Investment Note - Jul 2013

Dear Investor,

Good Day! Not long ago, we just past the first half of 2013. Overall, most of the stock markets still in the happy mood, especially US, where we see Dow Index near all time high of 15,450. Thanks for the QE (or I call it printing money policy), hot money is floating every where from stocks to property.

.

Now, the question to ask, when the party going to end? Or when US will stop QE? From the latest indication, seem coming December, US will going to review it. Maybe they will stop QE at 1st quarter or 2nd quarter of 2014, but again, depend on the employment and economy data. We may not know when, but at least we know the party will not going to end this year. We can follow closely the indication, perhaps when the Gold price start to go up or when their interest rate (10 year treasury rate) start to go up, then it may be the time.

.

Back to Malaysia, Bursa is also doing very good, the KLCI index rises to all time high level. Making money in stock market is easy or not? It's very easy, if you know how to make use of good news and ride on it. For example, Puncak and other water related stock, when the news came out, we already know these stocks will become black horse. (but now, I am not suggest to buy this stocks, as it's already over run right now).

So, what is the next Blue Chip one can buy? I suggest, IOI and Tenaga, they going to announce good news (in fact, most of public already know) in next few months, hence, I will suggest investors try to accumulate these 2 stocks when their share price turn red. When to sell? Sell when IOI announce the date they distribute IOI Property. For Tenaga, sell when they announce getting approval to raise electric tariff.

.

For those who follow my advise last month to buy CIMBC25, now it the time to see the result. You may slowly sell batch by batch in next few days when you see the high volume day. (those who want to know how to trade this stock, please refer my blog)

.

Last, if you want to chase the running stock, don't chase it at high price. Try to enter when there's a pullback (the pullback must on low volume) If it’s on high volume, it means that institutional investors are selling!

.

That's all for now! Happy Investing!