It has been a while since my last post.
In my recent 938FM Live Interview, I talked about the following topics:
- STI is still in a rally momentum, will the rally sustain or do you expect a technical pullback at some point?
- How should investors and traders approach the market at this time?
- What stocks or sectors are you on the lookout for?
I have uploaded the audio for you. In the notes section below, I have expanded on the points mentioned and have updated to the current week.
My upcoming 938FM Live Interviews
STI is still in a rally momentum, will the rally sustain or do you expect a technical pullback at some point?
After you have viewed the STI chart, you would realized that the rally will continue for a short while.
Our STI index has been on an uptrend since end of last year. We have been seeing significant growth since then. The uptrend pattern has been substantiated by the cycle: A rally, followed by technical pullbacks / consolidation or sideways movements - to accumulate buyers, and a rally continuation. This holds true to date since end of 2016.
[Update] The short rally has occurred and I am now expecting another period of consolidation or pullback for to accumulate more buyers for the next rally.
How should investors and traders approach the market at this time?
At this point in time, this is more towards a traders' market, rather than investors. We have seen an episode of penny stock runs being in play, such as Noble (yes, it is now a penny stock play), Rowsley, Sincap and all these small counters.
The penny stock run has dried up, which has led to investors and traders alike to look at the banks and to look the momentum pick up for such heavyweight counters (large to mid cap counters).
For the traders, it is a time for the trend traders.
[Update] Congratulations to those who listened in live that day. The large to mid caps have moved up. As mentioned, it is now time to wait for the next consolidation of buyers.
What stocks or sectors are you on the lookout for?
For myself, I am looking at the REITS sector (I am ALWAYS looking at the REITS sector to accumulate for my dividend portfolio).
Today, there is a lot of hype going on about Amazon Prime, or the move of Alibaba's penetration into Singapore via Lazada and Singpost. This will invoke fear in the REITS sentiment and a dip in the REITS sector.
This will be a good opportunity for investors to evaluate and buy REITS at a discount.
[Update] Please make my dream come true, for me to pick up more REITS at the discount. I am waiting for a pullback to occur. I have read many recent articles and heard many opinions that the penetration of multiple eCommerce giants will cripple the retail industry, or that the physical retail industry is doomed.
Clearly not, in Singapore context.
Let's think critically.
If you remove most retail malls in Singapore (in future), where do you go on weekends?
Let's be frank. Even if you can order everything online, it doesn't equate to you staying at home all the time apart from work.
Where are most leisure activities or gathering points held at, to date?
Food for thought.
A probable scenario you will see, with more disruptive technologies and impacts to industries, is a transition in the type of tenants. Minor changes have been happening in most of the malls, and you can see an orientation change, inclined towards food & beverage and service-related tenants.
For those who love having such discussions, or would like to ask me about my views on the market, feel free to drop me a message on Facebook or comment on the post.
Cheers and I will see you in the market!