SGX - A 12% Drop Today

If things is not bad in the Singapore market, it's worse now for most of the blue chips as a major and heavy drop in SGX today with 12% down. There was some bad news today from the stock but more importantly, the chart has some profit taking past few days and suddenly, sellers came in to take control. The rebound and the effort for the past few months were all wasted in today's drop. As I kept saying that I won't be trading Singapore stocks and no investments on it, it's currently showing signs of fatigue. Read the below bad news which caused the price to drop.

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*SGX - Loss of MSCI equity derivatives ex SG to HKEx to dent derivatives business*

Maybank KE Retail Research

SGX is letting its licence agreement with global index publisher MSCI, other than for MSCI Singapore index products, expire in Feb '21 after losing it to Hong Kong Stock Exchange.

However, MSCI Singapore futures and options will remain listed on SGX. The parties will both work to extend this partnership well beyond 2021.

The group will work closely with the relevant stakeholders in managing their open interest as it gradually discontinues its MSCI equity index futures and options contracts, except for MSCI Singapore, next year.

According to management, there could have a near-term impact on its equities derivatives business as MSCI contracts (comprising MSCI Taiwan, MSCI Indonesia, MSCI Net Total Return) constitute ~15% of equity derivatives daily average volume (DAV) and ~12% of total derivatives DAV.

On a 12-month pro forma basis, this translates to a 10-15% dent on FY21 earnings before any mitigating action. Overall, equity derivatives accounted for 36% of SGX's 3QFY20 group revenue.

While the exchange's multi-asset portfolio shelf has reached a critical mass, it will continue to broaden and deepen coverage of Asia by developing more derivatives products on its own or in collaboration with partners.

Earlier this month, it entered into a long-term strategic partnership with AMTD Int'l to promote the development of Singapore’s capital markets and strengthen connectivity between ASEAN, the Greater Bay Area, the rest of China and the Middle East.

In Apr, it signed a wide-ranging strategic cooperation with China’s CITIC Securities to collaborate across in fixed income, currencies and commodities, REITs as well as equity, debt capital markets.

Overall, we believe this latest development is negative for the local exchange operator and expect consensus estimate to be revised downwards.

Valuation wise, SGX is trading at 23.2x FY20e P/E and 3% yield.

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Scoring High Points

The Top 30 Volume today is vibrant and the market is currently very hot now. Many stocks are moving and the best stock was SGX as it rampant up so fast in like 10 minutes. The good results combined with the CD was the key for this rise. See the 5 minute chart, there was strong buying and after that the sellers weren't strong too which contributed to the rise. It was like the sellers retreated and allow the buyers to take control where the stock gap up and moved even higher today.  It's the stock for now and it's a stock to watch out for. :)

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Crazy Run Up

SGX just shot up so crazily since opening this morning. What a powerful run but I couldn't see why it ran so much until the CD came in. Many were chasing and I expect the bull to simmer down a little first before moving higher. I did not know that the results was going to be released today until I saw the news. The chart was beautifully setup before the results was released. However, this counter is very flushy up/down and hence sometimes it's very difficult to trade it.

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Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - 25% Jump in Net Profits

SGX just reported earnings and the net profit jumped. It was a good earnings where the stock price reflected.

https://www.businesstimes.com.sg/companies-markets/sgx-q1-profit-up-25-highest-quarterly-profit-in-over-10-years

It's currently in the Top Volume with rising price and it just continued to soar. Nice chart before the rise but pretty choppy in the daily and minute chart. Well, congrats to those who went long before the earnings.

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Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Traded 13 Lots

SGX had a sudden burst of strength and the stock shot up after my last blog post earlier.

http://stockmarketmindgames.blogspot.com/2019/05/sgx-stock-rebounding.html

Decided to lock in profits for short term and got my students to lock in short term profits too. This is a slow stock but suddenly it turned to break out today. Short term wise I would lock in profits but in the bigger picture, one can still look to swing this stock. Traded 13 lots at 7.50 this morning and sold 7.57. Not big profits but enough for my meals today. Moving to the next stock. SGX touched 7.63 high and I am pleased that my students also locked in profits with me. He took a little higher price than me on the profits but I am happy regardless.

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Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Stock Rebounding

The Dow dropped almost -300 points last evening but many stocks were holding strong here in Singapore while some started to show strength and rebounded. Most blue chips started to bounce up but only the oil and gas sector remained weak and got sold down as compared to other blue chips.

I think SGX looks strong as posted on my blog some days back since it has built a strong base and it's starting to break a wall maybe soon? From that day when I posted till now, the stock price maintained well supported and even touched 7.54 high today. See the white line drew in the chart, that's the base forming and the stock remained well supported even though the market had a downfall for the past few days. I think it might breakout soon. Let's see

http://stockmarketmindgames.blogspot.com/2019/05/sgx-staying-strong-pt-2.html

http://stockmarketmindgames.blogspot.com/2019/05/sgx-staying-strong.html

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Staying Strong, Pt 2

Take a look at SGX, after some simmering action yesterday, the stock went past yesterday's high and maintained strong there as of now. The Top Volume appearance combined with the rising price, it just proved that the base was built strong for a rise. However like I mentioned in my last blog post, I would trade cautiously on this counter since the stock can be quite choppy. Study the Top Volume, see how it appeared and disappeared and then rose up before taking a shadow at the back seat. All these are important clues for stock's prices movements.

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Staying Strong

SGX is staying strong with price moving upwards despite the overall market selling. There is no news yet but from the chart there was a base building and the stock broke out of the base. The chart doesn't look convincing but well, the stock still broke out. Is it ready to move higher with buyers moving up the price, I would trade cautiously on this counter because it's pretty choppy as you can see from the 5 minute chart. I think the market is reacting to HSI and the Dow yesterday since it was close. Once today is over, we shall have a clearer view of the market direction.

Ronald K - Market Psychologist - A Stock Market Opportunist

Trades for the Month - Small Losses, Good Gains

This is not my trade history but my student's. It's an impressive win for the month of February for him since there was so much opportunity for trading the market with ease. From ocbc, wilmar to some other indices and USA stocks, I think it's just a impressive record since he's working on his trades everyday. I mean come on, if he can do it, everybody has a chance to achieve it too. Success is not about how much you know but rather how hungry and how determined you want it. You have to work for it and you need to have passion for it. Trading Singapore and USA stocks were pretty easy to navigate if you can spot the turning points and the areas where trades are the most easy to take. I need to drive more people to make more trades like this. Although there are losses, it's always made up from the wins later on. Congrats!

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - $710 Profits from Wall

This record is not mine. It's my student and it's a good $710 in 1 contra day. The wall in SGX chart as attached above was trying to break and indeed it broke through today. I was pleased to see this powerful and good record since I shared a wall in my course and my private sharing sessions. The skill was put into a real battle and the results speak for itself. I will replicate more of these trades soon. It's not difficult to do just execution and finishing the job clean.

Ronald K - Market Psychologist - A Stock Market Opportunist

SGX - Trading with Profits

SGX is not the easiest stock at the moment but I was pleased to see records coming in and students are making some good $ off from the stock during this tough market conditions. Looking at the chart, it's pretty choppy and the signals there were pretty mixed until there was a sharp decline where some panic selling was encountered before the stock started to rebound back up again. Once again, congrats to the gentlemen who got the job done and riding on to this trade.



Ronald K - Market Psychologist - A Stock Market Opportunist

Singapore Straits Times Index - Gap Up Today

The market gap up today after a few days of sluggish movements. Many banks moved and many other blue chips followed. During this period of tough volatile market, it's only wise to trade blue chips and today was just the very unexpected as the market gap up so much without any signal whatsoever. I am pleased that most of the sharing sessions I conducted was able to get my students into some profits for the week. Thanks everyone for coming for my private event. The Top Volume today contains some very good stocks to put in your watchlist. Looking forward to the next sharing.

Ronald K - Market Psychologist - A Stock Market Opportunist