I didn’t monitor the intraday action. Never did but I was concern about this correction. Somehow when I see blue chips all being sold down in tandem it seems to indicate that these are not coincidence.
Here the STI ETF shows prices moving below the 200 day EMA. We seen how in Sept 2010 that this may not be a long term downtrend but the threat of this happening looks much higher.
- Fund Seem to be flowing out of the country.
- Market as of now have rebounded near 100%, the same as the last 2003-2007 recovery.
One thing working currently is that although the 20 and 50 day EMA is heading down it is still above. A cut below the 200day EMA by the 2 moving averages should signal a possible trend change.
- Sold 65% of Singtel. No dividends. No gains. Not known for huge price appreciation. Why subject to volatility?
- Sold 60% of Cache Log REIT. No dividends. No gains. Do not want to be subjected to volatility
- Sold 100% Parkway Life REIT. Lock in gains. Yield on cost do not constitute to be extremely attractive
- Sold 90% of First REIT. Lock in gains. Should the market reverse and turns, current market price yield is still attractive.
- Sold 100% Noble. Lock in gains. Not a big holding
- Sold 50% of Starhub. Lock in gains. Should the market reverse and turns, current market price yield is still attractive.
To a lot of people this presents the last chance to get into the market. I choose to use the EMA as signals to reduce monitoring yet tell me the general price direction. There are definitely bargains and I will be going through some of them these few days.
In fact I repurchase 1 lot of Singtel at $2.87 today.
I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow myDividend Stock Tracker which is updated nightly here.