The STI closed 1.00% higher on Thursday, climbing continuously since 1530hrs. From my previous post, I did not expect this to happen. The index has broken my (and also other analysts) previous estimates that the highest rally will peak at about 3000 points. That assumed peak happened on Tuesday.
One of the reasons for today's rally could be due to the buying for trades that were short. The market opened lower today. Fuelled with the need to settle the short position (which started on Tuesday), traders were inclined to buy when the opportunity presented itself.
Looking at the Dow today as I am writing this (just like Tuesday), I would consider tomorrow to be a good day with the Singapore market opening a little above today's closing. There could be a chance of the STI hitting a high of 3100 in the new few trading days. If anyone has bought anything in the last downturn or wishes to short the market. SELL signals should come in due time.
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