 (Updated 26/06/99)  N.B. Above Chart is abstracted from Metastock Program Last week, we had make three predictions. First, we said "We believe STI will continue to move up towards 2100-2150 level." STI did move up in according to our expectation, but had exceeded 64 points than our maximum target, which gave us some surprise. Second, we said " The sectors that will lead the up-move will be Properties, Multi Industries and than follow by Banking in term of priority." Here, we were right 100%, the star performance was indeed the Properties sector, and that in term of % gains there were exactly as per our expectation that led by Properties, Multi Industries and than Banking sectors. Third, we said "Sesdeq, Electronic and Manufacturing sectors will begin their correction by the end of the week." We were in the dot again, for these sectors had begun their correction on Thursday and Friday, though towards the Friday's close bargain hunters did emerge. This week will be a bit more complicated. While Dow Jones looks like been trapped in a trading range between 10400 to 10900, a break of either sides may lead to a 10% move in the index. This will probably happen in the coming week, and the move will rule the entire stock markets in the world! As for Hang Seng and Nikkei indexes, both have begun to show some signs of momentum weakness, so if Hang Seng breaks below 13000 or Nikkei breaks below 17000, it may trigger a correction in the whole Asia region. Judging from the International development, it will be wiser to stay prudent while await the clearer sign from these markets to tell us the story. As for Singapore market, the music is certainly in play and is getting louder each day. This music (stock market) is not only been heard in the financial circle but way down to fish markets and taxi stands as well. This has led us to wonder, if the old game call "musical chairs" has begun in this Lion city. If it is so, I just wonder when the music stops, do we have enough chairs to cattle for the participants. If not, some disasters may be just not too far from the corner. While we will not rule out a possible of an attempt to a new high in both STI and MSCI indexes in the coming week, if they do happen, they would probably occur in the early part of the week that lead by Properties and Banking stocks, but such up-move should be short and brief. We believe penny stocks will continue their correction in the coming week and will probably lead the whole market in the process. A drop below 2100 in STI will signal a deeper correction in the card and may take a few weeks to consolidate. Investors who are still holding huge positions are therefore advise to turn prudent and do not over stretch themselves. Remember, market is always there and you do not have to be in all the time. The wise man will study carefully on the risk/ reward of the situation and determine when is the right time to be in the market. Technically, STI has just completed its wave 4 and is now entering into wave 5. Expect STI to reach between 2200-2250 before some deeper correction emerge. A break out after the correction will help us in determine which scenario in our "Long Term Perspective" site is the most likely to happen in the coming months.
Events To Watch For The Coming Weeks/Month |