STI – Mid day analysis

The STI seems to be showing some patterns of late. It was propped up yesterday by advances from Capitaland and SIA and didn’t really reflect the sentiment of the broader market. Also noticed how the US markets end up red but STI would end green, and vice versa. Interesting trend eh?

I first had the STI’s upside target at 1920 or so. I lowered it to 1850. It was 1780 thereafter but now I am putting it to around 1740.  Previous analysis hasn’t changed somewhat. The bollinger bands are beginning to squeeze. When it is massively squeezed, it will breakout. A breakout is normally the continuation of the trend, which is bear at the moment. Watch for 1680 VERY carefully. The moment this one cracks with confirmation it will turn into a strong resistance. There are loads of bear signs everywhere and it will take a super duper event to negate them all, hence my advice is to buy with extreme caution.

Have I done any trades of late. Not really. SIA, UOB, capitaland (which I must close soon) CityDev, Cosco, Allgreen, Sembmar, SGX, Kepcorp.. (did i miss out anything else hmm) are all open still. I am eyeing DBS closely. UOL, SPC etc are also good shorting targets but I didn’t go in. No time! And all scripts were sold out already. grrrr

Trade safe guys. The squeeze on the STI is getting tighter and tighter..