Look out if the rally can be sustain!

On 1/Mar, STI ended up 23.20 points or 0.8% at 2,774.06 @ AVE VOL of 1.47 billion shares traded compared with 1.28 billion Friday. In the broader market, gainers outnumbered losers 332 to 157.

There are 2 main reasons for the rally today.

Copper futures soar after the massive earthquake in Chile, the world's largest copper producing country. Although damage to the copper mines seems limited but the price jumped on concerns that supply could be disrupted by damage to infrastructure. This in turn drove the commodities stocks up as well.

In addition, there are reports over the weekend that Germany & France will be coming up with plans to bail out Greece with aid of as much as EUR30 billion. However the timing and terms of any rescue still remained unclear.

Overall I would advise to limit any buying as we approach the resistance of 2825. The market sentiment is still unclear and may change any moment. However I would NOT encourage selling tomorrow morning as well, just staying alert and look out if the rally can sustain (Set a “take profit” level and sell once the price drop)