China rolling back on Trade tariffs
China’s latest move to roll back tariffs in phase one is a strategic move to kick start the trade talks again with Trump (A Business Man). At the moment US is celebrating their early victory with all time highs with their Indices; however China will not be glad if US does not reciprocate. Get ready for turbulent times right after December tariffs are confirmed/cancelled.
US strategy might be to tame the market at least until US Elections in Nov 2020. Compared to last year’s rough Christmas, Trump presidency cannot afford to agitate US citizens again less he wants to lose the next elections to democrats.
Singapore’s Market reached another minor resistance before 3300
STI has hit 3264 (above 3250 resistance) and will continue to rally towards 3300 unless there are negative news on US trade talks with China. Right now market is cautions cause of the Q3 results reporting. In this period, you can pick up potential discounts on stocks which are still performing decently but falling short of last year’s results.
STI – Near Term (Daily Chart)
As it is trending above both Moving Averages (9 and 20 days), it is likely to continue towards 3300-3320 territory in the coming week. Breadtalk, ComfortDelgro and Singtel are reporting their financials in the coming week. Watch out for ComfortDelgro’s Results as they are slowly trending upwards in the past week.
STI – Updated Weekly Chart
Volatility has been high in Singapore markets has there has been increasing attention during Q3 reporting season, that itself fuels the rally towards the next target. Furthermore, the festive period is approaching hence there will be more people buying and holding for price stability in the coming weeks. Expect slower rallying in the coming week.
Clear path ahead towards 3320 for STI.
Author Calls
- STI rallying towards 3320 (Update from 3300)
- Impending bad news from businesses when next Quarter reports are out (consistent)
- Market conditions are stable for a longer position as of now (Till US Elections)
- Look out for financial reports in the coming weeks for Singtel, Breadtalk and ComfortDelgro.
