Sell in May!

The market was declining since first trading day of May. The effect of Sell in May...

In Hong Kong, Hang Seng Index May futures ended at 20049 (+74) at today's closing; cash market gained 46.94, closed at 20156.81. Range of the week for Hang Seng Index futures last week was recorded between 19887- 20987 (1100). The market broke the support of 20000. Where is market heading from here? 

Market is oversold. It is not surprise to see a rebound in HSI...But after that, is the sell down continue ? Or it is time to slowly collect shares? We see the resistance at 20250, next at 20500 and higher at 20800. On the downside, supports are 19800, next 19400.

In Malaysia, KLCI May futures was traded between 1629.0-1667.0 (38.0) last week. At today's closing, futures closed at 1629.50, lost 11.50 points while cash market ended at 1632.19 (-17.17). Immediate support is found at 1625, next support is 1600. On the upside, market will retest 1648. Higher resistance 1665.

Currently, we are hedging in the futures market. Sell when market rebound and buy on dips. We are monitoring the share market and will slowly collect at the right time. Our portfolio still consists of dividend stocks, REITS, foreign currencies, cash and properties. We will reallocate the percentage of holding according to the market condition.