The STI had been dipping and trending down this past week and many shorts being put out and the STI looked really weak as compared to the Dow Jones. Since 2008 after the financial crisis till today 2016, 8 years later, the Dow had reached an all time high while the STI barely even broke 3897.1 which was the high recorded in Jan 2007.
Knowing and studying all these charts, it just revealed that the Singapore market is just a weak market with growth being stagnant. However, there are 3 things you need to know in order to continue to survive in this ever changing market with an open mind.
1. The blue chips, mid caps and penny stocks are no longer in play for growth as it used to be in the past. Stocks like Keppel Corp, Citydev, Noble, Ezion, etc, were all long gone with the days where the super powerhouse dominate. These days, new stocks, new industry would dominate and take over the bigger caps.
2. Embrace growth stocks and new industry where I believe the next millennium, next generation of stocks would be. Stock like MM2 and Jumbo continued to show superb growth and rising price as compared to those in the past like Genting, Ezra, Noble, etc.. The world has changed and businesses move fast, so if you continue to hold on to traditional stocks and ideas, you shall be obsolete.
3. Finally, I am expecting a correction in both the Dow and STI soon. This correction maybe severe and would put a stall in the overall global market. The Dow had been rising but the rise contained many sellers and the up move wasn't that strong. The STI had been gaping down with many retailers liquidating and it only take another major sell down to happen before it's all gone.
I will be hosting and sharing more on my outlooks on Saturday. Kindly bring a pen and paper to copy down.
Ronald K - Market Psychologist - A Stock Market Opportunist