A Happy Easter to all readers!
From the chart, we can see that there seem to be a diagonal? "double bottom" formation. STI seem to be consolidating? There is high above average volume at each of the bottoms and many days of strong buying volume on the days leading to the "breakout" from the channel as illustrated.
My take on the direction of STI? I think that STI is likely headed for more upside, with the general election around the corner. Perhaps the government would try to prop up the market to give people the feel good factor in the lead up to polling day? Last week, S&P gave a warning of US debt downgrade, which was like "old news"... I mean we all know (for a very long time) how bad US debt is...
For my own portfolio of stocks, I am looking foward to Sabana REIT annnouncing her results (and me finally getting some dividend from the REIT) this week. I am also looking foward to collecting some dividends from Golden Agri, SPH and STX OSV. =)
Moving on to other more exciting stuff. The general election is coming on may 7, with nomination day on apr 27. Although I am not eligible to vote, I am still very excited about the general election due to (not limited to) the following reasons:
1) All/ almost all of the constituences would likely be contested.
2) There are many good candidates from both sides of the political divide.
3) There are many hot-button issues on the ground, allowing for a robust political debate, policy suggestions like cost of living, issue of foreigners, housing etc.
All these factors, making this one of most hotly contested election in recent times.
And as one political commentator famously said: "I have never seen the ground is polarised as it is today" The political epic centre this time is likely to again be at the central and eastern part of singapore, namely at hougang, aljunied, potong pasir area, with much "spillover political fever" to the surrounding constituences, like tampines, east coast, punggol east etc.
This leads us to the next question...what will be the result of the general election. Will it be 85-2 again? or will a GRC fall to the opposition? what will the vote share of the PAP be this election... Well, I think it is still too early to tell, as there are still many unknowns as of now, like who the candidates will be be (they have not been fully announced yet) and the turnout at the political rallies etc... so till then, lets see tight and watch how it unfolds. =)