Dear readers, the Straits Times Index (STI) finally crossed below the 2,500 mark yesterday! The STI closed at 2,484.91 in yesterday’s session and I must tell you I am not surprised that STI has crossed below 2,500!
The reason is simple. I have been sharing many times in my blog recently that 2,500 mark for the STI is a near-term support (you could read one of my latest posts on this here ). And I have gone as far to remind investors that in the next stocks markets meltdown, the STI could in my view reach 2,000 (or a southing of about 20% from where we are right now). I have also provided views with some supporting points that 1,700 for the STI is possible. I had also shared here that the STI may even reach revisit the 1985 low of 600. Yes, 600! Sounds incredibly low and not possible to Singapore stocks investors at this point but I could tell you that this is all the possible in the event of a perfect financial storm.
Now what with STI reaching below 2,500? Well, investors have to take note of the STI level these few days. Will 2,500 be a support or will the STI start to head south more suddenly from here?
A southing of the STI at a faster pace is possible mathematically and emotionally. Mathematically, because every point fall from a smaller STI closing base means a larger percentage drop. Emotionally, because the larger the percentage drop of the STI, the more emotionally investors may become and this may lead to more selling of the STI.
Yes, I continue to hold the view that the next target for STI is 2,000 level mark. But first, the STI must touch the 2,300 support first.
This is going to be an exciting time ahead for investors as the oft-cited stocks markets in more-than-a-decade may be in the making. But you will be sure that along the way, I Tom K will be with you to make sense of the Singapore and US 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! I also run another blog Singapore Stocks Investing with similar useful insights! 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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