Yes! The market closed at 3248.04 today, up 11.94 points matching my earlier expectations. The STI has been tracking the US markets (DOW especially) and can be expected to continue tracking it.
The dominance of this coupling trends suggests that the worse is not yet over and there might be more bad news coming. That and also the fact that traders are very very careful now and watching and following one another's foot steps. According to a forum which I attended last week, "bankers need time to forget" said the presenter. I totally agree looking at what is happening now. Last year's problems need to be forgotten.
Looking on the bright side, business outlook is still good for the next 6 months as the market remains relatively optimistic and vibrant for now.
On trading and prices of stock. Counters here are showing signs of hitting resistance bands and trading sideways at a relatively high range. This can mean 2 things.
1) Prices are high. Counters are overweight. It is a sell time and not time to put your money in.
2) The hovering prices can mean the beginning of new cycles. This means that the current prices are good for a buy.
Looking at current trading patterns showing that prices are resonating, I would think that "1" is probably the case for now, considering that there is no real sign of a boom period coming very soon. Time will tell but I will still be weary of a breakout as it may not necessary be a positive sign.
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