2 weeks ago when I observed that STI has become the number one performer gaining 3.93% year-to-date, Straits Times Index(STI) ended this week gaining 9.94% year-to-date. STI has further strengthened its leading position among stock indices year-to-date for the past 2 weeks.
To check out the sentiments among Singapore investors regarding STI and our local market, I started 2 threads on Hardwarezone MoneyMind forum. One about the wonderful performance of STI this year, the other about my optimism regarding Singapore's stock market in the coming years. These threads attracted intelligent comments, including from the naysayers. The amount of negative comments boosts my optimism. I'm not saying the naysayers are wrong but if the consensus is bull market ahead, then most likely it is not going to happen.
In financial markets, consensus opinion on a bull market is usually wrong because it means there's little money left to drive the market anymore.
Having nay-sayers is a good sign for an impending bull market in STI and Singapore's stock market.
This week was a good one for HK and China stock indices as well. Despite this, the broad market is weak. Most stocks are still trading below the key moving averages. Still not a good market for traders to get aggressively in.
Furthermore, the present U.S rally looks increasingly like a bear market sucker rally. The power rally is in the energy sector.
Mr Market is worried about rising interest rates and Russian invasion of Ukraine.
Let's observe how much Asian markets weaken next week in response to U.S market's weakness.