Good evening everyone,
We had live trade for our new batch of Diff Grads today and made $$$ shorting HK this morning.
I learnt this expression “mencret” from one of our Diff Grads when HK kept free falling till it supports about 300 plus points lower from its OP.
Rest of the Asian markets were not spared. NK was bullish in early trading but gave up all its winnings to close near the low. As expected, JKSCI was not spared by the region’s “mencret” – It couldn’t stay above 2377 as mentioned in my blog earlier and sell down to close the the DL.
So I guess the question that everyone has on his/her mind will be:
“Is it safe for me to buy stocks? Will it go down further?”
Let’s look at my homework
Overall indicators are bearish. Despite breaking below Diff S/L (2338), it managed to closed above it. This is a sign of potential reversal on JKSCI. My take on the market:
- Depending on the region’s performance, JKSCI may sell down in early trading to break below Diff S/L and V3Go SC (2346)
- If JKSCI can be supported at 2328 (LB) and start to recover back above 2338, good chance of a recovery in the market since the market has sold down by a considerable amount.
During the live trade, we look at the 2 stocks in my stock pick based on Diff last week:
- Lippo Karawaci (LPKR): We took small losses at 680 (DL at 640)
- Perusashaan Gas Negara (PGAS): We book 50% profit at 3525 (1V) and left 50% to hold.
Perhaps you may think that the gains on PGAS is not much as compared to previous day gains. However, do note that PGAS managed to end POSITIVE while JKSCI forms a long down candle to end at DAY LOW!!! This indicates presence of buying interest on the counter!
Strictly speaking there’s isn’t stocks that fulfilled my criteria of both Diff and ROC (PGAS, despite closing above Diff R/L, forms a narrowing ROC). My take:
- Your stock counters are likely to sell down lower below OP but if it managed to stay above OP. Good chance of a strong recover when JKSCI recovers.
Good Luck!
CK
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