US Cash Fuel from Repo, Debt and T-bill purchases

There are less and less reason to doubt that the US is rallying because of the money pumped into the system to spike continued rallies in the US. Resistance for such a move is also astronomically low as of now. This is akin to the last burst analogy during a race but it ends and “rests”. Thus, there might be more rallying in the market in the US and US related shares but what about the markets like STI?

STI was hovering around 3200-3210 in the past week for the most part despite All Time Highs in the US markets, which STI is predominantly following until early November. Basically, anyone buying into the market right now is voting for Trump to win the 2020 elections because the rally is supported by Trumps push of the fed and the signing of the 1.4 Trillion bill to keep the government service going.

It would be a lie to tell you that TA wise there is any ground breaking developments. For we will just zoom straight into the weekly charts for an update vis-a-vis 9 and 20 weeks MA

STI – Updated Weekly Chart

16-20 Dec was rather bearish and there were no significant breakouts for STI. The inference that we can get from this is that the market is still undecided on the future of the Singapore Market and have held a slightly null to negative sentiment.

Overall Resistance and support is still far from the weekly candlestick. No further inference can be made about last week’s market other than the mid week scare which push investors and traders in and out of the market. This resulted in an almost stalemate condition ending on 20 Dec.

Author Call

• Market is hovering around 9 MA at 3215
• Maintain that STI will rally towards 3250 then 3280 (Limited by Bollinger upper limit)
• Pumping of US cheap monies will likely benefit corps in SG who is related to US counterparts who can enjoy cheap loans
• Trade war shares are likely to continue rallying as tensions are alleviated
• Trump will continue to support economy and therefore will mellow down to maintain market stability for continued rallying

Author Call (As of 13 Dec)

• STI Rallying towards 3250 then 3290
• Will likely pass 3220 in the coming week
• Phase one deal will boost investors trust
• Good time to buy shares which are depressed due to trade tensions