Weekly/Monthly Wrap

For the week ended May 31,  STI had its biggest drop in a year, lost 81.8 points or 2.4%. Its previous big drop was May 2012, which lost 3.6% each week in the first two weeks 2012Yr.

Take a look at below Index weekly performance table, STI is the worst index among the six major indices I monitor. Are we over reacted? worried too much to the Fed's debt purchasing? SSE is the only green index with positive gain last week.

Take a look at STI weekly chart, we are back down to its previous resistance level 3207, now turns to possible major support. The general uptrend is well intact. It's expected STI could be "rest" or consolidate in the range 3280-3320, before it resume upside move. I will be looking to slowly load some stocks in coming week.

Below table is the indices monthly performance for May. Do we have the evidence for the famous convention "Sell in May, go away"? Yes but only for HSI and STI. The rest indices are very bullish in fact. For the whole month of May, STI lost 56.8 points or 1.7%, the worst index in May. Iinterestingly, STI dropped the most in last May as well. So...conclusion is we Singaporean a big believer in "Sell in May, go away"?? Err...