just a quick analysis on the market. sti closed above 2,700 level yesterday, a new high for the year and DJ also closed above the 10,000 level first time for the year. all these were boasted by the better than expected corporate earnings and weakening of usd so far. sentiment might be bullish but market is still within the consolidation phase. the difference is sti has shifted up the consolidation range from previously 2,570 - 2,680 to now 2,680 - 2,720/2,740. the potential target of 2,850 - 2,950 will need more catalyst to sustain.
on monday singapore government announced its advance 3Q GDP indicating singapore is out of recession and the following day they announced extending the job credit scheme for another 6-month to help companies tided over the difficult times. these are just a composite of the required catalyst for further upside on the rally. the remaining catalyst will be on corporate earnings namely those from bank sector, property sector, commodity sector and offshore/marine sectors. these results will be coming out within the next few days and with better than expected earnings that could spike the sti to 2,850 - 2,950 level.
for investors who still holding stocks at lower price and with reasonable good buffer now, continue to hold as you have the margin of safety.
for short-term investors/traders, as long as sti still within the consolidation range, trading still have to be cautious, maintain tight cut-loss and alert in taking profit.
for those who think missing the rally and with holding power, any pull back to the lower level of the consolidation region would be an entry level.
