Dear fellow traders, I am back after 2 weeks of trade. Market has been turbulent. Some bargain hunters made good money from small and mid cap counters. Kudos to all. My position remain cautious but will incline towards counters which I foresee good quarterly results to be announced in the month of May.

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Macro View: (~) US Fed outlook remains uncertain following Yellen's warning that the equity market valuation is on the high side. Greece remains a wildcard despite the temporary settlement of IMF loan. Asia has been sideways in general despite the cut of interest rate by China. Hang Seng index especially appeared subdued until Friday where it shot up to a high of 680 points. Oil hovered around USD50 and USD65 respectively for WTI and Brent.

Potential Risk in Global / Domestic Market: (-ve) Locally, FBMKLCI drop to a low of 1794 points last 2 weeks due to profit taking and consolidation until it rebounded to close at 1811 Friday. BNM provided some level of comfort where Zeti said steady rise in income and steady labour market ensure the country's economy remain in good heath. Sadly, I once again disagree. I understand the importance of being a voice of calm in times of volatility, however there is no denying that 1MDB (Politics in the country) is truly getting out of hand following the recent land sale fiasco and early call back of loan by foreign banks. Additionally, the "Mutual Separation Scheme" by CIMB is a clear sign on contradiction to the health of economy. While it is masked as a general cost cutting and reform initiative, this is the first time a bank in Malaysia has conducted such scheme in a long while. Details of the impact will surely flow out in time. 

Contra Picks: None

I remain cautious. Please trade carefully and observe the movement before entering. 

Short Term Picks: Signature International (TP RM3.00)

I am moving Sign from long term pick to a short term pick due to its stellar run up in the past 3 days last week. I am extremely happy with this counter due to the earlier than expected momentum. I believe it is still a long term hold but as the quarterly results will be announced soon, I believe there is a good chance it will move up toward my TP sooner than later.

Mid Term Picks:  Gadang (TP RM1.96)

Gadang was one of the few stars last week during bargain hunting. It gapped up to a high of RM1.63 on the day before settling at RM1.60. It is my mid term hold where my TP offers opportunity to buy in and accummulation for future run up. Upcoming results may trigger further upwards movement.

Long Term Picks: Hohup (TP RM1.80)

HoHup had strong support around RM1.35 for the past 2 weeks when KLCI was consolidating. There is no doubt it is fundamentally sound counter and even if there is some concern of majority shareholder selling the shares, it is just selling in small quantum. I will switch it to a long term hold and continue to look for opportunity to buy on weakness. 

Food for thought: Smart doesn't come out of books, it is about making the right decisions!

May good fortune come your way!

Disclaimer: This is not a recommendation to trade. It is merely the expression of the author's personal opinion and shall not be held responsbile for potential gains or losses executed by readers.