In my previous SG Stock Market Summary in April, the STI closed above its high of 3,500 points. Although the market was experiencing its highs back in April, i cautioned that perhaps it is time that a crash/correction may happen.
Fast forward to the end of July, the Straits Times Index closed just above the 3,200 resistance on the 31-JUL. I will not be surprised if it breaks this psychological resistance and goes further on a downward trend.
Personally, i feel that the catalyst of the fall is a culmination of a weak Chinese market, the instability of the Euro from the Greek crisis and the potential interest rates revision by the fed. Closer to our hearts, the Singapore market is experiencing stagnation and contraction. In the most recent report released in Q2 suggests that the Singapore’s economy fell at a seasonally adjusted annualized rate (SAAR) of 4.6%.
Is this a sign of tougher times to come ?.
From a consumer point of view, i have also personally noticed several F&B outlets and businesses closing in the malls that i frequent. As a reflection of this difficult business environments, our stock market has also had some corrections and several of the STI components have started to show signs of price weakness. If you have been patiently waiting, as i have been, it will soon be our time to pick up the bargains.
Fast forward to the end of July, the Straits Times Index closed just above the 3,200 resistance on the 31-JUL. I will not be surprised if it breaks this psychological resistance and goes further on a downward trend.
Personally, i feel that the catalyst of the fall is a culmination of a weak Chinese market, the instability of the Euro from the Greek crisis and the potential interest rates revision by the fed. Closer to our hearts, the Singapore market is experiencing stagnation and contraction. In the most recent report released in Q2 suggests that the Singapore’s economy fell at a seasonally adjusted annualized rate (SAAR) of 4.6%.
Is this a sign of tougher times to come ?.
From a consumer point of view, i have also personally noticed several F&B outlets and businesses closing in the malls that i frequent. As a reflection of this difficult business environments, our stock market has also had some corrections and several of the STI components have started to show signs of price weakness. If you have been patiently waiting, as i have been, it will soon be our time to pick up the bargains.
Let me know your thoughts...
Yours,
Dream Chaser
The Singapore traders must know that the Stock Signals suggested to Buy EZION HOLDINGS [5ME] ABOVE 0.700 TARGET 0.720 0.750 SL 0.660, today.
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