The JCI February 4, 2021

𝐅𝐞𝐛𝐫𝐮𝐚𝐫𝐲 𝟒, 𝟐𝟎𝟐𝟏

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟓,𝟗𝟕𝟓𝐩𝐭 – 𝟔,𝟏𝟕𝟓𝐩𝐭  (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟔,𝟎𝟕𝟖𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐜𝐥𝐨𝐬𝐞𝐝 𝐰𝐢𝐭𝐡 𝐥𝐢𝐭𝐭𝐥𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 , 𝐛𝐞𝐢𝐧𝐠 𝐬𝐮𝐩𝐩𝐨𝐫𝐭𝐞𝐝 𝐛𝐲 𝟒𝐐 𝐞𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐨𝐟 𝐩𝐚𝐧𝐝𝐞𝐦𝐢𝐜-𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐜𝐨𝐮𝐧𝐭𝐞𝐫𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒) 𝐨𝐟 𝐏𝐚𝐲𝐏𝐚𝐥, 𝐚𝐧𝐝 𝐞𝐁𝐚𝐲

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐢𝐬 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐭𝐨 𝐟𝐥𝐮𝐜𝐭𝐮𝐚𝐭𝐞 𝐚𝐧𝐝 𝐛𝐞 𝐬𝐮𝐩𝐩𝐨𝐫𝐭𝐞𝐝 𝐛𝐲 𝐬𝐭𝐚𝐛𝐥𝐞 𝐔𝐒𝐈𝐃𝐑 𝐚𝐧𝐝 𝐨𝐢𝐥-𝐜𝐥𝐨𝐬𝐞

Morning,

The Jakarta Composite Index (JCI) today (2/4) is expected to be in the range of 5,975pt – 6,175pt to attemp higher by support of bargain hunters. Meanwhile, yesterday (2/3)  the DJIA closed higher  by 36  points or by 0.1% to 30,724pt, while the S&P500 and the Nasdaq ended higher by 0.1% and lower by  0.02% , respectively.

𝐔𝐬𝐞𝐟𝐮𝐥 𝐫𝐞𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 𝐚𝐥𝐬𝐨 𝐟𝐨𝐫 𝐝𝐨𝐦𝐞𝐬𝐭𝐢𝐜 “𝐂𝐎𝐕𝐈𝐃-𝟏𝟗 𝐂𝐥𝐚𝐬𝐬” 𝐨𝐟 𝐑𝐞𝐭𝐚𝐢𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬

Below is useful copy-pasted references from the US-based stock investing coloumn , the Mad Money, for a reminder.

Here are Cramer’s seven guiding tenets for new investors:

1. Augment your capital with the stocks of companies that deserve to go higher over time (this means capital plus to do fundamental work to somehow determine the prospect)
2. Don’t try to wipe out other investors (slightly not relevant for Indonesia retail investors)
3. Find opportunities to capitalize on stock moves driven by emotional trading (this means to benefit from other traders’ excessive worries on a counter, and vice versa)
4. Don’t depend on the government to introduce regulatory changes (fact, current stock indicies’ move to certain extent are driven by government’s announcement)
5. Don’t borrow money from brokers to buy stocks (clear)
6. Keep a sound head and follow corporate earnings reports (clear)
7. Invest in companies that are in good shape and poised to do better in the future ( this needs fundamental work to somehow determine prospects).

To be able to benefit most of stock investments one must prepare a continous stream of capital ( might need a futher explanation for the term capital, though)  to ride the volatility. The continued stream of capital , to a large a extent, determine whether one can have a peaceful state of mind or otherwise, being invested in stocks.  That is the most-possible reason as to why, stock- investing is called a “capital-market” and not a “consultancy-market”, in our observe.

At the other end, yesterday  the WTI price closed higher by 1.7% to USD55.7/barrel as compared  to the previous close, after government data showed US crude stockpiles fell to their lowest since March, while OPEC+ maintained its supply cut agreement.  Meanwhile, the USDIDR  closed  at IDR14,044  vs. IDR14,044 the previous one.

We advise the following recommendations, for both trading and longer-time investment purpose. 𝐀𝐀𝐋𝐈, 𝐋𝐒𝐈𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘈𝘨𝘳𝘪, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘜𝘯𝘥𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐔𝐍𝐓𝐑, 𝐈𝐓𝐌𝐆, 𝐀𝐃𝐑𝐎, 𝐏𝐓𝐁𝐀 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘢𝘭 𝘔𝘪𝘯𝘪𝘯𝘨, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵), 𝐒𝐈𝐃𝐎, 𝐔𝐋𝐓𝐉, 𝐔𝐍𝐕𝐑, 𝐈𝐂𝐁𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘯𝘴𝘶𝘮𝘦𝘳, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐚𝐧𝐝 𝐀𝐂𝐄𝐒, 𝐒𝐂𝐌𝐀, 𝐌𝐀𝐏𝐈,𝐌𝐍𝐂𝐍 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘛𝘳𝘢𝘥𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵),𝐚𝐧𝐝 𝐓𝐊𝐈𝐌 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘉𝘢𝘴𝘪𝘤 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵).

Cheers,