Following the gap up and down on Hong Kong Hang Seng Index, Singapore Straits Time (STI) has experienced consecutive 3 days of crazy gap up and down too. This is extremely unusual and totally irrational, especially, STI close positively 122 points from Last friday close. That’s again is crazy.
Following the annoucement of the rescue plan from US government to the Fannie and Freddie brothers, it sounds like the whole world is celebrating today.
However, do you think this gain is sustainable to lead to a reversal from recent bearish market?
My take will be, it is still too early to tell.
122 Points Rally on Singapore STI is Not Sustainable
This kind of volatile gapping up and gapping down are totally unusual and I would consider it as special cause in quality managememt terminology. Special cause is non-consistent and it is also not sustainable. I like to find a more stable and normal market to trade and therefore I would rather stay out of the market for the time being.
I might be wrong, but I would rather be wrong than being burned to become charcoal.
For Singapore Straits Time Index or STI, immediate resistance remains near 2,730 – 2,773 area. As long as the market cannot break this resistance, there is still a high chance that the market would fall back to the current bear trend. I will be waiting for the price movement near that region to make a final call.
Crazy Gapping on Singapore Straits Time Index
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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