STI Up Trend To Continue

Singapore stock market staged a strong recovery in 2010. The STI index is up 10% year on year with the index moving from 2897.62 on 31 Dec 09 to 3190.04 on 31 Dec 10. With 2010 behind us, where is STI heading?

The phase chart is suggesting continuation of the current up trend. The index is now near its 50 day moving average. The 200 day moving average is still rising with a positive slope meaning that the long term trend is still intact. The support level is at 3100 level and resistance is at 3220 level. The index looked to be forming a head and shoulder pattern but the index was above to rebound near its neckline. The index now has to go above 3200 level to break the current trading range of 3100 to 3220. Once this resistance is cleared, the next resistance is at 3300 level. In the mean time, the bulls should have the upper hand. Remember the trend is your friend, and that friend is pointing to further upward momentum. Happy 2011!

STI In Warning Phase

2010 is coming to a close. It has been a great year for the Singapore stock market with the index beginning the year at 2897. We are now above the 3000 level with the index slightly below its 50 day moving average. This puts the STI index in “Warning” phase.

The index is looking like it is forming the right shoulder of a head-and-shoulder top formation. The neckline for this pattern is between 3100 to 3120 levels.

The index has to move quickly above its 50 day moving average. Doing so will negate the head-and-shoulder pattern.

The index has been losing momentum and market participation has dwindled to a low due to the holiday season. Support is at 3100 to 3120 levels.

STI Still In Bullish Mode

Singapore’s Straits Times Index has been flirting with its 50 day moving average. The index has moved below the 50 day moving average on several occasions only to stage a rebound to close above it. The 50 day moving average is now at 2668 and this will be a critical support level going forward.

The phase chart is now back in “Bullish” phase although it went into “Warning” phase in the first 2 weeks of November.

The index is also showing difficulty in moving above 2740 level. Break above 2740 will mean a target objective of 2900. Let’s see if the bulls can keep the rally going.

STI Updates

We are halfway through the month of September. The correction that most people are anticipating is nowhere in sight.

The phase chart for STI is still in "Bullish" phase. The strategy now is still buy on dips and to stay with the bullish uptrend.

So long as the 50 day moving average is not broken, the market should still be on an uptrend.

STI In Bullish Phase

Singapore STI has snapped back into bullish territory. The index tested its 50 day moving average in mid July before staging a rebound. The index is now above 2500 level and is at Sep 08 level.

The party looks set to continue.

STI

STI moved to "Bullish" phase on 29 May 09. The last time the index moved to "Bullish" stage is on Oct 07.

Analysts are still debating on whether this is a bull or bear market rally. But judging on the phase chart, it is clearly showing an uptrend.

STI

STI index has started its decent from its recent rally. The index has stayed in “Recovery” phase since 4 May 09. The 200 day moving average is at 1985. Since Jan 08, the 50 day moving average has been below its 200 day moving average with the index firmly below the 200 day moving average. May 09 marks the first time in more than a year in which the index stayed above its 200 day moving average.

The market is still not decided on whether it is a beginning of a new bull market or simply a bear market rally.

The next milestone to look at is to see whether the 50 day moving average can go above its 200 day moving average.

STI Update

STI continued its bull run and is now at 1896 level. The index has stayed 19 trading days in “Recovery” mode. The index is showing some fatigue as it approaches its 200 day moving average of 2075.

Similar pattern is seen in US market with the Dow Jones Industrial Average ascent slowing down as it approaches its 200 day moving average of 9230.

The pullback if it happens will tell us whether this is a bear rally or beginning of a bull run.

STI Update

Singapore stock market is having a good run. The index is now 6.8% above its 50 day moving average.

From the phase chart, we are now in “Recovery” mode. The index has moved into “Recovery” mode 4 times since it went into “Bearish” mode in the beginning of Jan 2008.

The index is facing resistance level of 1780. We have not seen such strength in the market for a long time now. Hopefully it can clear this level and proceed to test its 200 day moving average.

STI

Dow closed at 7062 on Friday, down 119 points. The index has fallen through the bottom set in Nov 08.

STI is also following a similar pattern. It is now at 1594 points. It looks likely that the index will go below the low of 1473 set on 28 Oct 08.

The phase chart is showing continuing weakness. The index is still in “bearish” territory. It did go above its 50 day moving average for a while however the momentum could not be sustained. Singapore market, being an export dependent economy, will need other countries especially US and China to recover first before our own market can climb out of the doldrums.

STI Update

STI index is testing its 50 day moving average again. Based on the Wednesday closing level, phase chart for STI is still in recovery mode with the index above its 50 day moving average of 1759.

However we are now seeing the index at 1711 (10 am Singapore time), which pushes the index back to “Bearish” mode.

With Singapore’s budget day approaching, the bears may close their positions to avoid any surprises next week.

Let’s see if the index is able to push back above its 50 day moving average today. It is finding support at 1711. That is the low set on 24 Dec 08.

Singapore Market

We have come to the end of 2008. It has been a turbulent year where trillions of dollars have evaporated in the world financial market.

Market has been pretty quiet for the past week with trading volume hitting historical low due to lack of market participation during the festive season.

Singapore market looks to be stuck in a trading range since hitting a low of 1473 established on 28 Oct 08. The FTSE STI index is now slightly below its 50 day moving average. The market tried to rally above its 50 day moving average and actually managed to close above it for 2 trading days on 18 and 19 Dec respectively. However, there was not enough strength to sustain the up move.

Looking at the charts, the trend is still negative at this point in time.

Singapore Market

What a difference a week makes. STI closed at 1948 points dropping a whopping 15% in a week.

The current down swing started on 4 Jun 08 when the index closed below its 50 day moving average after attempting to break out of the “Bearish” phase.

The situation seems to have spun out of control even after the US passed a USD $700 billion package that was supposed to bring relief to the financial system.

It is anybody’s guess whether the market will stage a fast or slow recovery. But as a trend investor, it is not advisable to buy into equity market at this point as the market is clearing stuck in bearish mode.

Singapore Market

The Singapore market ended the week at 2570. The US government intervention only managed to spur the market on Monday by 120 points and we are actually down 4 points for the week. Traders are using any rebound as a means to get out of the market which is not a good sign for the bulls.

The STI is still firmly in “Bear” territory. The market did try to climb out of the down trend but the moved ended on 4 Jun 08. The market has stayed in “Bear” phase for 72 consecutive trading days.

US officials have been working overtime this week to cook up something to help Lehman Brothers. Hopefully they can make it in time before the Asian market open on Monday.

Singapore Market

Congratulations to the Singapore Women’s Table Tennis Team for winning a Silver medal. The nation is rejoicing from the medal win but stock traders are experiencing a mood of a different kind.



The Singapore Market is going through a difficult patch for the Bulls. Trading volume has been on the decline and there are no signs that the market is going to rebound strongly anytime soon.

The phase chart is still showing a “Bearish” trend. Maybe when it comes to the last quarter, which is traditionally good for the stock market, the market will rebound. But at this moment, those who want to enter the market must trade with caution.

The 50 day moving average is at 2926 and 200 day moving average is at 3140.

STI Update

STI index is still in “Bearish” mode. The index closed at 2847 points, down from 2926 points.



The index fell into “Bearish” phase in the beginning of June and has now stayed in this mode for 32 trading days. The index is now near the low of 2746 established on 22 Jan 08.

The market is still in a down trend and it is not advisable to play the long side of the market.

The previous “Bear” attack lasted 51 days from 9 Jan 08 till 24 Mar 08. Let’s see how long this bear attack will last.

STI Update

STI is suffering from another round of Bear attack. The index is now back to “Bearish” phase.

The index has stayed in “Bearish” mode for 5 trading days now. Let’s hope it can move out of “Bearish” mode soon.

The index is now below both the 50 day and 200 day moving average of 3154 and 3303 respectively.

STI Update

STI closed at 3192 on Friday, up 70 points for the week.




The 50 day moving average is increasing, that is a good sign for Bullish investors. The index has been in “Recovery” mode since 25 Mar 2008, a total of 47 trading days.

The index is now between the 200 day moving average of 3308 and 50 day moving average of 3126. The longer the index stays above its 50 day moving average indicates that the bears are losing strength and are not able to move the index below its 50 day moving average.

However, in order for the Bulls to declare victory, it will have to climb above its 200 day moving average.

So long as the 50 day moving average can keep its upward momentum, the index is likely to move to “Accumulation” mode soon.

STI Update

STI closed at 3189 on Friday. For the week, the index is up by 64 points. The index is lying between its 50 day and 200 day moving average of 3025 and 3348 respectively.



The index has stayed in “Recovery” mode for 24 trading days now. Looking back at the historical data, the index stayed in “Recovery” phase for 22 trading days from 29 Apr 03 to 30 May 03 before moving to “Accumulation” and “Bullish” mode.

Let’s see if the index has the power to clear the 200 day moving average.

STI Update

STI closed at 3042.96 on Monday, down 83.91 points. That is a drop of more than 2%.

Looking at the phase chart and moving average chart,



The STI is still at "Recovery" phase. It has stayed in "Recovery" phase for 15 trading days. This is the best performance for the index so far in 2008.

The next support for STI is 2995.45. If the index can hold above its 50 day moving average of 2995.45, then the "Recovery" is still intact.