Is this the time to buy?

KLCI still in the downtrend if you ask me. So, is a NO. But for those VERY short term trader, or I say contra players or day trader is still business as usual. For me as a Value investor cum trend trader, is a hands off period and go for holiday. Hmm....maybe I can use this opportunities to sharper my skill as a shorter term trader, but definitely this will come with a price of RISK!.

Last few weeks, I bought SKPetro as quite a few of my "kakis" was mentioning here says her a Index stock and very cheap now. Well, I know that she is in downtrend mode and is not time to go for long term investing , I just go in have a counter trend trade. I went in at 3.16, but she broke my stop loss point of 3.14, thus , I sold her 3.13, in deed she drop further, lowest at 3.04, but after that she rebound back to 3.24. I have no regret, thats what a short term trade is , obey your stop loss. And for those who think is think for investing, she is now drop to 2.82. Wow ! imagine, if I do not obey my stop loss and maybe i hesitate to sell at 3.24, then I'm in a dilemma of trapping at a loss of 10%. Well, if one is to trade and not investing, then the cut loss should be less than 10% as a guide.

Last few days, I was expecting our CI can break the last High around 1858, then we will be on track back to the good old uptrends. See below the chart, our CI has been constraint by the 2 trendlines. Well, for a short term trade, say 2~10 days trade, a good entry point when she rebound around 1806 but the safer point would be 1771 or 1700?. Lets, hope our market would be at 1700, if yes, then the 5 years once big correction or people call it market collapse is formed.

As usual, just remember my disclaimer at the left hand side.

SUNREIT NOV2014 FOLLOW-UP

Is been nearly 2 months since I pen down something.
Is been a bad month for the mid to long term investor as they see their holdings back to their purchase price.

Example : My friend has been holding his Supermx (entry ~2.06) & Pantech (entry ~0.93) since 2013, and as Friday closing , he is at losing/breakeven position after holding for more than 1 year. Supermx close at 2.03 and Pantech at 0.93. Imagine if one is following strictly based on charts to sell Supermx at 2.65 (sell signal for mid term investor, will gain 28%) and sell Pantech at 1.00 (sell signal for mid term investor, will gain 7%).

I believe one really need to know when to sell. There is less than 10% of KLCI's  stocks which really gain consistently  throughout very long term holding. Nowadays every 5 or 10 years will be a big downtrend which will reset all your gains. So, I would really advised KLCI stock investor to learn how to let go of his beloved so call very strong FUNDAMENTAL stock and buy back later.

Sunreit is my long term portfolio, some portion I have been holding for >3 years which give me a good 15% annual compounding while the rest enter later did not do a good job in the annual compounding return. During the downtrend, I have to bear the pain on holding the loses nearly for 7 months. Luckily the downtrend only last 7 months. This time, I will do it differently, I will sell at least 75% (or maybe 100%) of my Sunreit holding when she break my weekly trailing stop at 1.47. Then will come back for her when she show signs of changing back to uptrend. Well , lets see this support 1.47 will hold or not.