Jardine C & C: entry opportunity

Jardine C & C share price has tumbled for the last two weeks and bottoming opportunites have arisen. The stochastic indicator is going beyond the 20% mark signifiying oversold. $16.18 has also been a strong resistance line since sept 2007.



In my opinion, good buy in price is between $16.2 and $16.4. For those who prefer to see a trend confirmation before entry, $17.38 is the price to look at based on current prices.

Good time to buy in GLD10US$

StreetTracks Gold shares fell by almost 2 dollars today to close at $88.84 as the US Dollar strengthen against the EURO, reducing the demand for the precious metal as a hedge against further drop in the US dollar. GLD shows strong short term support below the US$89 mark. If GLD was to further decline in tomorrow trading, it would present great opportunity for buying in, even for the short term

China S shares

China S shares has increased significantly due to an improved sentiment propped up by the new share sale rule by the chinese government. For the last two days, china s shares has been accounting for most of the volume traded on sgx.

for today:
ChinaNtown up 3.8% to 0.275
ChinaHongXing up 0.8% to 0.655
yangzijiang up 3.6% to 1.02
Li heng up 5.1% to 0.725
china sun up 8.5% to 0.32
sinotechfib up 12.5% to 0.81
Ferrochina up 7.2% to 1.49
ChinaZaino up 5.7% to 0.555
Coscocorp up 2.9% to 3.5
ChinaXLX up 5.3% to 0.895
JES up 4% to 0.39
Chinaoilfield up 2% to 0.505
ChinaAelec up 2.2% to 0.235

some however have lost steam:
Chinaenergy down 0.8% to 0.585
chinaEratat down 6.7% to 0.35
Synear down 3% to 0.645

So should we avoid the s shares and possibly miss out on the rally? For those who are willing to take some risk, i have a few recommendations.

ChinaXLX fertiliser
yesterday reported a net profit surge of 42.2%, in line with expectation. With rising food prices, the china government is spending more on subsides for agricultural products. Demand for urea and compound fertiliser are also expected to grow.

China farm equipment
The chinese government has pledged an additional SGD 5 billion of subsidies to boost govt spending on agriculture . the government emphasis on increasing output on on agricultral products put the company in good stead.

What is a CFD?

CFD stands for contracts for difference. It is an instrument for traders to take long or short position in a share counter without having the share itself. The price of the CFD mirrors the performance of the stock itself and the profit or loss is determined by the difference between the buy and sell price.

The benefits of CFDs are:
Can be used to sell high and buy low without the penalties of short-selling stock
Unlike options and warrants, it does not expire and therefore does not have time decay
Easy to price because they mirror the exchange traded price of the underlying instrument
Can be a good hedge to a long stock portfolio if the CFDs of the same stocks are short i.e. to achieve market-neutral exposure.
Therefore CFDs can be used in the following manner:
Make money in any market condition. So instead of standing on the sidelines in a falling market, bears can sell high buy low to make money.
Protect the downside for long term investors who hold a long stock portfolio for income or growth reasons.

Why gold is a good investment?

1)Gold always rises in times of uncertainty. It has historically been the best store of value. Be it war, widespread inflation, depression or the likelihood of the above mentioned,demand for gold will rise
2) The US dollar is the reserve currency and many countries uses the US Dollar to underpin the issue of their own currency. With the fall of the US dollar to new low levels, the EURO and GOLD bullion are much better choices.

3)Gold should do well in extreme bear markets. Silver increased in value more than double from 1932 to 1936 during the Great Depression (the price of gold was fixed by the government). The next long bear market was 1968-1980. Silver rose from around $2 in 1968 to a peak near $50 in 1980

My trading philosophy

1. trading is like a business. There is no need to trade everyday for the sake of trading. Keep your cost low.
2.History always repeat itself. The key is detecting the trend.
3. Use of both fundamental and technical data improves the probablity of winning
4.Place a stoploss. Nobody is correct all the time. if you make a wrong bet, your losses are limited.