Friday, September 19, 2008

Will Singapore Stock Market Rebound?

If we were in a bull market, and STI breaks my 'bottom' indicator, I would have bought into the market. If we were in a bull market, and STI rebounded from the day's low, I would have bought into the market. These are signs that Singapore Stock Market had bottomed and reversal of trend will take place.

However, as we are in a bear market, I was extra cautious of the bull trap, so did not take positions yesterday when all the signs of bottoming and reversal were there.

Then I read the comments of my US expert resource (should be asleep but was watching the crash of the Asian Markets instead), as follows:

"The S&P 500 had closed down more than 4% in two of the last three trading days. The last time this occurred was during the 1987 crash. Most occurrences were during the Great Depression (1928 to 1948). An interesting observation was the performance of S&P 500 on the day following the occurrence was an up day. There was also a 50% chance that the index would be up over the next week and month.”

I shall wait to see what happens on Thursday night and Friday, and read the weekend reports/forecasts for next week. Better be safe than sorry!

Do you think the Singapore Stock Market will rebound and go into a short-term bear market rally?

(I usually prepare my articles at night and schedule for posting next morning)

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