VIX Index Indicator (Fear Index)

VIX Index is one of the popular index that measure the global stock market's expectation of volatility implied by the S&P 500 and it is also known as "Fear Index". Investors should constantly check the VIX Index as it shows the fear of public investors on the global stock markets.

So, How do we know whether the public investors are panic and fear on the global stock markets? Let's backtesting the past few economic crisis results,

In 2008 (The worst economic disaster since Great Depression of 1929)

VIX Index in 2008

The economical crisis was started around the end of 2007 till 2009. The VIX index above showed how panic the public investors are and compared it with the stock market in 2008. The VIX index has almost reached 100% in such a short period.

S&P 500 in 2008

Usually, when the S&P 500 has fall below the important support lines then we would see a high pitch of VIX index. In other words, global investors are selling off their stocks and start to fear about the future. Or else, the movement of VIX index would be at around 20%.

In 2015 (Latest correction of global stock market)

As we mentioned earlier, if the stock markets went too high without any correction then be prepared for it as it will eventually comes. Please do not mistaken the difference between technical correction and economic crisis.

S&P 500 in 2015

Since after the economic crisis in 2008, the S&P 500 went uptrend for around 220% without any proper deep correction. In August of 2015, the S&P 500 index has finally make a correction for more than 15% in just a period of 6 months.

VIX Index in 2015

Before the stock market collapse, VIX index will always went higher than before because of majority of the investors are fear and uncomfortable with the current markets price. Basically, VIX index (Fear Index) will always be unstable when most of the investors are greed and the global stock index price went up until uncontrollable.

To be advised:
1) Always check the VIX index to see how fear is the global investors at this current stock markets.
2) VIX went higher than normal means that the stock markets are going to have a correction or collapse.

Hope everyone could understand the VIX index. Please drop any comments. Thanks.

The Coming Bear Market?

Recently, the performance of the stock market does not perform well. Does it means that the Bull Market is coming to the end? Bear Market is coming soon? The candlestick pattern indicator is showing a weird signals. Based on the backtesting results,

HSI: Market (2007)

A breakout signal on 29 Oct 2007 with four candlesticks and then a gap drop signal to begin with the bear market. In fact, it was the beginning of a Bear Market,

If compared back to the recent HSI (2017),

Exactly the same candlesticks signals have appeared again. A breakout signal then four candlesticks and a gap drop signal with a similar Volume of transactions.

KLSE (2017)

For Malaysia Bursa, the stock market started to perform poor in June onwards. Recently, there were also a continuously 8 days of dropping in the stock market. In addition, the recent highest point in Sep was even lower than before in June, in which the market proved that the economy might be collapsing. The most critical point is 1753, better hope that the stock won't drop below that level. If not, 1727 (-3.34%) will be the next resistance line.

According to these recent performance, it is quite dangerous. However, nobody will exactly know or inform everyone that the Bear Market has arrived (not until you have almost reach to the bottom). Personally, I think everyone should re-examine your portfolio and try to get rid of useless or underperformance stocks as the market does not really look so healthy.

Technical Analysis - The wave analysis showed that this is the final wave of the Bull Market (5th wave) before the bear market has come. For those safety investors or low risk investors, short term stocks should not be considered as the current market is quite difficult to play.

Be Prepared For The Bear Market to arrive! Have you think of any strategies to prepare for the coming bear market?

Learn IPO Stocks Strategy Right now (Basic for Beginners)

What is IPO? Basically, it means Initial Public Offering (IPO). When a private company is planning to go on public listed, they will issued ordinary shares though an IPO. Most of the time, it is because of the private company wanted to obtain more fund for financing their operation costs.

There are many ways to obtain IPO, however different countries may have their different rules. For instance,

1) KLSE; Investors should obtain it through some paper works through banks or private institutions.
2) HSI; Investors could apply it through e-trading, which means that everything could be done through internet.
3) NASDAQ; Investors have to go through registered stockbrokers, they would request you to wiring funds to the firm before issuing the stock certificates.

What are the benefits from IPO? Generally, there are 2 types of IPO investors.

1) They have already fully understand and review about the company profile and financial report, so they would take an advantages of obtaining at the lower price (like Facebook, Airbnb, etc)

2) They hope to get profits of the price difference from the initial price on the first days. However, the prices may be lower than expected. Hence, it is not easy to gamble through IPO as there may not have enough information for investors to review.

Personal Advice for short term investors,
1) I would not suggest beginner investors to play with IPO as the information you found may be insufficient to analyze.
2) Try sell the stocks within 3 days, no matter Win or Loss.
3) Set a profit of 10%-15%, which is more than enough for most IPO (If only you don't have solid information to back up)
4) If the IPO initial price (before public listed) is lower than IPO price (Frist day on the market), try to sell on the same day.

Hope you guys could share and like the post. Thanks. :)

Upcoming Malaysia Market Trend

Alibaba's (Jack Ma) is planning to invest a huge amount of money into Malaysia as everyone knows. Which means that Malaysia technology stocks would be taking a huge advantages as he would either acquired or work together with the local technology company in order to build up his e-commerce market.

As this so called "Investment" by Jack Ma has not been confirmed between the government and him. But some of the stocks have already overrated on the news and his visits to Malaysia. For instance, XINHWA, 5267 and GHLSYS, 0021.

XINHWA, 5267. Recently, they have build up an ecommerce website (e5buy.com) which have actually attracted china investors.

When the news released, the stocks shoot up straight. 

GHLSYS, 0021. They have already signed an agreement with Alibaba on Alipay in Malaysia. Which means, the future of this stock could be highly considered.

A high volume and a gap after the news released

 For TA, we could consider looking at the support line. Once it hit the support line without further dropping, we could target the price to about 1.78.

According to Public bank research, there are also 7 more technology companies that we all should be aware. For instance, (PUC, 0007), (MTOUCHE, 0092), (KGROUP, 0036), (XOX, 0165), (NETX, 0020), (M3TECH, 0017) and (MNC, 0103). Besides, other than Technology stocks, CIMB and Maybank have also signed an agreement with Alibaba on the Alipay mobile wallet. In which, it may lead to another higher breakout.

Investment Tips: Always remember to set a Stop-loss for every investment.

The future of this blog's direction

Hello Guys,

It's time to review my blog. From now onwards, i will be concentrated on the achieving financial freedom for everyone including myself. Stock investment is one of the ways of achieving it.

I am 26, Malaysian guy coming back from Hong Kong. For those who are interested in Stock Investment, i will be using my knowledge on Technical Analysis to assist everyone. Also, most of the part, i will be focusing on Malaysia shares and Hong Kong shares.