 (Updated 29/08/99)  N.B. Above Chart is abstracted from Metastock Program Last week, we said "Judging from the last Friday's closing, we are very positive for Singapore stock market and indeed we are just about to experience a bull run that will probably last for two to three months." Indeed, the market did perform in according to our expectation and managed to break out from the triangle. We also said that "If STI manage to break above 2100 this week, it would probably heading towards 2350-2400 level. The end August-early September rally is certainly on." We were pleased to see that our last week's prediction did come true again. A break at 2100 on STI may have just started the kick off for wave (5). Can we continue to see the rally next week? Are we going to break a new high in STI and when will that happen? While we believe the rally is certainly on, but a pull back in the early part of next week towards 2115-2080 remain quite possible. However, any pull back correction should be view as an opportunity to buy then to cut loss. With a little bit of luck we may see STI break above previous high of 2247 by end next week, if not, the following week. While Mr Alan Greenspan's last Friday speech may cause some concern in Dow Jones' performance next week, such concerned may only last for one or two days before the rally in T-bond come into the center stage to push the stock indices higher. After all, US investors still have to wait until middle of September for the economic data to gauge the next Fed move. In other words, the stock markets in Asia may now focus more on the regional and domestic issues for the coming weeks and be less influence by what is happening in USA. As such, with good economics data in Asia countries and the recent announcement of good corporate results, we should see a good rally in the coming weeks. The only unpredictable factors that may spoil the show, are the election in East Timor this coming Monday, and the tension between China and Taiwan. We expect STI to continue move up in the coming weeks, and Sesdeq will eventually move up to 183 either next week or the following. The sectors that we are favourable in term of priority are, Electronic, Finance and Property. Technically, STI has just completed its wave (4) and is now entering into wave (5). If our wave count is correct and that the bull market remain intact, then we are just about to enter the wave 2 and wave 3 of wave (5). As such, investors should take this opportunity to participate in the coming rally. The line L shall remain our last defend for the bull market. It seems that the preferred count in our "Long Term Perspective" site remains to be the most likely case that is going to happen.
Events To Watch For The Coming Weeks/Month |