Monday, June 22, 2015

Triple Witching strategies for Singapore stocks?

Wee Hur stock price headed south today by a good 6.5% today. On Friday 19th June 2015, I looked at the stock price of Wee Hur which has declined by 7.5% for the trading day to close the trading day at $0.31. I have checked that there were no corporate announcements from Wee Hur which could have attributed to this “southing” of the stock price. As I analyzed further the reason of Wee Hur stock movement for 19th June 2015, I saw that there was a sell-off of Wee Hur stock close to the close of trading hours of 19th Jun 2015. After some more analysis, I really thought that Wee Hur is one of the stocks of “Triple Witching”, same for other stocks.
With “Triple Witching” a likely reason for the above, I have full confidence that Wee Hur stock will stage a rebound today to close off at $0.33, the price resistance of Wee Hur stock for quite some time already. I even went to the extent of placing my “Buy” order for Wee Hur stock on the night of 19th June 2015 at the selling price of $0.31 as I have real confidence in my analysis.

Even if my analysis is not correct, Wee Hur is really a very attractive stock to own, with a close to 6% consistent dividends, Price-to-Book ratio of 0.952, a low Price-to-Earnings ratio of 2.6 and a Debt-to-Equity ratio of 0.593, for such a stock, what else can investors ask for?

However, I decided to withdraw my buy transaction as the Greece talks are really on the minds of investors and triple witching is not really part of my investing strategy. Looking at Wee Hur’s stock price today, which in have anticipated it to head north, I have no “investments regrets” as Wee Hur’s lowest intra-day price of $0.315 is not what I would buy (at $0.31). Most importantly, I am really proud to stick to my investing and trading method.

I have written a post on Baker Technology stock on 18 June 2015 which has prompted a reader to ask me whether investors should buy Baker Technology stock currently and whether I am vested in this stock already. Well, as what I have always shared, I really hope that I will not be perceived as giving out recommendations on stocks to buy (please read my blog’s disclaimer too). But if you think Wee Hur is fundamentally a good stock, I would like Baker Technology stock even more with its more positive cash flows and zero debt and now testing its 200DMA.
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