What the charts tell us

A quick scan at the daily charts and we've found for DJIA, its nearest support is at 18200. If this level able to sustain, market will slowly test 2016 high, which is 18622. On the other hand, break below 18200 will test next support at 18000. A big correction might comes if Dow broke below 18000, far support-17600.

As for Nikkei 225, the market was range trading between 15500-17000 since Feb till today. Where is the market heading? Will the 28 Trillion stimulus able to move the market higher? Far support we are looking is at 14000. Upside resistance 18000, next 22000. These are the trading range we think Nikkei 225 gonna move for the rest of the year.

We haven't seen any recovery yet for Shanghai Composite Index since the big drop from May 2015. The market had been moving between 2700-3100 from beginning of the year to date. Nearest support for SHCOMP is seen at 2900, next 2800. Resistance 3100. If Shanghai market able to break above 3100, next target 3300-3400. Will China becomes the favourite market for investors and fund managers?

Hang Seng Index rebounded aggressively since the Brexit day close to 19500 from end of June, till today's closing at 21739. Immediate support is found at 21500. If further correction happened, next support we are seeing is at 20500. Near resistance 22500.

KLCI Index and the currency Ringgit considered as the worse performing market in South East Asia region due to 1MDB incident. Market was trading between 1600-1730 for the past seven months. We think KLCI Index will test support at 1640 in near term. Further down, support is 1620. On the upside, resistance is 1670. 

DJIA broke record high

Overnight Dow Jones gained 10.14 points closed at 18516.55, off record high from 18557.

Hang Seng Index July futures closed at 21731 on Friday evening (+145) while cash market ended at 21659.25 (+98.19). Range of the week for HSI futures was traded between 20835-21773 (938). HSI was ranging between 19500-21500 since March; looking at the chart, the nearest resistance is seen at 21857. If market able to break above this level, next target is 22000. Higher resistances-22568, 22813. On the downside, immediate support is at 21663, further down 21157.

As for KLCI Index futures, July contract gained 11.50 points ended at 1668.0; cash market gained 13.62 points finished at 1668.40 on Friday closing. Range of the week for spot futures was traded between 1649.0-1671.0 (22.0). Immediate resistance for KLCI Index is found at 1680, next 1695. Support 1658.0.

Malaysia cut interest rate to 3%

Bank Negara Malaysia (BNM) decided to cut Overnight Policy Rate (OPR) to 3 percent after the meeting today. This is the first time interest rate cut after 7 years from Global Financial Crisis. Is Malaysia moving into a low or zero interest rate trend soon? Perhaps it is time to hunt for affordable properties or quality stocks in Malaysia market! 

When the news was released, July KLCI futures was trading at 1660.0 (+2.0); range of the day was traded between 1654.0-1662.5 (8.5) while cash market was at 1658.31 (+4.34). As for Ringgit, 1USD is equivalent to RM3.98. 

Brexit Day!

Brexit Day! The voting started at 1400 KL/HK time zone yesterday and we'll get the result at 1400 later this afternoon. Whether Britain will leave the European Union or not, the market is definitely a volatile one! No matter is stock and futures market or the currency market. So, buckle your seatbelt and stay safe! 

Hong Kong market had up for five consecutive days. At yesterday's closing, the futures market gained 152 points closing at 20895 while cash market closed at 20868.34, up 73.22 points or 0.35 percent. However, today is an extremely volatile day. Range of the day for June futures contract was traded between 20190-20999 (809). Immediate resistance for HSI is seen at 21157, next 21700. Supports- 20540, 20160. 

As for Malaysia market, KLCI Index futures ended at 1643 while cash market finished at 1639.98 at yesterday's closing. Range of the futures for morning session is traded between 1623-1638 (15). Support for KLCI is seen at 1605; resistance- 1650. 

What's happening in June?

May month is not that bad after all. Although there was a sell down at the beginning of the month, market started to rebound in the middle of the month. So, what's next in June?

Today the active futures contract for Hang Seng Index futures is June month and it was traded between 20294-20719 (425). Closing at 20474 (+157), it was 341 points discount compared to the cash market which closed at 20815.09 (+185.70).

For Hang Seng Index futures, we see next resistance at 20650. Next target 21000-21100. Downside supports are 20380, next 20100.

In Malaysia, today is the expiry for KLCI May futures contract. Market might consolidate between 1620-1640 in near future. Upside resistance, 1660; next 1680. Support 1608.

How low is market going?

All Asia Pacific market ended in red on Friday closing! Nikkei was the worst performing market finished down 1.41 percent. Followed by Malaysia down 1.26 percent then Hong Kong market, lost 0.99 percent.

Range of the week for Hang Seng Index spot futures was traded between 19448-20253 (805). The futures lost 199 points settled at 19604; cash market lost 196.17 points finished at 19719.29 on Friday afternoon.

KLCI Index spot futures was traded between 1610.50-1652.50 (42.00) during last trading week. Cash market lost 20.72 points finished at 1628.26 while May futures contract finished down 22.50 points at 1621.00.

Dow Jones dropped 185.18 closed at 17535.32 on Friday. We expect Asia market to open lower on Monday morning. For HSI, we see the support at 19000; and for KLCI, supports are 1600, next 1580. On the upside, short covering might push HSI to 19950 or higher to 20300. For KLCI, resistance is seen at 1640.

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.

Sell off on first trading day of the month

Despite Wall Street posted a gain of 117.52 points last night, the Asia market ended with a mixed result. Especially for the market who enjoyed a long weekend, first day of the month actually begin with a terrible sell off.

The worst performer is Nikkei who lost 518.67 or 3.11 percent at today's closing. Hang Seng Index broke 21000; settled at 20676.94, lost 390.11 points or 1.85 percent. FBM KLCI Index broke our predicted support; finished down 21.28 points at 1651.44.

The May futures contract for Hang Seng Index ended at 20545 (-309). Range of the day was traded between 20502-20984 (482). Immediate support for HSI is 20450. Next crucial support is 20000. As for KLCI spot futures, market ended at 1642.00, lost 20.50 points, about 1.27 percent. Near support is seen at 1640.0, further support is 1600.

Dow Jones falls 180 points at the moment. Will we see a further drop or recovery by tomorrow morning? Looks like another volatile selling is happening...

KLCI went further south...

FBM KLCI Index went further south today. Can we blame the news of bond default? The news shaken investors confidence, created an opportunity for market sell off. Cash market lost 17.58 points or 1.04 percent at the end of the day, April futures lost 23 points settled at 1670.50 while May futures contract ended at 1662.50 (-24.00).

In Hong Kong, futures market was a volatile trading session as today is the expiry of the April futures contract. Spot futures settled at 21470 (+180) while May futures contract finished at 21118 (-7). Range of the day for May contract was traded between 21122-21567 (445). The cash market gained 26.43 points finished at 21388.03.

Looks like Hang Seng Index is supported well above 21000 for the time being. But next month? Will we see higher high? Or lower low?

FBM KLCI Index is oversold within these few days. Will we see a rebound soon? 

FBM KLCI Index closed below 1700

We mentioned yesterday that FBM KLCI Index need a breakup or breakdown to break the boring trading range. Finally, we saw a breakthrough this afternoon thanks to 1MDB scandal - the default of $1.75 billion bond!

The spot futures open at 1712.0 in the morning, highest touched 1713. Futures contracts rollover activity plus the default news pressed the market all the way to 1702 in the morning session.  The support at 1700 couldn't hold on anymore. We saw market lowest went to 1690.0 before futures settled at 1691.0, lost 22 points. Cash market closed at 1692.50 (-22.01).

Immediate resistance for KLCI is seen at 1698. Higher resistance at 1706. On the downside, near support 1675, next 1650. Ringgit was weaker, last seen 1USD~ RM3.91.

Sell in May go away?

Market was range trading for the past one week. For Hang Seng Index, it manage to hold above 21000. The trading range for Hang Seng Index futures last week was traded between 21021-21664 (643). No matter how market falls, HSI is trading above daily MA10-21260, a sign of market is moving on a buying signal. The futures settled at 21291, lost 190 points at today's closing. For cash market, finished at 21304.44 (-162.60).

This week is the final week of the month. The futures market will start the contracts rollover activities and the long weekend is coming. How will the market moves? Will we see a higher high next week next month? Bear in mind, next month is May. The market is always spooked by the saying of "Sell in May and go away". Plus, Hong Kong market had been up since Chinese New Year, does it mean another correction coming?

Anyway, we sold Emperor Capital (HK:717) after a 10 percent profit within a month. We will look at it again if Sell in May comes. If not, we still have other stocks in hand for dividend collection in the second half of the year.

If 21500 had become resistance, 21000 is an important support for HSI. Further supports are seen at 20800, next 20450. On the upside, if market broke above recent high 21664, market will moves towards 21800, next target 22000. 

In Malaysia, FBM KLCI was ranging between 1700-1725 for the past one month. At today's closing, cash market closed at 1714.51, lost 3.45 points. The spot futures finished at 1713 (-6.50). KLCI Index need a breakthrough. The market need to break above 1730 to see a new trend. If not, breaking below 1700 will see supports at 1675, next 1650.

All Asian markets ended in green

After overnight Dow Jones closed up 164.84 @ 17721.25, today all Asian market ended in positive territory. Hong Kong market is the best performing market, surged 3.19 percent, Nikkei closed up 2.84 percent and Shanghai ended up 1.44 percent.

Hong Kong April futures market opened gap up 239 points in the morning. Lowest traded at 20691, market went highest reaching 21223 at the end of the trading day and finally settled at 21216, surged 746 points or 3.64 percent. Cash market finished at 21158.71, up 654.27.

In Malaysia, KLCI Index futures was traded between 1716.5-1724.5 (8.0). Futures closed up 7.5 points at 1721. Cash market gained 8.11 points settled at 1723.11.

Will market moves higher? Technically, Hang Seng Index broke crucial resistance- daily MA100-20557 and 21000. There is a chance market will move higher; with on and off profit taking comes in. Immediate resistance for HSI is at 21300, next 21500. On the downside, supports are 21080, next 20850.

KLCI Index still ranging between 1700-1725. This market need to break above 1730 to see a higher trading zone. 

Resistance ahead

It was a choppy week again for the market. The range of the week for Hang Seng Index spot futures was traded between 19967-20835 (868); while for KLCI Index futures, trading range was between 1704.5-1723.0 (18.5).

For those who are holding stocks, there might be no big difference in price fluctuation, unless the speculation stocks you are holding moved dramatically. For those who are in index trading, it is a good opportunity to make money provided you stand on the right side; if not stay away from volatility if you couldn't take it. It could be a bored session in the market if the stocks you are holding is not moving yet. But, be patience.

We see Hong Kong market might consolidate between 20000-21000; and for KL market, index will range between 1700-1730 in short term. The market need catalysts to break the upside resistance or downside support...

Ringgit is strengthened against USD again as we can see 1USD~RM3.88 today. We will monitor the currency market closely.

Since we just bought a property last week, we'll be spending more time in our new portfolio compare to the current market. However, we are trying to be multitasking so we wouldn't miss out any making money opportunity.

Is correction coming soon?

With overnight US Dow Jones closed up 107.66 @ 17792.75; we expect to see market open higher on Monday.

We see immediate resistance for KLCI Index at 1725. Next target-1750. Market might try to test the psychological support at 1700, further down 1675 is the next support.

There is no trading for Hong Kong and China market on Monday. Depending on how other Asian markets perform on Monday and how US behave on Monday closing, we see resistance for Hang Seng Index at 20900. If market can break above this level, we might see 21000 to 21300. On the downside, supports at 20300 and 20100. If market unable to hold above 20000, we might afraid short term will see 19800 or lower.

No matter how the market moves, we hope we will exercise our risk management strategy and never be afraid to buy during bargain hunting.

Market choppy, but slowly up

Though there was less update from us about the market lately, it doesn't mean we are on holiday again. We were spending some time in property hunting.

The market was choppy in the entire March month, but it was slowly inching up. The range for March Hang Seng Index Futures was traded between 18993-20891 (1898). The active futures contract is now April, with the day range between 20453-20835 (382), closed at 20499, lost 278 points on Friday evening due to profit taking before long weekend. Cash market settled at 20498.92, lost 277.78 or 1.34 percent. In Malaysia, cash market closed at 1710.55, down 7.03 points on last Friday. April futures contract lost 8 points, finished at 1704.50. 

We've added Emperor Capital (HK:717), one of the leading broker house in Hong Kong into our portfolio, and also Cash Finance Ser GP (HK:510). We are looking forward to add in a few holdings when market retraced and glad to hear about dividend payout from a few companies we are currently holding.

Market slowly moving up...

Looks like market is holding well above 1700 for KLCI Index and for Hang Seng Index, holding well above 20300. Is the bull getting tired? If you are holding shares which has paper profit, will you take profit now or wait a little longer? Maybe market might move differently after the Brussels Attack this afternoon. 

Hang Seng Index spot futures lost 68 points finished at 20607; cash market ended at 20666.75 (-17.40) at today's closing. FBM KLCI Index gained 6.39 points settled at 1724.75 while March futures ended up 4.50 points at 1724.00 on Tuesday evening. 

We see immediate resistance for KLCI Index at 1725. Next target 1750. Any correction will send market close to 1700. For HSI, immediate resistance is seen at 20850. If market can break above this level, there is a chance market will retest 21000. On the downside, supports at 20300, further at 19800.

On a separate note, USD is soften. We managed to see 1USD~RM3.99 today. While there are so many analysts out there predict whether is now the beginning of bull market or continuation of bear market, we think it is ok to stay invest in stock market and occasionally hedge against the futures market. Meanwhile, we had set aside some capital for property market too, although it is not cheap to get one now. If not now, then when?

Bull market? Or bear trap?

The market continued its gain this week. Hang Seng Index March futures gained 232 points closed at 20237 on Friday evening; cash market settled at 20199.60, up 215.18 or 1.08 percent.

Although tight range, it has been a volatile week, a fight between the bull and bear. The range of the week for spot futures was traded between 19813-20298 (485).

With overnight Dow Jones finished up 218.18 settled at 17213.31; market will open higher on Monday.  Resistance for HSI is seen at 20863, next is Daily SMA100-21017. Higher target 21500. Will market go that far next week? Or the end of rebound? We'll see. On the downside, 20300 had become the immediate support, next 19820; further down 19300.

In Malaysia, the market finally broke above 1700. FBM KLCI Index gained 5.63 points finished at 1696.54 on Friday evening; March futures ended up 6.00 points at 1697.50. Resistance for KLCI futures is seen at 1725, next 1775. Downside support is 1690, next 1675.

Market up since March

The Asia market ended higher this week, with Hang Seng Index closed up four consecutive days since the first day of March.

This week, the trading range for Hang Seng Index March futures contract was range between 18960-20184 (1224), closed at 20100 (+239), successfully hold above daily MA10 and MA20. Cash market ended at 20176.70, gain 234.94 points or 1.18 percent.

With overnight Dow Jones closed up 62.87 @ 17006.77, we expect the uptrend to be continued, possible with profit taking or small correction. The immediate resistance is expected at 20260, next 20600. Downside support 19950, 19770, further support-19200. 

In KL, March futures contract traded between 1646.0-1699.0 (53.0) since beginning of March. Spot futures gain 9 points, finished at 1695.90 on Friday evening; cash market settled at 1692.49 (+4.29). Upside resistance is seen at 1725 for KLCI futures. If this level is broken, a new uptrend will be formed. On the downside, supports is seen at 1690, next 1670.

We added a few stocks into our holdings. In Australia, a digital media company named Netccentric which was listed in ASX since last June; in Hong Kong, Tracker fund of Hong Kong (HK:2800) and Shun Tak Holdings (HK:242).

Rally begin?

Following US Dow Jones surged 348.58 at closing on Super Tuesday, Asia market all closed in positive territory, with Nikkei and Shanghai market closed more than 4 percent. 

Hang Seng Index futures opened at 19645, 321 points gap up above yesterday's closing price. The market was so excited it continued climbing to highest at 19995 in the afternoon before it settled at 19890 (+566). Cash market was traded to highest 20058.12, finished at 20003.49, gained 596.03 points or 3.07 percent, with a turnover of 92.68 billion. Hang Seng Index broke all the resistance we expected; currently we see immediate resistance at 20000, next 20260; supports-19750, next 19400. 

FBM KLCI Index surged 20.21 points closed at 1691.03. The March futures contract gained 16.50 points, finished at 1687.50. Today's range for spot month futures was trading between 1679.00-1689.50 (10.50). Resistance for KLCI futures-1700, next 1720.

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.