I have previously posted that Singapore Stocks are heading south just from the technical standpoint (i.e. technical analysis of the Straits Times Index ETF). Following my post, true enough, the Singapore Stocks went south technically and the southing was also driven by a host of new events that may some investors turn sellers. These new events are none the less, the US’ notice of more trade tariffs against China, the US-South Korea developments, the trade tensions between Japan and South Korea and also the Federal Reserves’ “once-off” interest rate cuts.
Looking back at the STI ETF performance on 2 Aug 2019, as if to confirm the downward trend of Singapore stocks, there was a very bearish candlestick as the STI ETF lost ground by 1%. The RSI of the STI ETF is now moving towards the RSI region of 30. If you could recall, a RSI of 30 and below means Oversold and hence it is quite likely that he STI ETF, which is a broader indication of the Singapore stocks may become oversold in the trading sessions to come.
I don’t see many positive catalysts which will move Singapore stocks up. There are just so many macro developments, some of which are not listed in this article, e.g. Brexit developments. Investors may be rewarded by not taking any action now, by sitting on the fence to assess the developments of the markets and Singapore stocks markets.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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