OCBC Correction Almost Over? I Am Ready to Ride the Next 5X Move 🚀

$OCBC 5xLongSG280223(9RWW.SG)

I am still holding my OCBC 5X Long DLC (9RWW) $OCBC 5xLongSG280223(9RWW.SG) , and after the recent correction in Singapore banks, I am starting to see this as an interesting setup rather than a reason to panic. My view is that the banking sector correction should be approaching its short-term end, although I know there can still be volatility before the next move higher. Because 9RWW is a 5X leveraged product, I am not treating this like a normal $OCBC Bank(O39.SG)  share position. The leverage can amplify both the upside and the downside, so timing and position sizing are especially important.

What gives me confidence is that the underlying OCBC business remains fundamentally strong. OCBC reported a record S$4.19 billion net profit for 1H26, up 13% year-on-year, while 2Q26 net profit reached S$2.22 billion, up 22% year-on-year. Total income increased 11% to S$8.0 billion, and non-interest income jumped 36% to a record S$3.51 billion. This is important because lower interest rates have put pressure on net interest margins, but OCBC has been able to offset some of that pressure through wealth management, fees, trading and insurance income.

The balance sheet also gives me some comfort. Customer loans grew 11% year-on-year to S$364 billion, while customer deposits increased 13% to S$459 billion. Asset quality remained healthy, with the NPL ratio stable at 0.9%, and NPA coverage at 163%. OCBC also maintained a strong CET1 ratio of 15.7% as of June 2026. These numbers do not mean the stock cannot fall, but they show that the current story is not simply about chasing a weak company after a correction.

For me, the key question now is whether the recent bank weakness is a temporary correction or the beginning of a much bigger deterioration in earnings. At this stage, I lean toward the first scenario, but I will continue watching interest rates, NIM, credit quality and loan growth closely. If the banking sector stabilises and OCBC starts another uptrend, the 5X leverage could make 9RWW move very quickly. That is exactly why I am prepared to ride the next uptrend, but I also know that leverage works both ways.

My strategy here is therefore different from my long-term holdings such as Tesla, semiconductors or ServiceNow. I am not planning to blindly hold 9RWW regardless of market conditions. I want to participate if OCBC confirms a new upward trend, while respecting the downside risk if the correction continues. I would rather wait for confirmation and let the market come to me than chase every green candle.

For now, I am staying patient. The underlying OCBC fundamentals remain solid, the recent correction has already taken some heat out of the trade, and I believe the risk-reward could become more interesting if the bank sector starts to stabilise. If the next uptrend arrives, I am ready to ride it with my 9RWW position — but with 5X leverage, discipline has to come before excitement.

Market moves, I stay composed. 📈