TOM K: MY ANALYSIS OF THE SINGAPORE STOCKS NOW

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Dear readers, the STI carried out a good rebound of 1.14% north yesterday to reach a close of 3,516.23. To appreciate the rally, let us look at the STI ETF, an ETF which tracks the STI. When the Singapore stocks markets corrected recently, the STI ETF went to a low of $3.35 on 9 Feb 2018. Yesterday, the STI ETF, buoyed by the STI rally went to a high of $3.52. This means that if an investor has bought into the STI ETF at $3.35 for a cool 3,000 shares at a total investment of $10,050 and sells the ETF at $3.52 for a profit of $0.17 per ETF share (around 4.82% profit margin), the investor would have profited a cool $510 before transaction fees.
Looking at the technical chart of the STI ETF, the ETF bounced off its 100-Days-Moving-Average with the 5-Days-Moving-Average looking set to cross the 50-Days-Moving-Average from below.

The STI ETF is now at $3.52 and the resistance seems to be at $3.60. I don’t think it is an attractive level to invest in the STI ETF now unless one thinks that there is still a potential upside for the ETF to $3.80 plus level. But I believe it is not easy to predict an upside for stocks while the more attractive option will be to buy more good stocks at market corrections like the recent corrections. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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