What do you do when you are uncertain ?
Updated
That is what the media is now saying - that the market is anxious because of a second relapse of the Covid-19 virus. Look at the latest happening in China where 137 new cases were discovered and schools had to be closed down again.
What else are there to worry about ?
Well, the number of cases in US is still not tapering, that's a prime concern especially with states reopening their economy. And we have the unemployment benefits that will end in July. Looks like the US government has to cough up some new stimulus to allay the fear amongst this group else we see a new protest on the streets.
Latest kids on the blocks ? The military battle between China and India where double digit casualties were discovered.
Naturally, short sellers want to focus on these news in addition to their views on how overvalued the US indices are, how tech industries are driving the economy and is long due for a bear market.
If we turn to charts, this is what we know :
Short term - it is now above the 20 and 50 EMA which is a bullish signals
It is still in a range with its recent attempt to hit 28000 but failed. If the bullish trend line stays intact, then it might retest this level again.
I am looking at the gap (pink) where it is expected to close in due time.
The last closing candle is a hammer pattern, which is also bullish sign.
What else do we know ?
New influx of funds from Hong Kong
Singapore phase 2 reopening will boost local economy spending
So, short term, we can still expect volatility especially from market moves from US which impact Singapore market greatly. Mid to long term, I am bullish on SG market especially the Government calibrated move to contain the Covid-19 cases. Not forgetting, it is also calling for Election which is likely to boost the stock market as well.
What else are there to worry about ?
Well, the number of cases in US is still not tapering, that's a prime concern especially with states reopening their economy. And we have the unemployment benefits that will end in July. Looks like the US government has to cough up some new stimulus to allay the fear amongst this group else we see a new protest on the streets.
Latest kids on the blocks ? The military battle between China and India where double digit casualties were discovered.
Naturally, short sellers want to focus on these news in addition to their views on how overvalued the US indices are, how tech industries are driving the economy and is long due for a bear market.
If we turn to charts, this is what we know :
Short term - it is now above the 20 and 50 EMA which is a bullish signals
It is still in a range with its recent attempt to hit 28000 but failed. If the bullish trend line stays intact, then it might retest this level again.
I am looking at the gap (pink) where it is expected to close in due time.
The last closing candle is a hammer pattern, which is also bullish sign.
What else do we know ?
New influx of funds from Hong Kong
Singapore phase 2 reopening will boost local economy spending
So, short term, we can still expect volatility especially from market moves from US which impact Singapore market greatly. Mid to long term, I am bullish on SG market especially the Government calibrated move to contain the Covid-19 cases. Not forgetting, it is also calling for Election which is likely to boost the stock market as well.
Note
Expect STI to be hit as well if US markets come under storm attack !Note
notice the fake breakdown on 25 June 20? A week later, it is back to the bullish trend line.Note
Selling pressure seems to ease for now, we might see a bullish reversal today or tomorrowNote
Sorry to disappoint. STI is not performing well..........Put this aside for the time being and focus on US, China for now.There are more than enough opportunities there !Note
channelnewsasia.com/news/singapore/covid-19-heng-swee-keat-support-measures-ministerial-statement-13027134Those who believe in the STI story may want to buy this index , ETF or some blue chip stocks as it is relatively cheap now. You would need a longer time frame to see the returns though.
Note
channelnewsasia.com/news/singapore/covid-19-more-employees-allowed-to-return-workplace-conditions-13138182This return to normalcy will help some small local companies in their revenues.....
Note
again, i have been asked my opinion on STI. I am not quite optimistic about its potential from an index perspective though there are a handful of individual stocks that I have covered.Note
Good run thus far , expecting a healthy correction at 2715 to 2765......
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