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Back with venegence

While I’m away, I’m busily preparing myself for more FA and come to understand it is not something you can understand in one or two months. Probably, I would focus more on the property, reits and commodities sector as banking balance sheet is much too complicated to understand. As both sectors are highly leveraged, it often means when the market turns, they will also be the one that suffers a lot more and means I can buy cheaper when recession comes.

The Edge has come in handy to update myself of all the happenings around the world. Most probably I won’t be able to cover all the news as my work load is getting pretty high recently. The Edge is something I would recommend strongly as the topic covered is pretty wide. However, it would really take quite some time to finish the paper. I took one whole day today just to finish the paper.

Recently I bought into Capitaland (as I am not able to buy into SIA Eng as it run up 9c a day right in front of me) and Midas while cutting lost on my other counters. It is only when I cut loss then the counter starts to rebound. I have to be more disciplined in cutting those that are not working. Well all is not loss as they are still in a downtrend channel.

I don’t think I can ever be a good value investor as it is hard for me to do nothing. It would be better for me to become a mid term investor with time span of 3-6 months to provide good risk reward or a GARP (growth at reasonable price) strategy will be a better fit. Looking through the list of Edge, I try to look for companies with ROE more than 20% and PE of less than 10. Of cos there are exception like F&N. Part of my watchlist base on this criteria will include:
F&N, Armstrong, Boustead, Bukit Sembawang, Ezion, Jaya Holding, KS Energy, Pac Andes, PLife Reit, PEC, SC Global, Sino Grandness, Swiber, Tat Hong, Utd Engineer, Wheelock and Wing Tai.

I have to be more cautious with Midas as JP Morgan has pared down their holdings of Midas to 5mil from 8mil shares . Well a picture speaks a thousand words do look at the weekly and daily chart as both do provide opportunities to long given the bullishness of STI. With HSI gapping up 340 points and close with a strong finish today, STI is set to go higher despite the bearish divergence that has persist for so may months. All awaiting for US to give us a clue for next week. When the trendline break, make sure to run as fast as possible.

As far as of now, I don’t think I will change my TA play with 321 diversification strategy, which allows me to work somewhat like a Unit Trust. It is not how many indicators you use but how well you know your system especially the blind-spot. Every system has their own headache and I started to understand mine.

MIDAS

Announcement on 11/10/2010.

Short Term Downtrend
Long Term Uptrend

Lying at resistance turn support, resisted by trendline and divergence is shown on various indicators. If break down line and go up, a higher low is form and uptrend resume.

This is a very interesting company that undertake lots of projects but after so long, somehow all these just does not translate to earnings. With or without it, if the major support holds (meaning down line broken), will be safe to long. Hopefully will get to see 2 doji holding at support (cos risk reward is better than bullish engulfing candlestick). Already got 1 white candle, 1 more to come?

http://www.remisiers.org/cms_images/Midas11102010ke.pdf

2010Nov-Midas-daily

Back to long term trendline support and also resistance turn support

2010Nov-Midas-wkly

Weekly chart showing the trendline support

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  1. November 6, 2010 at 6:00 am

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