In my frank opinion, any trace of bullishness sentiment which could be sustained is too early to be seen. At this current STI point of 3,180.43, although we could technically said that the STI has corrected by slightly more than 10% from its intra-year peak of around 3,600; I still find that this STI level is relatively high despite the correction. I find that there are more corrections which could come to bring the STI down to more humble level. In my most frankest assessment, the sellers have not come out in droves.
As what I have predicted, the STI has crossed down to below 3,200 what some say is a support. But I find the more important support, which is not just a technical support but a psychological support is the 3,000 level mark. Should the STI cross below this 3,000 level, I believe the downward movement of the STI could come faster with more momentum toward a more decent level of around 2,880. That will be in my belief a more decent and humble entry point to go into stocks.
For a simpler explanation why the Singapore stocks is not cheap, look at DBS stock now more than $25 per share and you would find that this is perhaps not cheap as compared to say $13 or $14 per share back in year 2016.
Since the Singapore stocks markets is not really that cheap and if you compare this year to say year 2016 and year 2017, there are more potential downsides than potential upsides for the global stocks markets. That could only mean one thing: we would not have steady buyers of stocks; many investors will be sitting on the fence and when there is a slightest trace of further corrections, I believe more sellers will emerge with stronger selling force. And these are reasons as to why the Singapore stocks markets are poised to trend even lower. 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.
