Interesting times ahead.

Quite sometime since I had the mood to post anything.

The last week showed STI breaking past the Mar-May highs, reaching almost 3040.

The question now is, have we completed wave 5? (which requires the move to have moved higher than 3031 the previous high). Are the big boys gonna let it retrace abit and push it up further since the other markets have yet to break March highs? Or have we completed wave 5 and just started wave A?

These are some questions to consider if you trade index stocks or stocks that mainly move with the index (note that micro pennies may not move with the index).

Trade safe!

Updates on STI components and Reits Yields

Sorry guys for no updates.
I was away for much of June. Church camp and a short holiday to Sydney to take a break from the hectic Singapore working life.

Anyways, the market was pretty much in a range and my opinion is that it currently looks like the start of "sucker rally 2". (The first being Jan to Mar). What do I mean by "sucker rally"? Well, lets just say I have the view that alot of retail investors are sidelined (as seen from the trading volumes) as they are uncertain of the road ahead. They may not have bought into the first rally earlier this year since the economy was looking pretty bad with all the negative news in 2nd half of 2011.

This 2nd rally is designed to lure in these sidelined investors so the financial institutions and funds can distribute their holdings. How do they do that? Well, they just keep pushing the prices up since volume is so thin and eventually retail investors might get itchy for fear of "missing the boat". This will continue to push prices higher until suddenly, everyone is vested and happy, with some capital gains unrealised. The big boys would have sold along the way up and at the top, buying will be only by retails and prices would only be able to slide down slowly but surely... Of course, news may speed up the dumping process and a market crash might occur.

Trade safe and be nimble!