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jiunn

jiunn | Joined since 2018-06-29

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Stock: [SUPERMX]: SUPERMAX CORPORATION BHD

2020-03-19 15:25 | Report Abuse

^^^USD/MYR: SET FOR REBOUNDS??!!

The weakness of MYR applies across the board among ASEAN currency. This sharp decline is due to fear of market turmoil & uncertainty brought on by the political unrest a month ago. The momentum of the fall will take a life of its own, which does not reflect the underlying fundamental of the economy. In this difficult times, we have to make the best of this situation. One of the things that you should avoid is to buy foreign currencies for speculative purpose. I won't be surprised if the MYR would snap back that I can see foreign funds eyeing Malaysian stocks for the simple reasons that if everything returns to normal, they will make capital gain plus an easy 15% -20% forex gain.

After a depreciation of 7% over the past 2 months, MYR is set to test its technical resistance. The USD-MYR chart shows that the upward channel forming a CLEAR TRIPLE TOP formation. The recent weakness in MYR has pushed the USD to the upper boundary of that channel. For fundamental reason, I do not think that MYR to break above the level of 4.500. I expect BNM to support the MYR in order to keep USD-MYR back within 4,000-4,100.

If this TRIPLE TOP reversal becomes full blown, all stocks that had benefited from the weakening of MYR would have to give back their gain. Thus, we may see a sharp reversal for exporters, such as rubber glove producers.

MY BETS: PLACE YOUR CHIPS NOW ON BANKING STOCKS FOR OVER 20% REBOUNDS!!!

Happy Trading!! Huat HUat AAARRRRR!!!

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Stock: [TOPGLOV]: TOP GLOVE CORPORATION BHD

2020-03-18 15:58 | Report Abuse

^^^TOPGLOVE: TO SELL OR NOT TO SELL??!!

Recently, I called up my friends to recommend that they should reduce their GLOVE STOCKS position in the market, in line with my view that the market is rather frothy & that a correction - when it finally comes - would be very sharp.

While not expecting everyone to agree, I was happy that most of them see my point. However, what's surprising me is majority whom'd agree with me, do not want to reduce their position.

Here is some of the reasons given for not selling:

1) The rally must go up one more time before a sharp correction can happen;
2) The interest rate offered by banks is so low that it's better to stay in the GLOVE high return stocks;
3) Earning margin to hit over 4-folds in YR20/21 due to highly demands;
4) Depreciation of MYR against USD.

So, what's next?

Some say that the end of a BULL RUN is often characterized by the sell-off in the weaker stocks. With that in mind, we can see that two of the rubber glove, Supermx & Comfort had broken their respective uptrend line below 200-SMA while the Big3 had pulled back losing steam to its uptrend line still above 200-SMA yet, the ample BEARISH DIVERGENCE has emerged significantly and this may show waning upside in near term.

While I believe the rubber glove sector had peaked & could begin to channel down for correction before next upleg, it is advisable to avoid adding aggressively our position in this sector. The preferred strategy is SLOW accumulation as the share prices ease back to the next strong horizontal support.

Trading Idea: Support 5,40 to indicate "RALLY" validity before next uplegs. If breaks, may test 5,08 or lower for much more correction!!

Happy Trading!! Huat Huat AAARRRRRR!!!

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