Stock Markets - Looking At My Crystal Ball

whatever tomorrow brings...

One of my favourite topic is always about the capital and commodity markets. I began my career when I was 20 years old as a commodity investment trader and went on to spend 20 years in the stockbroking industry thereafter.

Indices      52Weeks Hi/Lo              5year Hi/Lo              Current week ending 13/03/2020

N225        24115/16690                     24448/14864             17431
SSE          3288/2685                         5178/2440                 2887
HSI          30280/22519                    33484/18278              24032 
DJIA        29568/21154                    29568/15370              23185
S&P 500    3393/2478                      3393/1810                  2711
NASDAQ   9838/7194                    9838/4209                  7874
FTSE          7727/5237                     7903/5237                  5366
STIC          3415/2510                                                        2634
FTSE BURSA 1691/1320                                                  1344 

This week or so, major sell downs is probably caused by combination of side-effects of trade wars, tariffs, global protectionism and bathed with Covid19-contagion, gripped by isolation and lockdowns. The halting economies cracking at  or under 50 per cent did nothing to help restore confidence.

By Thursday, 12th March (SG time), as I resume consciousness after an (LA)operation,  I relooked at some of the indices/charts and most reflect 'bottoming out' formations with  grossly oversold positions. It was "buy for rebound" & "sell into strength" scenerios.

"Buy for rebound"??? Why so???
The markets seem to be scurrying for safe shores and many were re-cashing out. It is as though "cash is king" has just returned. The nearer truth is probably meeting of cash-calls and margin top-ups.
At extremes of sell-downs, it's a "trading buy"

"Sell into strengths"??? Whys so ???
The fact that many investment instruments were sold down, coupled with substantially slower economic activities warrant a re-rating and reassessment.

Nobody goes broke by taking profits

From the charts, [most of] the markets is likely to recover and trade at "range-bound". Another testing of the recent lows, after the rebound is not totally unexpected. Brave a 2nd Qtr volatility and a 3rd Qtr base building. The year may end with a more positive recovery mode.

This is not an investment advice and nothing here should be construed likewise. Consult your brokers, bankers, investment experts for advises.

Everyone wants to make money but few wants to do homework.

Smart monies will find safe shores but smarter fund managers will find "gems in the rocks"


Good LUCK; if you make money, please spare some changes for the poor, less fortunate and the life-strugglers