The Straits Times Index has been in a rising channel for weeks on end now, the narrative is that when U.S. corrects = Fed RRR will decrease to the benefit of Asian markets. This is simply untrue as US economy is still on a good growth path expectation is that the STI will correct more violently in the near future.
All of these new facts have yet to be priced in since the earlier ASIAN bottom in October 2018, there is no reason to believe asian markets have established any kind of bottom.
All of these new facts have yet to be priced in since the earlier ASIAN bottom in October 2018, there is no reason to believe asian markets have established any kind of bottom.
Comment:
I want to add that, there has been suspicious buying activity on STI, most notably during the first 10 minutes of trading on 20 December and 21 December respectively. Sell-offs were immediately tapered by unusual buying activity in the minutes following opening. The cardinal rule of any market is that one cannot fight the market equilibrium over the medium term. Trade safe until the plug is pulled on this index.
Trade closed: target reached:
TP