Last purchase of 9988

for this year when its price plunged more than 10% after it announced poor results on 18 Nov. This plunge comes a bit unexpected as I am expecting a pullback instead. After this purchase, I have accumulated 500 shares of 9988 at average price of HK$166. Moving forward, my plan would be to make use of selling call options to lower my average price.

For technical analysis of BABA and 9988, the inverse head-shoulder formation has became invalid after the plunge. Currently, both are very near a critical support level at about US$138 and HK$132 respectively.

Added 9988 @ HK$139.80.

China Evergrande Crisis has created

more fear in the stock market as shown by the Fear & Greed Index. So what do you plan to do?

No one could know when is the bottom for China tech sector. What I would do is to continue DCA on 9988 and 3067, and to practice ***diamond hand***.

CapitaLand has been replaced with CapitaLandInvest. Its share price has surged up from the consideration price of $2.823, closed at $3.30 on Friday. I have made some adjustment to my local portfolio spreadsheet, and CapitaLandInvest is currently the 2nd best performance!

Added AIMS @ $1.43.
Added SGX @ $10.08.
Reduced ST Engineering @ $3.86.
Added 9988 @ HK$147.

Are we in the Capitulation phase

for China tech bear market?

No doubt that China tech stocks are in bear market. Using KWEB ETF as reference, its price has dropped about 60% from its peak. The stock price of big China tech stocks such as Alibaba and Tencent, etc. have collapsed about 16% and 12% respectively for the past 1 week with high volume. The price movement looks similar to the Capitulation phase as describe below:

From https://www.investopedia.com/terms/c/capitulation.asp

Capitulation is when investors give up any previous gains in any security or market by selling their positions during periods of declines. Capitulation can happen at any time, but typically happens during high volume trading and extended declines for securities. A market correction or bear market often leads investors to capitulate or panic sell. The term is a derived from a military term which refers to surrender.

From https://www.dsij.in/DSIJArticleDetail/ArtMID/10163/ArticleID/12212/Market-cycles-and-emotions

Stage 3: Panic, capitulation & despondency

In the third stage, people start seeing the realities of a bear market and they may panic and to stop further losses, they in fact, move out of the market altogether. Those who still hold on to be in the market, become despondent and wonder if the markets would ever recover or whether they should stay in the market at all. The irony of the market is that, at these times, investor fails to recognise as currently, they are at the point of a maximum financial opportunity.

Even if we are currently in Capitulation phase, there is no way to tell how long it would last. However, as an investor, we would need to be able to hold through this rainy season.

Divested some Capitaland @ $4.01.
Bought SembCorp @ $1.94.
Added SGX @ $10.67.
Added ST Engineering @ $3.95.
Added 9988 @ HK$167.

Added Palantir @ US$24 (via options).

Reached 50% of my targeted dividend

for this year. I have 5 more months to get the remaining $4k dividend. I am quite confident since dividend are expected to improve for most of the companies. Eg. MAS has lifted dividend cap on Singapore banks :)

I have started to invest into 9988 - Alibaba listed in HK market, and have the intention to convert BABA to 9988 progressively.

Divested all Sembcorp @ $2.05.
Added AIMS @ $1.55.
Added CapitaLand China Tr @ $1.35.

Bought 9988 @ HK$186.20.