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STI to cross 3000 boosted by long-term investors

now you know how STUPID you are if you were to sell your stocks on 17th Aug where there is IRRATIONAL PESSIMISM

17-Aug-2007 16:03	Straits Times Index   /   STI to cross 3000 boosted by long-term investors
x 0 x 0	if you are holding some good stocks and have holding power, and sell low just now, you are really STUPID :) ...still the same advise for some in this uncertain market...good luck

 

Tonight and tomorrow night may have some turmoils as some economic data going to be announced.

If you have holding power and deep pocket, contra at your own risk.

August 23, 2007 Initial Claims

August 23, 2007 Leading Indicators

August 24, 2007 Durable Orders

August 24, 2007 New Home Sales

 

It is going to hurt.....if everyone believe in it when cut don't happen.

"Investors are hell-bent to believe they're going to cut interest rate and they're trading like it's already happened."

 

The bullishness is caused by the thoughts that Fed will cut rate.

However, if the bullishness continue, Fed has no reason to cut its rate.

When hope becomes disappointment, the market will correct itself again, thus may again ripple to global market.

Hence, piece of advise... don't ever think that its clear sky ahead.

Remain skeptic and alert.

 

repeats my words yesterday...good luck

Posted: 22-Aug-2007 16:44
x 0 x 0 * Alert Admin	Surprisingly, the market choose to move up in the next three months (August, September and till 8th/15th October to be confirmed the exact date in october)....while there will be some consolidation on the way, it will be "higher up" rather than "lower low" at least till 8th/15th October ...i would advise to buy in the rebound for the next two months...good luck and it is good to know that certainty is back to the market
Rate

 

The Fed rate cut? Don't bank on it. (A note to ponder on...hehe !!)

FED funds rate is the more important rate since it affects many consumer loans.

A number of economists believe that the Fed will hold rates steady next month.

"The Fed would like to do everything possible under the sun but make a cut in the fed funds rate," said Bernard Baumohl, an economist and author of the textbook "The Secrets of Economic Indicators."

The Fed had raised rates 17 times over two years to get the fed funds rate to 5.25 percent in an effort to keep the economy from overheating and letting prices get out of hand.

But the easy credit available during the 15 months that the funds rate stood at only 1 percent helped spark a housing boom and rapid growth in risky mortgage products.

A host of economic readings are due between now and Sept. 18, including the August jobs report, a survey of manufacturing executives, sales by major retail chains and a nos of key inflation readings.

Before the Fed will move to cut rates, it will need to see some new signs of weakness in consumer spending or employment. He does not believe the turmoil in the credit markets alone will be enough to convince Fed Chairman Ben Bernanke and other Fed governors to cut rates.

"He very much believes the main job of the Fed is to control prices and inflationary expectations," said Baumohl "He wants to be viewed as a chairman vigilant in not letting prices get out of control. It all depends on what economic indicators point to from this point on. Assuming nothing else changes, I do not see the Fed cutting rates, even on the 18th."

Still, some economists believe the turmoil in the credit markets poses a severe enough threat to the economy that the Fed could move to cut rates even without further signs of economic weakness. But even some economists with that view concede the Fed would prefer to stay put.

"I think Bernanke still feels this is a financial markets issue, this is not an issue for the overall economy, and that financial market illiquidity should be addressed by opening the discount rate liquidity window, not with by cutting the fed funds rate," said David Wyss, chief economist with Standard & Poor's.

"Even if he's right, and this is a microeconomic issue and not a macroeconomic issue, I think the Fed is better served being out ahead of the problem than waiting for it to occur," said Wyss.

Several economists said there are big risks for the economy, and for the financial markets, if the Fed blindly follows market expectations and cuts rates despite fresh signs of economic strength. One problem could be a continued slide in the value of the dollar, which could spark inflation by making some imports more expensive. It also could lead to a sell-off in the Treasury bond market on expectations of a jump in inflation.

"If the Fed does cut, it will be inviting serious inflation pressure that could send the long-bond yield skyward," said Rich Yamarone, director of economic research at Argus Research. "That could cause serious problems for mortgage rates, that would trigger the resets [of adjustable-rate mortgages], and then you've got the calamity you're looking for."

Art Hogan, the chief market strategist for Jefferies & Co., said he's worried that the stocks will sell off if they don't get the rate cut investors are now expecting. "I think the market is making what may turn out to be an irrational assumption, that the Fed has decided to do something they haven't been inclined to do yet," said Hogan. "Investors are hell-bent to believe they're going to cut and they're trading like it's already happened."

Wyss and the other economists said that if the Fed is leaning toward leaving rates unchanged, Bernanke and other Fed policymakers have plenty of time to signal to the markets that there is no rate cut in the works.

"This opinion [of a rate cut in the works] can change on a dime, and it will," said Wyss. "Two weeks ago the markets were convinced the Fed wouldn't move until March. It can change back just as quickly. The lesson from the problems we saw under [1970's Fed chairman Arthur] Burns is you want the markets to know ahead of time.

But Hogan and others said there there is likely to be another sell-off in stocks if and when investors become convinced they aren't getting a hike.

"Back in March 2006, the market became convinced the Fed was done raising rates when it reached 5 percent. Got ugly when they realized they were going to 5.25 at the next meeting. We could see that again." 

 

That's very good sign & promising too....but something might be fishy...looks too good to be true...

 

The STI and Dow "cheonged" fiercely for 2 days already...

The Dow chart shows some good signs of strength in a sinister market...

Shanghai soared in spite of a rate cut!

The picture certainly looks far from bearish but rather promising...

 

Fed rate cut? Don't bank on it 2:11pm:  Investors betting a Fed rate cut is a lock could end up getting badly burned. (more) ? Survey: Most economists expect a cut Stocks pop on mergers, Fed bets 5:37pm: Major gauges rise on a wave of potential acquisitions and bets that the central bank will cut rates next month; bond prices slip. (more) ? Bonds lower on stock strength ? Check futures Subprime job woes to spread 5:15pm: Mortgage lenders are slashing payrolls, and labor problems will spread, warn economists. (more)

DOW +145.27 13,236.13 +1.11%

NASDAQ +31.50 2,552.80 +1.25%

S & P 500 +16.95

 

I sold off my shares at a higher price. It is certainly better to get at a lower price then wait for higher volume and I find myself getting at the share price where I sold off. This applies to stock which I feel have long term potential.

 

Grab some "cherries" but not all just in case things go wrong you still have spare "bullets"  

 

i do agreed with u on this..... hope US can close with confidance tonite.... then maybe we can see more action in STI the next day....

 

Great recovery today by STI. But take note that the volumes are really really low today. So we're not out of the woods yet.

 

Just watch some of the good China and oil related stocks

 

Newmoon... :)

Thou art truly an enlightened one...

Please accept my homage online...

 

Any thing is possible in a globalised world -the good and the bad.

Subprime can bring about a market rout worldwide.

If China allows a fraction of it's funds to be invested in Singapore the STI will reach 4000 in a couple of days-I am sure there will be a shortage of shares even in jade technologies.

Form is truly emptiness and emptiness is form.

The use of a cup is in it's emptiness .The use of this thread of this forum which I am typing on is a blank space.


Non self does not mean no self-It means there is no permanent self as every aspect of self(form and mind are impermanent.)

Thich Nhat Hanh( philosopher, poet ,monk) likens non self to interdependence as opposed to selfishness.

He uses the term -WE INTER ARE.

This forum is hardly the place to discuss spiritual concepts. 

 




 

 

STI ended like a real roller coaster..on a very volatile today. Yesterday was up down >90+ points

 Straits Times Index    Last:3321.5   Vol:0k    +92.84

 

A billion billion years is a but a nanosecond to the unthinkably large...

 

Hi Victorf ! Thanks for sharing and noted ! Good on U mate !

 

Emptiness is form and form is emptiness.....

From a no-self

 

It's an 'unreal' world! ...