Thursday, 11 July 2013

Trader's diary 11/7/13

By Smoking Gun

Disclaimer: This is a mock portfolio and all trades referred in the the context of this mock portfolio are purely hypothetical based on actual prices observed during actual trading. This mock portfolio only serves merely to demonstrate the methods in my stock picking and trading strategy and does not represent a solicitation or recommendation to buy and sell any security or financial instrument. The content on this site is provided as general information only and should not be taken as investment advice. The ideas expressed are solely my opinions. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.


World equities rallied on 11/7/13 in the aftermath of Bernanke's comments. Dow and the S&P 500 registered new highs at the close of trading. At home, the Straits Times Index surged 1.9% earlier. Despite that, it was not really a good trading market today on the SGX as the surged was mainly concentrated on index linked stocks while most of the trading stocks remained subdued. We only introduced 200,000 shares of Kori to our trading portfolio yesterday at 4.50pm 11/7/13 at 0.41 within our rules of maximum of 10% per single stock exposure. As we are building up the portfolio, invested portion of the portfolio is only 18% whilst the uninvested cash is at 82%.


We based our decision to purchase Kori on the following criteria.
1. M over the past few days of 11.57, 156.63, 14.86 and followed today with a huge surge to 2,509.
2. Surge in M accompanied by strong price action up 7.9%
3. Decent volume in value terms of $6.4m
4. Big jump in MFI from 22.57 to 37.9

Our earlier buy Hiap Hoe had a good surge in the morning, touching a high of 0.78 before tapering off to close at 0.755. MFI showing an increasing trend which shows sustained interest while the M is still at elevated levels of 390.45 earlier today despite tapering off from the previous days 463.09. 

Markets today will get a boost from the strong showing of the US and European markets. Conditions elsewhere look supportive. Will be a good trading day today.