My blogs in recent past have been focussing on forex especially in relationship with Singapore Dollar. Forex has been active recently due to multiple factors. US economy IS recovering, signified by the strengthening of USD. The Greece saga threatening the Euro, the revelation of high level corruption of the Malaysia's elite and of course who can forget the late devaluation of RMB.
Comparatively, Singapore stock market IS REALLY QUIET. Practically there is nothing to show case.
Anyway, I was pulling out some of the GICs' profile to check on their performance. I kind of wonder why that the GICs are the only "performing stocks in the market and maintain dollar level values. This seriously in contrast will all other counters that reach as low as penny and sub-penny level.
Are these counters really performing as a company?
I picked up ST Engineering since it is supposed to be a representation of the engineering field.
Fig 1 ST Engineering weekly chart
A simple look at the chart and I ca say, " it is doomed!" First a double top with minimum objective of SGD2.50. In fact it was so affected by the China event that it plunged SGD0.20 just this week! Wow!
On top of a double top, there is also a triangle formation which was broken downward. this of course are more lenient with minimum objective of SGD2.80.
But seriously dude, what justifies such high value of this counter? Its main and almost only customer is the Singapore government and I am not sure if the Government is actually trying to maintain its survival by thinking out projects for ST Engineering.
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