Tuesday 19 June 2018

STI is the Only Flower stuck in a pile of Cow Dung! - The only major index in Asia that is in the Green

Dear Friends,

A few days ago, I issued a post on where I think is the accumulation area of STI - 3300-3350. Yesterday it dropped into this region.

Posting a few days back:

And last night, Donald Trump issue another threat on China saying he would implement 10% tariffs on US$200B worth of China Goods.

This scare the hell out of Asia market again. 

Today Hang Seng has dropped 650 points, Nikkei 300 points, Shanghai Composite 90 points!


But wait a minute, Singapore STI is up by near to 10 points now! 

What on earth is happening?

In Chinese, this is called, "一朵鲜花插在牛粪上 ”, meaning
"One flower stuck in a pile of Cow Dung".

In trading, we call this phenomenon "Resilience"

This is one of the most important concept when it comes to trading.

In a down market, i always study which stock index is still in the green.
In a sell down day, i always study which stock still is still strong.
In a lousy month, i always study which sector has a positive month.

This is the stock index, the sector or the stock that is more resilient than the others.

When market recovers, they will run faster!

I always say in investment "Don't worry about a Down Day!" "Down days are what differentiate the Warriors from Cowards!"

Daniel Loh

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"To achieve Financial Freedom, Be Financially Educated" - Daniel Loh

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