Steep drop last week unwarranted but reflects underlying instability
Horrendous drop in the past week with a gap between candlesticks heading to new lows. Apparently, this is caused by the obvious delays from the highly anticipated stimulus in the US. This is on top of the lopsided polls favoring a Biden win that would affect the value of risk assets due to the eventual increase in corporate taxes in the event of a Biden Presidency. That said, Singapore’s market performed rather poorly compared to HSI and KLSE. In this week’s post, we will try and look beyond the erratic performance of STI and discuss about possible actions to take in the coming week.
STI – Updated Daily Chart
9 Day MA has crossed 20 days MA signalling trend reversal
STI performed worse than HSI and KLSE
To say the least, if you have been earnestly following sound investing strategies then you should be feeling rather defeated and dismayed.