Darkness before drawn

20 March 2014

Last night Federal chair woman Yellen Announced that Fed. will continue Q E tapering And interest rate could increase 6 mouths after QE end i.e. April 2015. If it will be earlier than market would expected. Today HSI drop almost 400 points.

Next week China banks will report. they have good 3Qs result. If no other surprise, their Annual reports shall be good too. Hopefully, market sentiment may be Improved.

Market in very dark moment. Brave ourselves invest stock with good fundamental and wait for reports to be announced next week. It could be drawn.

Olam warrant and investment strategary

In my previous post on 24 Feb

Stock Market may recover during report season

, which mentioned that I keep some Olam warrant even it was doing well with unknown reason. And news finally announced yesterday.It went up to my predicted warrent price of S$0.6. But it is 3 years earlier than my expectation.

My strategy is to secure my capital. I started to sell Olam stock and warrant when it was over bought. But I stopped selling when I found it was unusually outperform.  Next week I will sold the rest  and close this sweet chapter.

 On 9 Feb, I predicted a difficult 2014. On 24 Feb, I suggest that there could be a small window of opportunity after Mid March reporting season. Hopefully market will recover between April to Mid May 2014.

I am buying in China Banks e.g. BOC, ICBC. Recent market drop offer me good buy in opportunity.

BTW, buying in falling market require courage. Your stocks' market value may fall everyday. Many people may tell you to stop until market is stable. But you have to be brave and continue to buy. I bought Olam warrant when no one was buying. I was the only one in the buying queue. I could ask whatever price and sellers will dump it to you.

I hope that my China Banks investment could repeat my success.