Sunday, March 6, 2011
STI - Mar 4 and others
From the chart, STI seem to have returned back to the 200dma support. A reversal might have occurred?... with the STI rebounding off 2975.
Looking back to May to June last year, we can see that STI showed a similar pattern of rebound, which brings us to the next question: is this rebound for real? If this rebound is confirmed, how much upside can we expect? (I would not be answering this question...)
Looking at other technical indicators, we see that MacD has made a bullish golden cross and the smoothed RSI has rebounded from oversold conditions (below 30).
Nonetheless, one must still we wary of the unstable macro-economic conditions. With the Libyan unrest and spiraling oil prices, it may be prudent to avoid stocks such as SIA, Tiger Airways and other companies whose bottomline may be hurt by the increase in oil prices. It may also be wise to invest in companies that benefit from higher oil prices like kepcorp, sembmar, stx osv, ezra, ezion, golden agri, wilmar etc... Or perhaps take advantage of the mini-sale in the stock market to build up one's component of blue chips by buying strong companies like Singtel? (which I am seriously considering doing...)
Moving away from the stock market to other interesting talk on the ground... The electoral boundaries report came out last week and during last saturday, opposition parties announced they would be contesting the all seats in the general election, which means more Singaporeans would get to vote! =) great news if this development materializes, and with that I eagerly anticipate the coming general election (I guess in May?)
On a more personal note, I have been rather busy the past few weeks, and would likely continue to be busy in the coming weeks too. I am looking forward to the PC Show coming this Thursday (I wanna get a new laptop!, any recommendations?) I am also going to be applying for University again...(No Medicine, perhaps Law or Business/Accounting?) All these on top of my driving lessons (which I must admit I am a really slow learner) and my other commitments... Till then, lets sit tight and let the market unfolds itself...