STI clawed back up 191 pts (6.12%) with a volume of 2.5 billion (low vol), with a total of 883 gainers to 125 losers, closing at 3322. I've never seen STI rally up 6.12% ever! A real eye opener today :P A rather broadbased rally from what I can observe from my watchlist. Most of the banks and property stocks went up a lot. Low volume is what worries me.
I wouldn't say we are out of the blues yet. Again, we have to check for higher lows and higher high before we can confirm that an uptrend is ongoing. At best, we have to wait for confirmation over the next trading sessions to see if resistances are broken. At least for today, 3300 hurdle is crossed.
Across asia, stock bourses boomed after the announcement of the reduction in fed discount rate given to banks. Shanghai went up 5.33%m, HSI the powerhouse went up 1200 pts (I've never seen this before in a single day!), up 5.93%, Jakarta composite went up 6.97%, Nikkei up3% and South Korea Kospi went up 5.69%.
Most of my stocks went up a lot, though I'm hoping more :P My losses dropped to 18k now, still nursing from the recent battering. From what I see, there are 2 scenarios that can be played out. A lot depends on how FED rate meeting goes on sept 18. If the situation worsen over at their side, they might just cut rates to save their economic from sinking into recession, thus saving buying time for the inevitable. Either way, STI might benefit from the sell off and buyers might come in and we'll have a wonderful year end rally to celebrate the last leg of the bull run till early next year. Another scenario would be that despite all the good news, we didn't move up. Then we can all sit tight and prepare for bear to consume us all.
I'm too tired to chart out any supports/resistance for STI nor any of my stocks. See see look look can already, ahah :P
Dow up 13 pts, europe all green.
Weekly economic and financial commentary
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