Sunday, February 20, 2011
STI - Feb 18 and the budget
STI has been rather bearish these few weeks. From the chart, it can be seen that it has fallen quite a bit from 3300 to now, which is around 3080. It can also be seen that STI has been resting nicely at support of 3080 (which is her first and most critical immediate support). After which would be next support of around 3040 (which is the more important one), as if STI falls below 3040 (where we find the 200dma support)... a level not seen since the middle of last year, STI would be really bearish.
I have little clue whether the supports would hold. But it would be prudent to cut one's investment if STI falls below her critical support. For me, I guess I will keep my long-term dividend yielding stock for now, and even if support is broken as there are afterall "long-term investments" after all.
Next week is also an important week for the Singapore stock market, as it would indicate how investors react to the budget announced on friday, which brings us to our next topic - our wonderful budget, filled with so many goodies. People call it a election budget, which is rather fitting because, under aged people (who have not yet attain "adulthood" and cannot vote), dont get the goodies. LOL.
Then again, congrats to those who got the goodies, namely (for those who are unaware - which I doubt there are any) the growth dividends, television license scrapping and refund of license fee (long overdue), income tax cut, medisave/medifund top-up (for those uncles and aunties), service and conservancy tax rebate (as always), utilities save (as always), edusave top-ups (for the school-going ones), workfare income supplements (for the lower-income), increase in CPF contribution from employers and so on.
Ok, what a nice laundry list of goodies for the households. Of course, there are goodies for businesses (albeit considerably lesser). But then, the government has announced policy to reduce foreign workers. (something that they should have done much earlier...)
All these lead me to believe that the general election is imminent, and sadly I am not of voting age...and would not get to vote. But I shall make an intelligent guess about the timing of our election, I say it will be held in May 2011, what say you?
P.S. this week also marked the first time I bought a lottery ticket, but alas the few dollars I spent didn't net me the 10 million TOTO grand prize. haha:)