Dear friends
For the past few weeks starting 19/Jan, stock market has corrected almost close to 9% for STI. I would see this as a healthy correction but not a bear market itself. In fact, I would encourage looking for those strong company and buying them at low price using this opportunities.
On 12/Feb, S & P 500 close @ 1075 forming a possible “hanging man”. This is due to China government has announced the raising for the ratio of reserves banks must set aside by 0.5 of a percentage point to further control China inflation and housing bubble. Depending on the US market situation on Tuesday (Mon is President's Day for US), STI may gap down upon reacting to this news when re-open on Wednesday
In the next few weeks, the stocks market are expected to be volatile especially for commodities stocks such as Noble or Olam since the move made by China , one of the world's biggest consumers of commodities, to slow the pace of bank lending triggered a rally in the U.S. dollar and a sell-off in commodities.
In addition, do look out for stocks relating shipping since NOL has reported a earning loss which could form possible selling pressure to other cargo company as well (e.g. Cosco).
Coming news
Whole week: Progress on the Fed stimulus exit plan and Europe budget plan to save Greece.
Thurs: Crude Oil Inventories (Important news for commodities stock)
Important resistance of S & P 500: 1091
Immediate Support of S & P 500: 1056
MY TACTIC: I just en-cash all my stocks. However I am looking to BUY BUT NOT AT THIS MOMENT. (STI below 2700 or S & P break 1091 then I review again)
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