No more circuit breakers but fear persists

Numbers are back up and this time it seems as if the vaccines are almost ineffective in terms of preventing spread. Besides the science and efficacy of the vaccines, the social impact of this spread is only starting to unfold. Right now, the MTF has decided to allow the spread to continue with as much monitoring as possible so that they can study the data and impacts of the virus. Needless to say that the spread will lead to an increase in eventual death and severe illnesses yet we cannot morally say whether we should sacrifice either people’s freedom or health entirely in this case. Therefore, how the economy will be impacted is still unknown. Last week’s market reactions were mild but overall I think the government is still trying to boost the market to keep our recovery plans on track. Here are some updates following last week’s market movements.

STI – Updated Daily Chart

The daily chart of the STI continues to consolidate sideways as the new daily cases continues to threaten the market if the situation worsens further. Almost there is some level of assurances from the MTF, we shouldn’t rule out the ultimate measure that is for Singapore to enter another circuit breaker as a form of a last resort. Hence, my take in the near term would be how the number severe cases will change in the next 2 to 4 weeks. If the numbers continue to increase or worse at an exponential rate, then perhaps we should see drastic reactions in the market as well.

STI – Updated Monthly Chart

Little to cheer about but it is still good news that there is a small rebound following last week’s closing below the second support line as shown on the monthly chart. Investors should still be cautious when buying or accumulating but overall I would say that there is little reason to panic for now.

Author’s Call as of 11th September 2021

• Infection numbers are on the rise but if the situation stays manageable then STI will continue its ascend
• Daily chart continues to consolidate sideways as investors are unsure of the developments of the spread in the next few weeks
• Monthly. Chart exposes that there is no panic in the market yet probably cause of the reassurance given by the MTF
• Stay cautious when buying and accumulating but otherwise the market remains conducive for longer term investments
• Expect short term volatility and taking profit might still be a good idea for some tranches of your investments

Author’s Call as of 4th September 2021

• Rise in community cases continues to haunt the market however MTF will nto revert to heightened measures
• The daily chart continues to trend sideways but we are still awaiting confirmation if there is further selling from Monday
• Monthly chart is worrying but within reason, still have the rest of the month to determine the longer term fate of STI
• Best to stay cautious but as usual buying back at a lower entry will be advise if sold to take profit in the previous weeks