the same trader wants to enter into a trade that is going to go lower.

Now, we all know that stock price movement is at its base merely a function of the supply and demand for the stock.

For a stock that is going to move higher, it’s just simple more buyers who want to own a particular stock versus the number of sellers who are willing to sell their shares to those buyers. But here is the key consideration.

Elite traders want a stock that is always going to move in a significant way. Of course, they’ll always be small, thinly traded stocks that will pop up for a day or two but there won’t be any liquidity in these stocks for a trader to make a sizable profit sum.

Continue reading Trading – How to trade and win in the market (without being overworked and burnt-out)?