TradeVSA Digest Week 7 Jan 31, 2019

Editor Commentary:

Shrewed politicians from both US-China certainly know there is NOTHING to gain from all-out tariff war between the two largest economic power. It’s a plot by US to “force” China into a corner, a winning trategy from Trump’s PlayBook “Apprentice”. Since then, China had printed trillion of CNY currency for market liquidity and lifted the Shanghai Bourse.

Earnings reporting week ahead, so far Apple and Facebook EPS’s were solid despite Apple and FB haters continued to weight negativity toward these two giant tech companies.

US FOMC chairman, J.Powell hinted no US interest rate hike for 2019 likely to boost US stock market at the expense of weaker US dollars.

Remember that Smart Money Operator distributes under the disguise of good news… Right Now… I am hearing so many good news….

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KLSE Market Update

Bursa Malaysia KLCI Index

On 2019-01-30, KLCI is trading at RM 1684.11 and change % from last bar was -0.37 %, (-6.30, RM 1690.41). And also within 3-Month low. This market condition is considered be bearish for index KLCI. However, KLCI is in GREEN HeatZone. This market is LIKELY moving from Stage 1: Accumulation to Stage 2. Mark-Up. Look for possible SOS like Line Change (LC) and No Supply (NS) for bullish uptrend. Wait for bar confirmation like Line Change (LC) for trend continues @ RM 1705.5 or higher.

SGX Market Update

Straits Times Index
On 2019-01-30, STI is trading at 3,174.38 and change % from last bar was -0.41 %, ( -13.31, 3,187.69). And STI’s also 3-Month high. This market condition is considered to be very bullish for stock counter STI. STI has weaknesses in the background in the last 30 bars. There are 5 SOW (Sign of Weaknesses). This market is LIKELY moving from Stage 1: Accumulation to Stage 2. Mark-Up. Look for possible SOS like Line Change (LC) and No Supply (NS) for uptrend. Wait for bar confirmation like Line Change (LC) for trend continues @ 3,220.68 or higher.

DJIA Market Update

Dow Jones Industrial Average (DJIA)
On 2019-01-30, DJI is trading at 25,014.9 and change % from last bar was 1.76 %, (+434.9, RM 24580). It is 1-Month high. This market condition is considered to be bullish for index DJI. Yesterday’s bar is 18 Line Change. Good Bullish move if next bar closes higher. Now, Line Change or No Supply SOS bars are in CONTROL now. Expect upside likely after 2019-01-30.

Stock Trade Idea

1. Mega First – To Test Resistance Soon after Flush Out >> See More

2. Who have the best setup? YZJ, Citic & AEM >> See More

Case Study

FrontKen – Shake Out or Pullback in Downtrend? >> See More

Facebook Live & Video Tutorial
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Market Outlook & How to Trade in Volatile Market

VSA Lesson

Stock Volume and Distribution

Education/Market Commentaries

Weekly Market Report – 26 January 2019

Be flexible and expect change
The business world and stock market are dynamic arenas by nature and are constantly in a state of change. Market corrections can happen at anytime and should be expected. Recessions happen. Household name companies go out of business. Pricing wars are waged. New technologies are born changing the way we live and do business.

Mr. Pong Teng Siew, Malaysia Strategy 2019 Stock Pick, Head of InterPac Securities.

1. Finance Recommendations Large Caps: Syarikat Takaful Malaysia Keluarga, Malayan Banking, CIMB Group Holdings, Public Bank, Hong Leong Bank
Mid Caps : Aeon Credit Services
Small Caps : RCE Capital

2. Property Recommendations:
Large Caps :
Mid-Caps :
Small Caps : Paramount Corporation, Matrix Concepts, Oriental Interest

3. Construction Recommendations
Large Caps:
Mid Caps:
Small Caps: Muhibbah Engineering, TRC Synergy

4. Plantation Recommendations
Large Caps : Boustead Plantations, United Plantations, IOI Corporation, Genting Plantations
Mid Caps : Kim Loong Resources
Small Caps :

5. Technology Recommendations
Large Caps : Inari Amertron, Vitrox
Mid Caps : Elsoft Research, GHL Systems, Mi Equipment
Small Caps : Revenue Group, Dufu Technology

6. Oil & Gas Recommendations
Large Caps : Dialog Group, Yinson Holdings, Serba Dinamik Holdings
Mid Caps :
Consumer : Frontken Corporation, Carimin Petroleum

7. Consumer Recommendations
Large Caps : QL Resources, PPB Group, Nestle Malaysia
Mid Caps : Apex Healthcare
Small Caps : Power Root, Teo Seng Capital, Guan Chong, Latitude Tree, Poh Huat Resources, Lii Hen Industries

8. Industrial Recommendations
Large Caps : Petronas Chemicals, Hap Seng Consolidated, Top Glove, Hartalega, Scientex, Uchi Technologies
Mid Caps : PIE Industrial, Sam Engineering & Equipment (M), ATA IMS
Small Caps : Perusahaan Sadur Timah Malaysia, Dominant Enterprise, Muda Holdings, Kelington Group

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VSA 101

– Everything You Must Know About VSA

Does VSA works in all markets?

VSA focuses on price and volume and seeks to find the actions of professional traders. Hence, as long as a market has a group of professionals and offers reliable price and volume data, the trading premise of VSA holds.

Almost all financial markets (stocks, futures, forex) seem to fit the bill.

However, in the spot forex market, volume is a tricky concept. You will not get actual traded volume. You get tick volume which measures the times the price ticks up or down. If you intend to use VSA methods for trading spot forex, you need to decide if your source of tick volume is a reliable proxy for actual volume. (Need help deciding? The ForexFactory forum has a discussion on trading forex with VSA.)