STI Selling Off to 3000 level

STI down 34.6 point at 2999.42 now(10.44am)

1. STI already broke new yearly low yesterday and stocks selling off fast.
2. US mkt lost 170pts last night, 4th week in selling off;
3. the sell-off is nothing but on
1) Worry the Fed will cut stimulus plan in Sep, which means Economy is improving
2) US may start war against Syria 

 In conclusion, I think the sell off is an opportunity to buy those "valued" stocks.

STI level to watch today: 3008-2930

Stocks at major support level:
OCBC @9.85
Singtel @3.45
GLP @2.65
Kepland @3.3

Weekly Wrap

It's a ugly big red candle for STI, very bearish. STI dropped the most 108.7points or 3.4% down, in the 6 indices I've been monitoring.

The tapering measure by Fed seems not much affected US markets but the Asian markets, money seen continue out-flowing. STI hit new yearly low and closed new yearly low as well. Refer to below STI chart, it spiked down below its major uptrend line, I would like to see a rebounce to above the line in coming week, further downside if it can't make it.

STI and High Dividend Yield Stocks

STI dropped another 24 points yesterday, after it broke 3200 support last week. It closed at 3173, just 6 points above its 2012YEC 3167. STI will be outperform last year if above this level, or underperform if below this level.

As market drop, the lower the stock price, the higher will be its dividend yield, thus make those dividend yield focused stocks more attractive now. below are the latest high yield stocks as reported by SGX my gateway:

For full report please click: "Singapore's 10 highest yielding mid-cap stocks".

Weekly Wrap

For the week, US markets 3 major indexes dropped for 2nd week, in Asian market, STI followed, broke its key support level 3200 to downside. However Hang Seng index rose the most with 710.3 points or 3.3% gain and Shanghai SSE index gained little with 16.2 points or 0.8%.

US markets dropped as latest PMI exceeded expectation and shows US economy is continue improving, market worries Fed will taper stimulus in coming Sep FOMC meeting. DJI hit its historical high two weeks ago, market is seen take this opportunity for profit taking as well.

In China, Shanghai market experienced its historical biggest swing on Friday due to a fat finger mistake by a Financial brokerage firm. A 7 billion RMB(1453 million SGD) was bought into blue chips within 2 minutes time, which pushed the SSE index to more than 100 points but gave back all on close eventually.

Continue look good on Hang Seng HSI index for coming week.

DJI weekly candle looks pretty bearish, further downside if the brown color uptrend line broke in coming week.

 STI broke down its four week consolidation 3200 support, two YEC level to watch in coming week: 3190, and 3167.

HSI looks bullish on weekly candle, further upside is expected in coming week.

 SSE formed a huge long tails on the top daily candle, short term trend is up. Expected to rebound in coming week.

STI Nearly Broke Support 3218

Message from FB group:

US lost 225 pts last night, Fed stimulus cut in concern in coming Sep 17-18 FOMC meeting.

HSI little change -1@22539, SSE-18@2081. STI -27@3220, STI seems got early signal for US drop and went ahead yesterday.
STI tested its sideway support level 3218, if it CLOSED below 3218 today, the long time consolidation could be ended with further downside expected.

Long Candidates

Midas: my first alert on Aug 4 (click HERE):it went up to 52.5c yesterday.

ChinaMingZhong: reversed to uptrend confirmed. More upside is expected.

Weekly Wrap

Hi Everyone, Happy National Day!

A short week for STI due to two public holidays. For the week, major markets in red except Shanghai. The US three major indices pull back from 0.8% to 1.5% after it hit new historical high last week. Shanghai was on the top list with 1.1% gain to closed at 2052, it has been in consolidation around 2000 level for 6 weeks already, only one week in red and the rest five weeks in green.

Hang Seng was at the bottom with 1.7% loss.

STI dropped 24.2 points at 3230. Continue its sideway consolidation manner for 4th week. I don't see any clear direction at current stage, a close out side of the consolidation range 3218-3265 would provide us a clearer direction.

BRICS no More? China Economy in Focus

Long Candidates

Midas: breakout from its downtrend line, more upside if breakout 50.5c.

Hkalnd: more upside if it can hold above 6.9.

Monthly and Weekly Wrap

Jul just ended. Global market posted a green month. In particular, the US 3 major indices hit their new historical high in Jul. Nasdaq rose the most in Jul with 6.6% up, HSI added 1080 points or 5.2% in second rank, Shanghai added the least for 14.6 points or 0.7% at 1993, still struggling to find support at 2000 level. Refer to below table for index Jul performance:

 For the week ended 2nd Aug, US 3 indices hit new historical high again, funds are flowing into the US. Shanghai managed to stayed above 2000 mark this week, closed at 2029. GIC of Singapore Government Investment Fund and Temasek Holding reported both are positive on the Chinese Economy outlook, as current structural reform in the financial and government investments is good for Chinese GDP in long run.


STI for the week resisted by 50% fib 3265 s shown in below chart. A break above this level would lift the index further up.

SG: Largest Companies with High Yield

Singapore 15 largest companies by capitalisation from Straits Times :

Singapore largest companies with high yield from SGX "My Gateway":