Asian markets has closed for the day, and it seems that the 2nd day of whipsaw action arrived again! Looking at the intraday chart for STI, it seems that it was falling dramatically to near to 3300 and suddenly the rally came again! Unfortunately, it isn't like the day before, where there were rumours or whatsoever that could have rallied this market. I was reading the forums and it seems that people were buying in again, assuming that the market is going to rally yet again. However, the heavy selldown came again and this time, all the way down to 3312 (-1.03%). I do not have any software to see the intraday candle charts for STI unfortunately.
As for other news, YEN/USD is currently at 108.64-108.67 - 0.47, which is probably getting from bad to worst. However, USD is still standing relatively strong against SGD, at 1.4503 SGD per $1 USD. I will try dig out some information with regards to the strengthening of the yen dollar against USD, and if this still carries on, many institutions will suffer this yen carry trade. For more information with regards to this yen carry trade, you may refer to this wiki to understand the structure:
http://en.wikipedia.org/wiki/Yen_carry_trade
Celestial and YZJ has fallen way below its expected value, and currently celestial trading at $1.15 and YZJ at $1.890, the heavy beating may seem to last quite a few more days. The market sentiment is quite bad in fact, and STI's trading volume is considered quite low as the top volume of the day is only about 44,260 (for YZJ). I won't be surprised about tonight's news, which will probably spook more investors! As I mentioned earlier, for the market to rally back again, blue chips will be the first to move. If blue chips doesn't recover, don't pin your hopes on 2nd-tier or 3rd tier counters.
A few blue chip counters I used for a gauge is Singtel, DBS, Capitaland. I monitor Singtel more often especially, as this is like one of the strongest companies for Singapore. Just like Apple and Google in the NASDAQ, it is a key indicator to identify the feel of the markets.
Next, before any rally as well, it has to go through a consolidation phase typically. It doesn't normally do a V pattern and shoot up all the way without any consolidation, as it requires investors and traders and etc to actually cover the gap up. If the markets allow this gap up to grow, the gap down covering will be even worst and when this happens, overselling will occur again.
I won't be monitoring the shares until next Wednesday as I will be going to Hong Kong for a holiday. In any case, don't make any rash decisions in this point of time and wait for the signs to appear to increase success rate! :)
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