Saturday, 4 April 2020

What will Happen coming Monday to SGX stocks?

After the circuit breaker announced on Friday by Singapore government, what do you think will happen to Stock market on Monday?

Using STI ETF ES3:SGX,

In 2020,

FREE FALL
20-01-2020 : Peak YTD 3.337
23-03-2020 : Bottom at 2.241

REBOUND
27-03-2020 : Rebound to 2.533

DECLINE
03-04-2020 : Decline to 2.405


Source: Yahoo finance


MONDAY 6 APR 2020
Will it be black Monday in SG?

Or will Stocks Rally!

Maybe its time I learn how to short.
The easiest way is probably short using the Single Stock Daily Leverage Certificates (DLCs) listed in SGX.
https://dlc.socgen.com/










8 comments:

  1. Hi Rolf,

    Maybe you already know this. Just in case. DLCs are good for short-term intra-day trades. Suitable for one-night-stand traders. For traders who prefer longer-term relationships, hold their short position for longer period, SIMSCI futures will be better.

    Welcome back:)

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    Replies
    1. Hi Hyom, nice to see you. Already saw you active in CW and SMOL blogs. Thanks for the valuable info. I will look into SIMSCI futures.
      Just curious, if you think we should hold short for longer period?

      But DLC compound the next day using the previous day end. So what main difference with SIMSCI futures?

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    2. Hi Rolf,

      What is main difference of DLC with SIMSCI futures? Tracking error is lower for SIMSCI when the position is held for longer period over weeks. Take note about the leverage if you are new to futures.

      The key issue with these shorting instruments is tracking accuracy with underlying asset. From what I read and understand about DLCs, they track accurately for intra-day trades but not when you hold for longer period. I have no personal experience with DLCs. So, better verify what I say about DLCs.

      I have no opinion about whether to short for longer period or shorter period. I do not have a good track record with shorting anyway.

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    3. Thanks Hyom. Will check it out. Also saw Alvin's ex Big Fat Purse when I knew him post on CFD, DLC, Warrants on shorts. Very well-written.
      He is known as Dr Wealth nowadays...hahahha... I didnt realise that.

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  2. Not forgetting govt gg to come out stimulus,, Market may px this in..
    take care ,, keep a strict stop loss ..

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  3. I've been using DLC more than a year now. I had Shorts that suffered 50% to 80% losses in 2019 when the market was up. My Longs were raging on then and I was able to replace my income with the profits every month. Now the tide has changed and my Shorts come back from the grave and returned 500% to 600%. Of course, my Long positions suffer now. But who knows, they might still stage a return one day.
    As to what will happen on Monday, who knows. But with both Longs and Shorts, I am ready for the challenging times ahead.
    Anon.

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    Replies
    1. Agree that both longs and shorts are more versatile, and if use correctly can yield more and returns protecting upside and downside.

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