Dear readers, Singapore Straits Times Index (STI) retreated by 1.33% yesterday. To me, the showing of the STI yesterday was significant from the technical chart of the Straits Times Index.
From the technical chart, the 1% southing of the STI on 7 Jul 2020 marked the turn of the STI into a likely downtrend. We had two “hammer” stock candlestick formations on 14 Jul 2020 and 20 Jul 2020 respectively, but at each instance of these formation, the STI failed to make significant and meaningful rebounds. The “doji” formation on 21 Jul 2020 was where the Singapore stocks markets made a decision. And we knew from yesterday with the 1.3% southing of the STI, the markets signalled that the start of a stock markets correction is coming.
I am not at all surprised by the recent developments of the Singapore stocks markets. Remember just last week ago, I shared with readers in “SINGAPORE IN TECHNICAL RECESSION: WHY SINGAPORE STOCKS COULD CORRECT BY 35% TO 75% NEXT! ” on the next support of the STI at 2,500. The STI is now at 2,594.53 and another 4% southing of the Straits Times Index, the STI will reach my first level of support. Please note that when the stocks markets are to undergo a massive correction, the Straits Times Index in my opinion is likely to head to 2,000 level first.
As of now, the stocks markets are not to be invested in, a point which I have been reiterating many times in SG Stocks Investing. There are no bullish catalysts at all in the stocks markets. Upside gains to any stocks is limited. I really encourage investors to continue saving your hard-earned cash to tide over the uncertain economy ahead not just for Singapore, but for the world too. Then, use your cash as a war chest to invest in the stock markets when all investors have fled. Then you will become King.