Tuesday, February 27, 2007

Review: STI

Today, the STI index saw the biggest 1 day drop in a while. The STI index dropped 2.29%. The last time the STI started its month long correction that saw almost 300 points wiped out, the STI closed 3.27% over the previous day.

Today's correction is not isolated. Most international indexes (HongKong, indonesia, Korean, Malaysia, Manila, Japan, Shanghai, ShenZhen, Thailand and Sydney) saw the red, following the USA's Monday poor performance.

This could be one of the tell tale sign of a correction that most are anticipating. Whether this happens or not will depend on whether the US market continues its slide tonight or not.

For those who have not been vested in the market, i recommend against it until the outlook becomes clearer. For those who are already in the market, fasten your seatbelts and be prepared for a bumpy ride. But stay vested in the shares you already hold.

1 comments:

sbh said...

hi, in such correction, do we still follow the cut-loss at 7% method? There is simply no time to react to cut loss at 7%. Maybe you can write a topic on this? Tks.