As of now, I am still bearish on Market.
2 main issues at hand here:
1. OPEC/BRIC not cutting production of oil, and allowing oil prices to go down. (Saudi trying to kill the rest of the market or rather, take back its market share, especially Shale oil.)
2. Slowdown in China - We know now that China is cutting some production of Steel, which may be a sign of more production cuts to come. (http://www.bloomberg.com/news/articles/2015-12-13/steel-output-in-china-drops-again-as-more-cuts-seen-on-the-way)
As long as the above mentioned are true, I remain bearish. However, I may go long once one of them is false.
I see Keppel dropping to $4.75 today. I will cover my short at a loss (Was holding to this baby for some time already)
China might recover on Wednesday since the consensus is at 50.5 compared to previous of 50.2. (Caixin China Services PMI)
Monday, February 1, 2016
Tuesday, January 26, 2016
Wrong wrong again
I am now totally bearish on the market. Keppel, Barclays has been cutting jobs but still, I do not see blood on the streets. (Sources below)
I am getting married in the middle of this year, and thus will not have much ammo to deploy to average down all my shares, but I will start to do it, probably after Chinese New Year.
I think there is still shorting opportunities in O & G counters, and as such Keppel remains my first choice to short.
I can understand that selling stake in M1, but I don't really understand why Temasek is asking Keppel to consider selling rights even though they are doing ok now, but if thats the case, it represents dilution to existing shareholders and so Keppel will fall, which represents a shorting opportunity.
Note: I am vested in Keppel at an average price of $9.19.
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