SINGAPORE STOCKS INVESTING

Dear readers, Singapore Stocks as tracked by the Straits Times Index (“STI”) have been trending higher in recent sessions. So much so that right now, based on technical chart, many of the STI constituent stocks are Overbought. And the STI ETF, which tracks the STI in turn is now heading into the Overbought region.

Dear readers, on 31 May 19 and 3 Jun 19, the Straits Times Index ("STI") ETF touched the 200-Days-Moving-Average, attempting to cross below this average.

Dear readers, the Singapore Stocks as measured by the STI is now oversold. The STI ETF which tracks the STI is in turn oversold. The STI ETF which is now trading at $3.228 is already more than 6% lower than the recent high of $3.432.

Dear readers, it is time for me to give my humble take on the Singapore stocks markets now. Looking at the technical chart of the STI ETF (an ETF which tracks the STI), the STI is still currently Overbought (with RSI above 70). Next, looking at the stocks candlesticks chart, I noted that a resistance formation seems to be forming at the STI ETF price of $3.36 and the height of the stocks candlesticks is also not encouraging either.

Dear readers, in this post, let us analyze the current Singapore Stocks markets via a technical analysis. As always, we will analyze the performance of the local bourse through an analysis of the stocks market benchmark indicator: the STI. To be more specific, I am looking at the technical analysis of the STI ETF.

Dear readers, welcome in joining me to analyze the Singapore stocks right now. Looking at the technical chart of the STI ETF, I must say that the STI ETF had recently rebounded off a support found at $3.16 and thereafter right now, the STI is consolidating at around $3.23 level.

Dear readers, it has been some time since I took a look at the technical charts of the STI ETF so as to forecast the direction of the Singapore stocks moving forward. On looking at the STI ETF technical charts, I have an important technical indicator to share with All of You.

Dear readers, the STI closed at 3,059.23 on 31 Dec 2018 and on the last trading day of Jan 2019 (31 Jan 2019) closed at 3,190.17; which represented a decent gain of 130.94 points or about 4.28% for the gain in STI for the year-to-date 2019.

Dear readers, Paul Chew of PhillipCapital said in PhillipCapital's first video for Year 2019 that the STI would reach 3,400 in Year 2019.

Dear readers, yesterday, the Singapore’s Straits Times Index STI made some gains, climbing 1.39% to close the trading day at 3,060.85. The STI ETF which tracks the STI moves up 1.47%. A recent debutant on the SGX, Phillip Sing Income ETF closed 0.6% up comparatively.

Dear readers, the STI closed at 2,972 yesterday which is below the 3,000 psychological level of the Singapore Stocks Markets. I am not surprised at the development of the Singapore Stocks markets as could be seen from my sharing on my views of the Singapore Stocks Markets over several times earlier this year including:

Dear readers, the Singapore stocks markets have been heading south in line with regional peers. The STI closed at 3,181.45 yesterday and if the STI trends down further, I believe the support at 3,100 could still be tested.

Dear readers, the STI Index went 1.69% south yesterday to close the trading day at 3,156.28. Correspondingly, the STI ETF which tracks the STI closed 1.7% to $3.194. This was one of the very few times again this year which I noted the STI crosses below the 3,200 mark. More noteworthy is the fact that the very bearish stock market candle yesterday in the STI ETF chart which broke the $3.20 mark did suggest to me that if a more sustained downtrend is on the horizon.

Since my last update on my opinions of the Singapore stocks markets (you can read the post here ) , the Singapore stocks benchmark STI did not fail to disappoint Singapore investors with its continued lacklustre performance. As of 17 Aug 2018, the STI closed at 3,209.44 which is not far off from the 3,191.82 reached on 2 Jul 18. I would continue to think that the STI would continue this downward movement to below 3,000 and thereafter to 2,880 on the back of macro developments. In fact, there is even more impetus to push global stocks markets including Singapore into more bear territory with the Turkish currency factor.

Dear readers, the US stocks closed last Friday with a very lacklustre showing: Dow: -0.77%; Nasdaq: -0.67% and S&P: -0.71%. Hours before, on the same day, the Singapore Stocks markets also performed in a similar fashion with the STI ending the trading day at 1.26% lower. Thus, it is expected that Singapore stocks will not open bullishly later.

Dear readers, yesterday the Singapore Stocks Market STI inched up by around 0.60% in line with the other Asian stocks as the China’s central bank took steps to drag the Yuan away from the 14-months lows. Aside to the aforementioned, one must also note that now is the current reporting seasons by listed companies, a number of which are in the STI constituent stocks. Hence the bullishness of the STI is in part boosted by the performance of those stocks where investors help to push the share prices up due to good earnings performance.

Dear readers, for the previous week, the STI closed at 3,265.73 as of 3 Aug 2018. Though the closing was slightly higher than the closing of 3,324.98 registered on 27 Jul 18 (i.e. the week before the previous week), I would still retain my reading (as per my previous post on the STI here ) that the Singapore stocks markets remain in a position of non-bullishness. The STI, a barometer of the Singapore stocks may be making little gains here and there but the overall narrative remains bearish.

Dear readers, yesterday (27 Jul 18) the Singapore Stocks STI closed at 3,324.98. As at 20 Jul 18, the STI was 3,297.83, hence the STI has in effect went lower by 0.83%. But the decline in the STI (a barometer for Singapore stocks in general) was not always a straight decline since the STI actually went up by more than 1% on 25 Jul 18 at the mention of US-EU trade tensions.

Dear readers, Singapore stocks were down by around 0.80% today and with today’s showing of Singapore stocks, our local bourse actually gave back the gains the markets have chalked up in the recent trading sessions. The reason is simple: US has announced that it would impose more tariffs on China’s exports. I have shared in recent posts that the macro factors are not positive for the global stocks markets currently. In a Facebook survey conducted by Singapore Stocks Investing on 9 Jul 2018 (which would close in 5 days: to participate in this survey, please visit this 9 July 2018 post on Singapore Stocks Investing Facebook page), more than 56% of the poll respondents already supported the view that the STI would head south to 3,000. This has all along been my position for the STI thus far. Any dollar cost averaging to be done should be done at where the STI becomes attractive once again and a below 3,000 mark could be the start for some investors to dollar-cost-average-buy the Sing...

Dear readers, yesterday, Singapore stocks markets erased the declines it has been chalking thus far with the Singapore stocks markets benchmark STI up by a decent 1.16%. Some investors are thinking that now is the time to bargain-hunt for some good stocks since stocks markets have corrected recently and yesterday’s showing of the Singapore stocks markets seemed to indicate that Singapore stocks markets have bottomed out and are poised for a rebound. Not yet, says Tom K (myself).