Random Trading
SHH - 2nd Wave in the making?
Random Trading
Publish date: Sun, 24 Aug 2014, 09:52 AM
Random Trading
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Too dumb to be an expert, too green to called a veteran and certainly not an insider. what's left..... RANDOM!
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
Chart : SHH daily chart as of Aug 22 2014 (source: ChartNexus)
SHH Resources is a holding company that through its subsidiaries engaged in manufacturing wooden furniture. The wooden furniture are mainly export to the US. Last few years has been difficult for the company due to the weak economy recovery of US. But things are improving over last few quarters as US economy recovery has start to gaining momentum. With higher payroll and lower employment rate, the US economy seems heading to the right direction. It is reflected on the performance of SHH as the company has been profitable for the last 4 consecutive quarters. With higher demand from US couple with stronger US dollar vs RM, the prospect of the company is quite optimistic. In addition, SHH is a net cash company with minimal borrowing thus it can rewards its shareholder with dividend if the company able to maintain its current operating performance.
The improved operating performance didn't go unnoticed. The share price of the company shoot up from around 60 sen to peak at RM 1.05 end of May this year . The spike in share price even drew an UMA from Bursa. After the spike, the share price has seen consolidating around 96 sen. Last Friday the counter shoot up again with significant volume and break its previous high of RM 1.05 to closed at RM 1.08 . This could be the signal for the start of the 2nd Wave. SHH is a thinly traded stock thus the share price can be moved with slightly huge volume. I think the counter is likely to have another good run.
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Discussions
1 person likes this. Showing 10 of 10 comments
Hi connie, personally I can't be sure whether PDT / stockist involve in this. But SHH is not exactly the kind of heavy volume penny stock likes PDZ, Sumatec, Glotech n etc. It is quite thinly traded most of the time so most likely not their cup of tea. Of coz, it is just my lay opinion. Judging from the volume last fri, i think there could be another run for this counter. As usual, do put ur stop stop loss juz in case. During this chaotic time, no one knows what is going to happen since the tide can turn as quickly as few seconds so better be cautious!
2014-08-24 10:55
RT SHH the day gap up so monday will continuoe up or will down, if up wat is the TP?
2014-08-24 11:45
uum uum uum ... share base 50m +- only
vol pdt dare not to short this counter in vol , else .. will kena 4896 :) .. buy long and then close position may be la
2014-08-24 13:51
hi RT ... as seen in the 1st wave from the chart, that was a pretty fast act of pumping up the price and then dumping !! we can't really count elliott waves for shh :):) hopefully the next upleg wave will not make a u-turn so fast !! u are so rite .. bursa is chaotic n topsy-turvy :) and traders love this don't we ???
2014-08-24 14:23
Hi Jenny, I can't be sure whether it will continue go up or down as well as put a TP on it because the only one can do that is the people behind the stock which I'm certainly not one of them. As a trader, I can only base on my trading plan to entry & exit. If the plan didn't work, I cut my losses and move on. If the plan works then I will take profit whenever I feels the time is right. Don't look for the perfect trade when you buy at the lowest point and sell at the highest point. This is simply won't happen. Just look for profitable trades, be it 5%, 10% or 20%, as long as profitable trade then that's good for me. For SHH basically the trading plan is based on the Wave anticipation theory thus I will sell if the share price fall below previous consolidation phase or look for sign of weakness such as wave with lower peak than previous. That's the only way I know. Hope it helps you.
2014-08-24 16:29
Hi Connie, Yup, as trader, we need market to be vibrant which provide more trading opportunity for us. Sometimes certain counters can be ridiculous, but it is our job to be discipline and stay away from counters that we are not comfortable with. For traders, discipline is always the most valuable character to have. Just trades with the plan and stay away if you are not comfortable then I think every trader should be fine even in the chaotic market. I always believe that we shouldn't blame other players in the market or the market itself for our losses, we are the one that accountable for our own trades. If anyone can't understand this then most likely they will get washed out from the market soon.
2014-08-24 16:36
Hi RT-I am a new kid in the block.my six sense tells me SHH will touch 120 in the next leg.What says u ?
2014-08-24 22:28
Hi Charles, like I said, is hard to know how far the counter can go. But judging on the current price level, if 2nd Wave come, then I do think that 1.20 is possible.
2014-08-25 07:30
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connie
good morning RT ... 4wk av vol was about 508K and last fri trading vol ballooned up to 7.3mil !!! is this a sign of PDT / stockist in the play ??? appreciate your tot if this is a sign of pump and dump !! thanks so much :)
2014-08-24 10:40