Straits Times Index

Straits Times Index visited 2900 much earlier than many people expected. I guess many traders and investors were taken aback by this strong move. Much of this strength could be attributed to Wall Street's rally the last two days.

Personally, I am not in the business of predicting the market but in the short 2 years of market experience, I prefer to sell while the market is going up versus throwing in time of panic selling.

Technically, STI has been sitting on top of the upper trend line (drawn from 3rd Aug 2005 to 3rd May 2006) Today would be closing 2 days above it, if this were to continue, there is going to be a fair bit of strength. Looks like STI at 3000 is very possible now. There aren't many put warrants for the STI, if you want to take a short position, I guess there is only the SIMSCI, do remember to have a decent amount of margin if you want to short, this bull might punch thru many levels before giving up. If this were to continue, it will invalidate my current projection of 2880 to 2900.

Penny, Construction and IR stocks are all in play. I have exit most of my long positions and looking for things to play with J Suggestions are always welcome.

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