Very surprisingly lately... Dow Jones have been rallying almost a month but not the Asian markets. Caught most analysts, experts and traders wrong footing. Meanwhile, ST index broke below 3,150, down 48 pts to almost 3,136 level today. The next critical level is about 3,120 pts. If below 3,100 points shall be a good entry point. So conserve your bullets and ready to fire good!!
Main reason for STI should be due to the interest rate hike from china. I wouldn't lose too much sleep. Reasons: past interest rate hikes as long as it is not done too aggressively or frequently, create only a short term dampening effect on STI The S&P VIX volatility index is Almost at it's lowest reading of below 16 even after digesting the news of the interest hike. Egypt seem more like an irritant than a real threat to world economy given the demonstrators have become less violent after the army change their stance from accommodating to catious. I am not too big a fan of technical analysis, so I believe the fall should be a good buying opportunity if your counters have turn cheap. Most of the counters I am watching are relatively unchanged Watch out for s-chip with high gearing thou. They will be the most affected.
This correction is a good time to re-stock our portfolios. There are many factors that will support a rebound in stock prices - including the record low interest rates which wont start to rise until year-end in small quantities.
After reading about the record 11.6 m tourism arrivals in 2010, I wish I had picked up CDL Hospitality Trusts last year...... sigh!
June it was only $1.60+, now $2 +.
The fish that could grow into a Big Fish is Sino Grandness , which has shot up already from 40 to 60 cents, as it is enjoying strong earnings growth from its Chinac beverage sales and is expanding its distribution network in China.
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