|Stock index||Daily change|
|Hang Seng Index||-1.84%|
|Straits Times Index||-0.71%|
|CSI 300 Index||-1.01%|
2 days ago, I revealed about a penny stock pick 1205.HK (Citic Resources Ltd) which helped my HK portfolio turn a profit for the day despite HK indices rout as it shot up 16.07%. Today, the same thing happened again. 1205.HK surged 18.33% today and this helped my portfolio to turn in good profits despite the terrible drop in HK stock indices. HSI closed -1.84%, HSTech closed -3.14%, HSCEI closed -1.60% today.
I have sold off my entire position in 2800.HK HSI ETF at a loss yesterday (position was initiated on 7Sep2021). Fortunately, it was a small position and the position was trimmed earlier on 9Sep2021 after a quick and big reversal in HSI.
The terrible HK indices performance today is significant, given that it is the 3rd consecutive day of poor performance.
The HK broad market is in bad shape too. Given these developments, I will stop buying HK stocks for the time being even though HK portfolio is still doing fine. When the market is bearish, most stocks turn down. I'm not going to push my luck too far. Likelihood of catching another stock like 1205.HK and 257.HK is unlikely when the market is bearish.
Action for HK market (risk-off. Risk-off status started yesterday on 14Sep2021 but there was no update on blog):
- Get the stops ready and sell stocks in portfolio on weakness.
Singapore portfolio is flat today. STI closed at 3058.61 today. Crucial to watch how it behaves near the support 3055 in the coming days.
Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in portfolio on weakness.
China portfolio turned a profit today but this is mostly due to a rebound from losses yesterday. China indices were mostly negative today but were not as bad as HK indices. China stock market is sending a mixed signal. The broad market is strong as can be seen from the Shanghai composite index and Shenzhen composite index. The big cap indices CSI300 and A50 tell a different story. I will continue buying China stocks but will be more cautious at this point.
Action for China market (risk-on):
- Look actively for buying opportunities.
- Buy when good stocks appear on the watchlist and the price is within buy range.