With the not so good closing of STI yesterday, it should be smarter to be more alert today. I still see many stocks as tiger head, snake tail...beware. Tonight i spent alot of time looking at 1998 and 2002 STI's performance. Familiar years? Yes they are the world cup years! haha
Market always decline after world cup...i do not have the data for 1994 though. In 1998 we have the infamous Asian Currency Crisis so it might be the reason. But there is no crisis in 2002. During the World Cup Finals which was also the School Holidays, Trading volume will be expected to be very thin. While this will make trading difficult, but it is also a good time to load up good stocks on weakness.
Then i also look at past elections. 1997 and 2001....woo...again both time market rally up to 4 weeks after elections and then start to correct. This is something to look out for. And of course, before elections market is always up.
Summary, after our Elections, watch for signs for weakness. Also, while you didn't forget to cut loss over the last few retracement days, did you forget to buy? : )
GrowMoney QuickPick
Stock: Line of least resistance
Biosensor: 1.24
Superkopi: 0.620
GlobalTest: 0.370
SembCorp: 3.62
Metro: Bottom Fishing
MMI: Bottom Fishing
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.
