Dear Friends,
It hasn't been pretty in America or Asia. Dow has dropped from 13661 to a low of 12756 in 1 month. A decrease by 905 points or 6.6%. Nasdaq has dropped from 3196 to a low of 2883, a decrease of 9.8%. STI has dropped from 3110 to 2883, a drop if 7.3%. KLCI has dropped from 1679 to 1636, a drop of only 2.6%.
Yesterday, America again showed weakness in its closing. Gained by 80 points mid day but closed 59 points down in the end. This movement indicates confidence is not there. It is advisable to stay in the sidelines unless the confidence is seen or when this fiscal cliff issue has some positive progress.
Just be more cautious in selecting the right stocks. Not all stocks have been going down hard though. Something that I have emphasized again and again. If you want to look for stocks, look for those that have done well in earnings. You would know it by looking at the direction on earnings day.
In Singapore Ezion has been running to a high of $1.5, against all odds. The reason is bcos of strong earnings. This is the first company that reached our profit target in our list of recommendations last month.
http://www.danielloh.com/search/label/Singapore%20Stock%20Tip%20%28Using%20ART%20system%29
Ausgroup and China Minzhong has fallen a few cents while First Resources and Yoma has been at around the same price since we last posted.
With the big caps tumbling (like Semp Marine and Semp Corp or Keppel Corp), I think these companies are slightly a bit more resistant.
The thing is now I don't recommend you to enter any of the stocks when the trend is down now. Just wait for the market to turn bullish again, and we study the stocks again.
Rgds
Daniel
www.danielloh.com
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