Monday, July 11, 2016
Property Stocks can buy ar?
Question : Mr Teh, do you think property-sector is bottoming? Can we buy into XYZ as I m stuck ... some 30% down from ABC level?
Answer : I don't know ... but I will not consider property counters, abandoned the whole sector since 2014.
Properties Index : From the chart, at early of 2014, I traded the whole sectors ... stocks such as SPSetia, Malton, GOB, HuaYang, Tambun, Ivory, PJDev, MKLand, UOADev, IOIPg, KSL and more ... but since the reversal of properties-index, I exited and abandoned the whole sector.
DO NOT fall in love with your stocks.
This is an example chart of a property counter : KSL
During the rally, you could see how strong the trend could be. ALWAYS check the properties-index ... and go with that.
KSL trading with low volume around RM1.10 level ... we may see it drifting lower to the base around 98cents. This is a weekly chart, mind you ... can you see that each rebound hitting resistance and continues it DOWNTREND?
Current resistance of KSL at around RM1.25 level, which means a SELL around there, technically speaking. Lower-low forming ... and we are expecting the highs are lowering too.
I have abandoned the whole sector but recently I m seeing some positiveness in the porperties-index ... which counters rebounding?
UEMS ... was an index-linked and trading above RM3 ... and now, we are seeing around RM1, with lower around 80cents. UEMS ... the S = Sunrise, which I used to like. This huge giant were in huge downtrend, pulling the properties-index with her.
UEMS ... zooming in ... to check on the consolidation level now ... sideway. Yeah ... buy RM1 (100lots = RM10k) and sell RM1.05 ... to profit RM500. Why not?
There ... the daily chart could be clearer ... buy around RM1-RM1.02 ... cut-loss if below 99cents, and sell around RM1.10. Get what I mean by good risk-reward sideway trading? Can trade la ... but is the sector in play?
Definitely I could sit here posting more charts ... as traders see and use charts. But, I always check the INDEX first ...
SPSetia weekly chart ... nice, right?
It is just not in play ... so, my focus still in construction, the theme-play at the moment.
Lets check the INDEX's chart ...
Construction Index ... weekly chart. Nice? Then, focus in construction stocks, instead of property, right?
Another sector in play is REITS.
IGBReits : Buy la ... strong uptrend leh
PavReit : going into newhigh ... breakout of RM1.80 soon ... no need software or indicators to tell us this is UPTREND and simple naked chart telling us (base on volumes too) that funds being defensive and moving into dividend-yield sector, REITS.
SunReit : My fav ... bought around RM1.20 previously ... dividend around 6-7% at that level ... and I still could not find a parking-lot at Pyramid during weekend, get me?
The leader ... KLCC at new high
KLCC ... going higher ... no stopping. BUY into these strong uptrend ... and not looking into property-stocks la, logic?
So ... I bought into TNLogis due to the REITS-play and breakout?
Note : Buy REITS and ride on the trend. Why bother to average down the property-stocks?