0.75% rate hike and probably more pain ahead, as Fed remains its hawkish view which didn’t sit that well with the markets and we saw selling coming in throughout the week. As always we warned about going in before any big event and always waiting the day after before making an moves. Hopefully this saved those who were considering going LONG before a bloodbath happen.
As S&P500 comes very close to June low, this could give rise to an opportunity to add into our long term portfolio as this support becomes a significant point for the market to test. If this support holds, we might even see a rebound in the coming week. Head over to our Facebook page to read up more.
STI also caved in on Friday as Singapore’s core inflation rises to 5.1% in August, inching towards 14-year high. Inflation is hitting countries hard and Singapore is not spared. We can see that STI broke the uptrend line on friday and a pullback to our second downside support of around 3190 might be seen in the coming weeks. Waiting for more pullback first.
HSI come down as expected and even broke the March low! Once again, looking ahead for Oct meeting before adding any position as market might drift a little lower and there is no real hurry to move in yet. We’re bullish on China/HK but looking for a better entry.
Do head over to our Facebook page for more updates on S&P500 and where it might head after the massive sell down. Updates for Nasdaq is also over there.
Kelwin & Roy