Thursday, September 26, 2019

Singapore Market Update - Is the Trade War News Going to Be Good?

Study the Top 30 Volume and you will see stocks are pretty lacklustre even though the Dow Jones moved up +162 points last evening. The market was selling down last evening and suddenly, there was this resurrection action where from -60 points, it recovered back to +162 points which indicated some strength. as for the news on why it recovered? It was because Trump said the trade war between US and China deal will be sooner than anyone thought. The problem now is this is all speculation news without facts and the market players were just buying on rumors and I had seen before the actual news turned sour and everything fumbled big time.

Take a look at the Singapore market now, if the news is really good on the trade war, why did the STI not moving positive +20 while the Dow already recovered last evening? In fact, it's coming down because traders are unsure of the real direction as the news were just rumors play. I mean there are many other supply/demand factors into the charts and not just news but in a nutshell, don't trust the news, it's not over yet. So is the trade war going to be good or bad? I can tell you, it's going to be a volatile swing when the actual news released. For now, I remained cautious as the market strength is still weak. I will share more on this observation on Oct 1st cheatsheet talk.

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Ronald K - Market Psychologist - A Stock Market Opportunist