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Monday, 30 July 2018

Venture Corp, Technology Sector and Sector Rotations: 30 July 2018, Monday, 1.45pm Singapore Time

Venture Corp Chart 1
(Click on Technical Chart above to Expand to read the Full Illustrations)

Attached is the technicals of Venture Corp -- STI index component tech stock. The light-orange circled region is my live analysis on 15th July 2016 forewarning that technology stocks and the NASDAQ back then were about to rally massively, and that Venture would massively rally as well (refer to past track record here: http://donovan-ang.blogspot.com/2016/07/sgx-venture-klse-technology-index-and.html). Right after my preempting, Venture Corp rallied from my $8.82 buy point to hit $28.81, a returns of +327% in just 2 years.

The dark-orange circled region is my live analysis in January 2018 calling for most tech stocks such as Venture Corp to start peaking for sector rotation from technology stocks to energy stocks, crude oil stocks, commodity stocks, shipbuilding stocks and shipping stocks (the cyclical stocks). A few months after my live fore-warnings on the cycle, true enough with precision again, chips-makers and many tech stocks which had gone ahead of their fundamentals plunged -- with significant severity.

If you are still holding Venture Corp at $8.82, you would had gotten out with more than +100% profits. You are still able to get out with more than +100% profits since I prefer to rotate monies in accordance to my sector rotation rules. My stand is still the same: I will rotate out of Venture Corp and go into Keppel Corp, Sembcorp Marine, Cosco, Olam, Diamondback Energy, or any other quality related sector stocks.

Note that my underweight on tech stocks excludes those quality Tech companies with innovation and patent breakthrough, such as Creative Technology which I still deem high upside. There will always be outliers that outperform industry greatly because these companies go for research breakthrough. My underweight on tech stocks also does not mean I am bearish of them. Do note that the tech sector is still in bull market, just that in sector rotation, Commodity-Energy-RawMaterial stocks and Shipping-Shipbuilding stocks are expected to move up 3x units for every 1x unit up in tech stocks.

My stand is still the same in the macro-economics as we reach the mid-point of a long-journey bull market -- overweight depressed sector (commodities, energy and O&G-related, raw materials, shipping, shipbuilding) and underweight over-bloated sectors (e.g. technology). Dump defensive sectors and add pro risk-on sectors (against the herd) in the economic expansionary phase.

Attached below is the Venture Corp analysis made in 2016 for reference:
Venture Corp Analysis in July 2016 -- 2 years ago
(Click on Technical Chart above to Expand to read the Full Illustrations)

Cheers, and Best of Luck always.
Luck comes to those who do plenty of research work and hard work.

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