Throughout the week, we believe those that follow us on M+ Wiz may face some challenges entering and exiting your position due to the negative market forces that continue to selldown stock market. The selling was rampant across the board and healthcare segment to a big hit last week, down11%, while technology stocks fell 5.5%.
Our virtual portfolio was down in the middle of the week, but managed to recover on Friday, lifted by one of the hospitality stocks, MERIDIAN. Overall it was up by 4.22% (excluding brokerage, stamp duty and clearing fees).
Source: M+ Wiz list triggered stocks
To be aggressive or To stay neutral?
Now, we believe most of the charts have turned better due to sharp selldown and rebounded last Friday. Hence, traders will be asking whether we should go aggressive to accumulate or trade the rebound only.
I will just provide some technical analysis on FBM ACE and FBM Small Cap Index for your reference.
FBM Small Cap – Violated below the symmetrical band and rebound into the triangle
Despite the earlier selldown below the lower band of the symmetrical triangle formation, it has rebounded off the SMA200 and back into the triangle pattern. Based on the information, we believe there is still some room for the current rebound, next resistance will be at 14,000-14,400.
FBM ACE – Supported along 9,467 and formed a bullish engulfing bar
Following the bearish engulfing candle formed on 3rd of Sept, the ACE index has taken some negative moments until Friday’s closing. It then formed a bullish bar along 9,467 level. This suggests that there could be some rebound over the near term. Should it revisited 11,364 and breaches above this level, the uptrend will be intact at least to 12,000-12,500 levels.
Thus, based on the above two small cap and lower liner index, the chances of making good profits will be seen over this week, at least.
Nevertheless, we will continue to cherry pick stocks from the universe and let M+ Wiz system to alert us on the entry. We will strictly follow the rules on M+ Wiz and trade accordingly. This week we have put in some healthcare-related (PPE and glove proxies) stocks such as COMFORT, HLT, NOTION, LUXCHEM. Meanwhile, other stocks include DESTINI and INARI.
M+ Wiz is a system to avoid trading based on emotions, assisting traders to perform better in the market. We reckon traders to put a stop limit and protect your capital just in case the market turns against us.
Stay tuned for M+ Wiz highlights every Monday at 12:30pm, we will turn on our FB live and share our thoughts on the market for that session. If you like our videos, remember to click “Like” and “Share” to your friends.
We would like to highlight that these examples above are not a suggestion for a BUY or a SELL recommendation and it is more for a case study reference material for the future.
M+ Wiz for the traders!