How did market perform on Leap Day?

Overnight Dow Jones closed down 57.32 at 16639.97. Apart from Singapore and Australia market finished in green, New Zealand market closed unchanged and the rest ended in red. Shanghai Composite Index closed down 2.87 percent is the worst performing market among the region after the announcement of Reserve Requirement Ratio cut by PBOC. 

In Hong Kong, Hang Seng Index futures for March contract opened at 19345; market traded to lowest 18960 before it settled at 19057 (-293) at closing while cash market finished at 19111.93 (-252.22). The trading range for March futures contract was between 18960-19345 (385).

February is a short trading month. The entire trading range for February futures was between 18217-19715 (1498). We believe market will retest daily MA10-19204. Higher resistance 19560, 19800. On the downside, immediate support is 18800, next at 18200.

In Malaysia, FBM KLCI Index lost 8.69 points ended at 1654.75. The February futures contract settled at 1654.50 (-10.50) while March futures contract finished at 1647.50 (-14.50). Next month futures contract was traded between 1645.00-1661.00 (16.00). Nearest support for KLCI is 1630, next 1600. Resistance- 1675, 1700.

Johnny Walker & Sons XR 21

During our three weeks holiday, we had quite a lot of good and quality wines. Of course not to forget to add an extra item to our collections- Johnny Walker & Sons XR 21. Cheers!

How many accounts do you have?

We couldn't remember the title and the author of the book we read a decade ago that inspired us to start our investment portfolio. All we do remember is the various accounts the author asked us to set up.

1. Everyday account 
This is the account that involves everyday transactions where the income is deposited into and the money is out to pay bills and expenses.

2. Savings account
No matter you are a fresh graduate just landed a job or an adult that is in workforce for quite some time, it is important to have the habits of saving a small proportion of your income. The best way is to have a separate saving account from everyday account so you can track how much money you have accumulated. 

3. Rainy day account

Also known as emergency account. No one foresees what will happen to us. We might get retrenched one day or we might be sick or involved in accidents. Rainy day account is there for us to survive during disaster days. 

4. Investment account
If we afford to have savings and rainy day accounts, why not increase our capital to set up an investment account. The purpose of investment account is to generate more income. It could be used to buy stocks or properties; start a business if you have a good business idea or business partner. 

5. Education account
Even you are loaded with cash but without proper knowledge and financial management, the rate of spending could be faster than the rate of making money. Therefore, it is advised to have an education account; spend money on buying reading materials or attending seminars, the result could change our life.

6. Charity account
We don't need to be Bill Gates or Warren Buffett to have a charity account. Even as an ordinary person, we can afford to do charity. Donation in terms of money or materials to the needy; spend time and effort in charity works. This is to remind ourselves to be grateful of our life. 

It's amazing how this article actually changed our life. Not only we have the above accounts, we have more than that! All we need to do is put in some effort and take it easy, step by step.

What's next in the market?

The slowing economy in China, negative interest rate in Japan and some European Countries, multiyear low oil price, strengthened US dollar and emerging countries currency crisis, plummeting stock price and the fear of property bubbles etc...

How are these issues driven the economy and market? What are the assets shall we as an investors look into? Is it better to invest in stable dividend payout REITs (Real Estate Investment Trusts) or possible greater return sharemarket at this juncture? Shall we remain our portfolio as it is or make changes to stay defensive or aggressive?

Each individual has different personality, risk profile and risk appetite. It is a good idea to sit down and think about our financial circumstances, create a goal, work out a financial plan and act according to the plan. We'll be surprised to see how the action we take today affect our future life...

We love the saying of "You are here today because of the decision you made in the past. Your future will depends on the decision and action you made today." 

Range trading

Looking at the chart and with Dow Jones one day closed up the next day closed down, we think Dow Jones will trade between 15800-16500 in short term. Unless market break above 16600, we'll see a new uptrend formed. 

February is the shortest trading month for Asia market. The trading range for Hang Seng Index futures for this month is traded between 18217-19715 (1498). There is another two days till spot month futures contract expiry, we think market will hover around Daily MA10 at 19027. 

Traditionally, market will rally from March till April or end of May due to corporate earnings announcement. Will this trend continue this year? According to Financial Secretary John Tsang, Hong Kong is facing slower growth and is in a challenging economic situation. 

We see HSI will range bound between 18530-19500 in near term. If there is any good news in the market, short covering and fresh buyers may push market above 19600, the next resistance is seen at 20000, then 21000. Conversely, if short sellers and panic cut loss send market towards 18200, further support is seen at 16000.

As for KLCI, market is expected to range between 1625-1675 until new catalyst form a new uptrend or downtrend. Key support and key resistance are 1600 and 1700, respectively.

The end of holiday

We were away for three weeks during CNY break. Not much time and effort spent in the market; indeed it was a very good break to refresh our mind and soul.

The good thing about our job is, we can work wherever we go so long there is internet connection. We can invest in whatever we think it is worth to buy so long it is worth the value.

We relaxed for the past few weeks, drank a lot of good and value wines; review the journey J&M had come along and we are ready to share a few stories of successful financial management in the future.

We will work hard in the year of monkey, spend frugally and invest wisely. This is the motto of J&M towards a successful financial journey.

The bear is in control...

Happy Chinese New Year to those who are celebrating the festive season! We are away from the trading desk, therefore there will be no update from us about the market.

We didn't really pay attention to the market as we are taking a CNY break. All we knew is Hang Seng Index plunged 1000 points when market resumed trading yesterday. Nikkei 225 broke 52 weeks low again, lost almost 2000 points within this trading week. Looks like the bear is in control of the market. 

We'll come back to the market when we are ready. Happy holiday to those who are still in holiday mood; happy trading and happy investing to those who are in the market!