The Bear is here...

The selling pressure in Asia market continue today after experienced a technical rebound yesterday.

At yesterday's trading session, Hang Seng Index futures rebounded to 19647, the highest of the week before broke below the psychological level 19000 this morning.

Technically speaking, the Hong Kong and Japan market is now in bear market. A bear market is defined as a price declined of 20 percent or more over at least 2 months of period or from the peak of the price.

Looking at Nikkei 225, today's closing at 16416.19, a decline of 21.65 percent from the peak since last August. Shanghai Composite Index ended at 2976.52, 42.50 percent slump from June 2015.

Today, the Hang Seng Index futures opened gap down 341 points at 19280. Market dived very quickly in the morning breaking below 19000, marked the low for more than 3.5 years. The index futures ranged between 18762-19343 (581) for the day. At the end of the closing, futures ended at 18847 (-774), cash market finished at 18886.30 (-749.51), down 3.8 percent. The closing for Hang Seng Index is a drop of 33.9 percent from last year's peak.

The market is on heavy diarrhea. There is no prescriptions from any politicians or any policy yet. During the stockmarket crash in 2008, we have Quantitative Easing to stop the diarrhea. But this time, what would that be? While there is no prescriptions available yet, we think the best solution is eat healthy and stay hydrated. Which means, while there is risk and opportunities in the wild swing market, take the calculated risk, manage the risk and always protect the profit and capital.

The Bear Is Here?

Once again, Dow Jones dropped 390.97 on Friday closing, ended below 16000 @ 15988.08. The selling will continue on Monday...

Hang Seng Index closed lower at 19520.77 (-296.64); futures ended at 19468 (-342) on Friday. Be prepare to see a lower index for HSI, key support at 19000. However, market is oversold. Any rebound likely will reach 19800 or higher 20200.

FBM KLCI Index finished at 1628.55, down 4.89; spot futures closed at 1615.00 (-15.00). Next support --1580.

Dow plunged 365 points again

We have to get used to the words like tumbles, plunges, slumps etc. These are the words appearing on financial news very often lately.

Again, the overnight Dow Jones closed down sharply. DJIA ended at 16151.41, falls 364.81, equivalent to 2.21 percent.

There is no escape for the Asia Pacific markets. The market was in deep red sea in the morning, except Shanghai market closed in positive, the rest of the Asia Pacific market closed in red. 

In Hong Kong, Hang Seng Index broke year low again. The cash market closed down at 19817.41 (-117.47) at the end the day while January futures contract ended at 19810 (-249); losses narrowed after short covering during second half of the trading session. Range of the day for January futures contract was ranged between 19468-19893 (425).

In Malaysia, FBM KLCI Index dropped 9.10, ended at 1633.44 for cash market and futures, closed down 15 points at 1630.00. Futures market traded between 1624.50-1636.00 (11.50).

It is a tough start for the year and we think there is going to be a wealth shuffle in the year of 2016. There is a risk in certain business closure and retrenchment. Having said that, whatever goes up will come down, whatever comes down will go up. We wouldn't be surprised to see a new trend or market rise up.

With the way market falls, we are not far away from the bear market. But who knows where is the trough. While it is hard to predict where is the dip and when it is over, we think it's best to hold cash and spend wisely. When we see the big title of "bear is here" in the headlines, or people around you are not interested in the stock market, that is the hint we should start buying.

HSI plunged 565 closed @ 19888.50

The Asia Pacific markets went southbound again, closing in red with Nikkei closed down 0.40 percent and Shanghai Composite Index ended 5.29 percent lower.

Hang Seng Index broke below 20000, a level not seen since June 2013. The cash market closed at 19888.50 (-565.21), down 2.76 percent. Jan Futures ended 456 points lower, closed at 19943. Today the range for spot month futures contract was traded between 19820-20066 (246).

From the technical point of view, HSI is not looking good. Any bad news will trigger market moves towards the lowest level in 2013, which is 19395. Next support 17857. On the upside, resistance is seen at 20835.

Is this a good time to buy stocks? Depends. It depends on your holding power--financially and mentally. If you have a pile of extra cash which you don't need it, yes you can start collecting quality stocks. Bear in mind, the market sentiments and investors confidence is low at the moment, you'll need time and patience to go through the rough time.

If the portfolio you are holding is full of high dividend and quality stocks, you might experience a wild ride in short term, but long term, we think is fine. If the portfolio is full of speculation stocks, we are afraid you might need to restructure your portfolio at this moment. This is what we think. 

No one knows how low the market will go and how long it will last before we see good days. No matter you are a buyer or short seller, market is full of excitement. Bucket your seat belt and happy trading!

Market closed mixed for the week

The Asia Pacific market closed mixed on Friday after days of sell-off. Apart from Japan, the Australian and New Zealand market ended negative, the rest of Asia market closed in positive territory. But, is this positive gain in Asia market a short one?

Dow Jones finished at 16346.45 on Friday, lost 167.65 points. Since DJIA ended in red, we think the market will open lower again on Monday morning.

Hang Seng Index closed +120.37 @ 20453.71 while January futures contract closed up 51 @ 20399. The entire range for the week for spot futures ranged between 20255-21850 (1595). We think 20000 is the crucial psychological support for HSI. Is the market going to break below 20000 tomorrow? 

In Malaysia, FBM KLCI was traded between 1637.50-1697.50 (60) last trading week. The cash market finished at 1657.61 (+2.48); spot futures closed +7 @ 1654.50. We see 1625 as the next support for KLCI, upside resistant 1680.

The Sell off continues...

On the last trading day of year 2015, Hang Seng Index closed at 21914.40. At today's closing, HSI closed at 20333.34 (-647.47). Hong Kong market lost 1581.06 points since first trading day of the year, a shock after China stock market being suspended twice within four trading days. For FBM KLCI, it closed at 1692.51 last year and today, finished at 1655.13 (-12.84); lost 37.38 points within a week.

It is not a good start for the year; but hey, keep calm and start hunting for bargain stocks. It is not a good week if you've invested in stocks since beginning of the year. But for trading, the wild swing presents opportunities to make money. Watch your risk, cut losses quickly if you're on the wrong side of the trade; don't be greedy and be prepare to take profit if you see paper profit in your trade. We are sure with these two rules in mind, this is a week full of trading and money making opportunities.

At this stage, it is hard to pick stocks as the global market sentiments is pessimistic and full of negative news. We think holding index related ETF ( Exchange Traded Funds) is more appropriate at this moment. The rebound in index will moves index ETF, but not all individual stocks will follow.

We think can keep an eye on Index related ETF such as HK2800-Tracker Fund of Hong Kong which tracks Hang Seng Index; HK3084- Value Japan ETF Fund that follows Japanese market, HK2822 or HK2823- if you think it is still alright to bet on China's upside and lastly in Malaysia, MY:0820EA and MY:0823EA, ETF that tracks Malaysia and Hong Kong's benchmark index.

Hello and Welcome to 2016!

Today is the first trading day of the year of 2016. Welcome to 2016 and we hope it is a good start of the year.

On last Thursday, DJIA closed at 17425.03, lost 178.84 on the last trading day of the year of 2015. Because of this, we expect Asian market to open lower on Monday morning. After that, how will market behaves on first trading day of the year? Open low and end up in positive territory by end of the day? Or open low and close lower at final trading hours? Are retail and institutional investors ready to back to stock market after the festive season?

We believe there will be a Chinese New Year rally in the next few weeks. Chinese New Year also known as Lunar New Year is a big celebration in China, Hong Kong, Macau, Taiwan, as well as Chinese Ethnic in Malaysia, Singapore and the rest of the world. However, only the mentioned countries and a few are entitled for public holiday.

This year's Chinese New Year- the year of Monkey falls on the 8th of February (Monday), which is just a month away. If there is a CNY rally, we think it's going to be a short and quick one. Profit taking will comes in before CNY as investors close off position to cash in profit.

Looking at Hang Seng Index, the monthly SMA-21782 is a crucial support/resistant. This meaning if market falls below 21782, further support we see is 20984. If market managed to hold firm above this level- 21782, it will try to test upside resistant at 22222.

As for KLCI Index, the first support we see for the coming trading week is at 1675, further 1650 and 1625. Resistant-1700 and 1725.