Announcements
Sorry for not posting in the past 2 weeks. The market has been uninteresting.
Insights and Opinion
In my last post, I mentioned a reversal in both the STI and HSI. It happened but it only lasted for 2 days. The markets have since been down.
STI
The STI has fell in line with the rest of the markets in the first week of August. Fed and Euro rates being held, helped the market to sustain its low levels and not go lower. The past 2 trading sessions have seen strong gains in the DOW but none here. The Prime Minister warns of trying times and a lower GDP estimate. GDP grown rates in Singapore have slightly contracted in Q2 and have aggravated the bleak situation. This has been a case of fundamentals overwhelming technicals. Technically, the short term outlook is good with an expected climb to a the band of 3000 +/- 50. If the DOW and Nikkei post strong gains in the next few trading sessions, it may overwhelm the negative sentiments here and bring the market up a little before more worries set in. That can be an opportunity to exist open positions.
HSI
The recent storm has caused the Hang Seng to close for a day and has not helped the situation as the HSI seems to be tracking the STI in the last 2 trading sessions. I would expect the HSI be a a reactive market in the next few trading sessions.
Nikkei and DOW
The Nikkei has been tracking Wall Street. This makes it relatively easier to chart than the STI and HSI. However, the strong gains of both markets in the last few trading sessions shall reverse on profit-taking as the markets climb towards their short term resistance range.
More substantial views with new charts shall be posted in the coming days. Watch this space ;)
