I printed a weblog a number of days in the past on Lion-OCBC Securities Dangle Seng Tech ETF and the way I used to be utilizing it to achieve publicity to Alibaba, Tencent and another Chinese language tech corporations.
I stated that I used to be taking it gradual with the ETF and that my preliminary funding wasn’t even 0.5% of my portfolio in market worth.
Why take it gradual?
Though there have been some indicators that the mud may very well be settling, technically, the downtrend was clearly nonetheless intact and low may go decrease.
Shopping for the dips in an uptrend can be shopping for as Mr. Market climbs a wall of worries however in a downtrend, Mr. Market flows down a river of hope.
Getting our hopes up in a downtrend may set us up for disappointment.
Additionally, more often than not once I went wandering out of my circle of competence up to now, I ended up hurting myself and fairly badly generally too.
Though I researched the ETF and among the Chinese language tech corporations it was monitoring earlier than I made the choice to place some cash on the desk, I used to be very certain I solely scratched the floor.
Anyway, in step with my plan to restrict publicity to 1% of my portfolio for a begin, I nibbled on the ETF earlier at present at a worth 10% decrease than my preliminary funding.
With this buy, my complete publicity to the ETF stands at round 0.5% of my portfolio now.
What do I plan to do subsequent?
I can be ready to see if the low of 15 March can be examined within the coming weeks.
If the low must be examined, I’d almost certainly double my funding to extend complete publicity to round 1% however I’d add extra if I ought to see a optimistic divergence.
I’d take a look at the momentum oscillators just like the MACD and RSI to do that.
Constructive divergence means increased lows within the momentum oscillators as worth retests the low or kinds a decrease low.
A optimistic divergence would give me the sign so as to add extra to my funding.
It might recommend that the promoting stress may very well be easing and that the worth may see a extra sustained restoration.
Nonetheless, I’d take it gradual as a result of we may additionally see decrease lows in worth and better lows within the momentum oscillators for a lot of months to return.
Within the absence of a optimistic divergence, I’d err on the facet of warning and never add an excessive amount of to my funding.
Been some time since I did some technical evaluation.
Hope I’m not too rusty. ;p
Associated put up:
Investing in Alibaba and Tencent now.
“China’s central financial institution chief pledged on Friday (Apr 22) to maintain coverage accommodative to assist the slowing economic system…”
