The uncertainty strikes back, Booster Compulsory

The omicron virus seems to be more infectious but experts are still unsure about its severity compared to the delta variant. If all it is is a variant that spreads faster then I still feel that it is less of a concern despite the spike in positive cases. That said, uncertainty in the market continues to brew worldwide. In the past week, we noticed that the indexes are swinging violently and many growth stocks are hit hard as the world rotate towards consumer staples and growth stocks. As we await confirmation on the latest variant, investors should be aware that newer variants will emerge as a result and we should aim for the steady state while living with covid rather than being covid free.

STI – Updated Daily Chart

Last week’s market movement showed that the Singapore market is still lacking confidence in the measures taken to manage the Omicron variant. At Friday’s closing, the daily chart showed that we are supported by a minor uptrend support line.

STI – Updated Weekly Chart

On the weekly chart, we notice that the STI has been holding steady above the 50 weeks moving average. At last week’s closing, STI dropped lower after market closed at 5pm from 3120 to 3111, which happens to be just above the 50 weeks MA.

Author’s Call as of 18th December 2021

• Booster shots are no longer voluntary because the efficacy of the mRNA vaccines are less effective towards the new Omicron variant
• The daily chart continues to show that investors are staying cautious albeit a little optimistic at closing on Friday
• The 50 weeks MA remains as the key support level for the past three weeks
• Investors should start spreading out their purchases as the dips ahead might be larger if the Omicron variant prove to be a bigger health threat even for the vaccinated.

Author’s Call as of 11th December 2021

• The market remains relatively neutral as there are still reasons to believe that the virus turns out to be more severe than expected
• The key levels on the daily chart to look out for will be 3120 and 3080 in the case of any bad news in the coming week
• The monthly chart show that the slight positive sentiment of the market is still much less confident than ideal
• Watch out for potential triggers and stay cautious in the coming week, sell if you have scooped to get back more of your reserve warchest if you have started using some of it during the correction.