07 March 2016

Are we experiencing the bull run now?

STI has recovered from the recent low of 2531.79 points on 12 Feb 2016 to the closing price of today at 2823.51 points. A good 11.5% recovery for a period of one month. So what has triggered this bull run? I treat the current rise as a strong counter-trend rally rather than the start of a new bull market. Given the sharp rise over the past 1-2 weeks, we should be expecting a pullback from the 2840 level. Traditionally, March to April period is a benign period for Singapore market as blue chips tend to be well supported ahead of their XD period.

Technically, we are experiencing a slight recovery in the short term. Whether it will continue to rise to STI 3000 points and above, I am not too sure whether we will see it after the XD period. One thing for sure is, I will slowly take some profit of the table along the way and stay on the sidelined to see what the market is moving to. If the market starts to pull back now, I will just sit on it and collect the dividend once the XD period.

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