Dear readers, the Singapore Straits Times Index (STI) reached 2,977.17 yesterday. This is an important juncture as it is just few notches below the psychological 3,000 support. Many Singapore stocks have been trending higher. These were stocks that were far ignored before, only to be recently noticed for their gains and these stocks then rallied in price.
I would think the resistance to Singapore stocks would remain at 3,000 and it is not easy to break above this resistance. Yes, there is every possibility that the STI will reach above 3,000 but I doubt that this above 3,000 level will be sustained looking at the macro backdrop of the still ongoing Covid-19 pandemic and bearish global economy generally.
When everyone seems very interested to buy stocks with stock price rallying, it will be prudent to stay on one side and determine whether we are investing in stocks with a rational reason or whether we are speculating like some others.
I am not interested in Singapore stocks now given that the STI is on the high side. Instead, there are many decent US stocks with multi-growth potential that I am looking at for investing or trading. Remember the first US stock investment I shared with you readers? I have since traded it off for some decent gains and am continuing to look at it for trading and long-term investing potential. US stocks offer the volatility band for trading but the onus is to choose the correct stocks with good fundamentals just like for Singapore stocks.
Don’t invest too much for this year (if you want to invest in new positions) as 2021 will still be a volatile year for investments. Set up an investment war chest to get ready for any major stock markets corrections.