Dear readers, the global stocks markets have not corrected to the extent which we last saw in year 2009. Hence, there have been some in the investing community who think the stocks markets should be correcting in the near-term. But as stock markets only correct when people least expect, there is not really a set of convincing data to show that stocks markets are going to correct soon. I mean if people can predict when stock markets rise and fall, many would have become wealthy by now.
I would think the Singapore stocks markets should be correcting soon. Let me share with you what I have noted from technical analysis (TA) on the Straits Times Index as follows.
From 13 Nov 2020, the 20-days moving average of the STI has started to climb above the 100-days-moving average from below. Both the shorter and longer moving averages have since then trended higher and higher.
On 29 Apr 2021, the STI reached its intra-day high of 3,221.58 which is also the intra-year high. Ever since then, the 20-days moving average started declining!
On 13 Jul 2021, the 20-days moving average started to move below the 100-days moving average, thereafter it moved up again to just reach the 100-days moving average on 16 Aug 201 but the 20-days moving average failed to break above the 100-days moving average: the 20-days moving average moved below the 100-days moving average from 18 Aug 2021 and continued to do so.
The above to me was the sign that the corrections to the Singapore stocks markets has already started. And as our local bourse is a price taker, that means corrections to the global stocks markets has already started!
Get ready your investment warchest soon!
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