Market action 20Aug2021 (Fri)

SG -> risk-off. HK -> risk-off. CN -> risk-off

Stock index Daily change 21EMA* 50EMA* 200EMA*
HongKong Hang Seng Index -1.84% -5.29% -8.02% -9.67%
Singapore Straits Times Index 0.51% -1.36% -1.37% 2.13%
China CSI 300 Index -1.91% -3.40% -4.88% -4.44%
Australia ASX200 -0.05% -0.31% 0.97% 6.85%
Japan Nikkei 225 -0.98% -2.54% -3.80% -1.87%

*Percentage from exponential moving average of closing price

Another terrible day for Hong Kong market followed by yesterday's terrible day. Only today is more terrible than yesterday.
My HK portfolio has too few stocks to be correlated with the HK stock market now. The remaining HK stocks which are good for dividends do not fluctuate much. They are either REIT or property stocks. It is now harder to use my HK portfolio to get a feel for the HK stock market.

Action for HK market (risk-off):
- Stop looking actively for buying opportunites.

Terrible day for China stock indices. Not interested in Chinese individual stocks as a market timer when their indices are behaving in this manner. Similar to HK portfolio, China portfolio has too few stocks to be correlated with the country's stock market. The China stocks I have currently are more growth than dividends. If the remaining few China stocks show further weakness, I will sell these growth stocks.

Owning China stocks in a bear market is terrible for the soul. You will appreciate this statement when you go through what the Chinese call 千股跌停 (thousand stocks falling 10% dailiy limit). Imagine many stocks in your portfolio crashed and you want to cut your risk exposure. You want to get out but cannot get out because the stock has reached the 10% daily limit. The following day, many of the stocks fall another 10% daily limit and you cannot get out again. Simply torturous for the human soul, even for experienced players.

Action for China market (risk-off):
- Stop looking actively for buying opportunites.
- Get ready to sell remaining stocks if further weakness persists

Although Singapore market had an "impressive" day relative to the carnage in HK and China markets, STI closed near the low of the day. So did my SG portfolio.
SG portfolio still remains sizable enough to do damage if it declines further. So far, be more alert to movement in the SG portfolio, particularly on the down side.

Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in portfolio on weakness.
- Stop looking actively for buying opportunites


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