Sunday, June 17, 2018
Sectoral Trends in KLSE
Learning Corner : Sectoral check
Step 1 : Go to each sector-index ... check the weekly charts and plot the 20MA
Step 2 : Check if they are above or below 20MA. If they are below 20MA (weekly), go to daily chart to plot the 200MA ... and if it is below 200MA (daily) then, it is a DOWNTREND. Avoid is the best ...unless you are an investor to buy-hold-average-down.
Step 3 : If uptrend, then check the leaders in the sector ... those big-caps-giants ... and buy them if it is uptrending. HOLD till the trend is over. If prefer to take mid-cap or smaller-cap counters, we need more knowledge and experiences to pick good trending stocks for trading it up.
Step 4 : Buy-hold ... and watch it up ...till the trend is over. take profit and move on.
Consumer : the BEST uptrending sector (due to no-GST?) ... check Nestle, Dlady, Panamy and such leaders. Buy-uptrending-hold. Then ... check stocks such as Padini (breakout and strong uptrend) buy-hold and add. Do nothing till trend is over.
Construction : I traded the whole sector during 2016 up ... Gamuda, OKA, Chinhin, Econbhd etc etc ... today, so many tumbling down due to GE14. Some rebounded well after the 'news' stating that MAYBE HSR is not cancelled ... Gkent, Econbhd, HSSEB, Gabungan ... these shot up crazily. Be aware that these are strong downtreding and if you are NOT a trader, avoid is the best advice.
Finance : After the GE14, it broken the 20MA uptrend line ... and now, we shall see the start of downtrend ... in Maybank, CIMB ... perhaps even PBBank.
Plantation : sideway and at support but below 20MA ... note that MANY smaller plantation-stocks at new low or 52-w low ... yet, the index is well supported? Check KLK, Simeplt and such ... these giants are heavier weightage in the index. So ... buy only into big-caps uptrending such as IOICorp. But when it comes to good-valuations, I do find few stocks trading at huge discount. I m not an investor, so ... no intention to park funds into them.
Properties : Another sector to avoid and strong downtrending ... many at new lows too.
Technology : Rebounded sharply (MPI, GTronic, Inari, Unisem and such) and back above 20MA. Is it sustainable and supported? I do still like some of those mentioned counters.
Another two sectors : Trading & Service and Industrial Products ... they are mixed, many over-lapping biz.
Time to rest.
Have a nice week ahead and HAPPY FATHER'S day