Market Review 6 Aug 2011

Over the past two days, global stock markets had been seriously whacked down by investors and traders. There was no cheers from the news on lifting the US debt ceiling, instead fears were all in the investors mind. Late on friday US time, Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.


Few weeks ago, I had already declared bull market is over. In fact, if you could see, most of the stocks on SGX were correcting since as early as 2010. The STI has been maintaining its bull mainly due to certain strong component stocks holding STI up. 

  

As you can see, the current indicies are still traded quite high. Judging from the Euro and US debt problem, likely chance that soon they will be going into another round of recession. Which mean asia market more or less will be affected too no matter what.


Therefore, spikes&curves investment stunt is rather conservative at this moment. Those large drop may present short term trading opportunities. However, we recommend to take profit as fast as possible.