In my opinion, modest tapering in the preset of an improved economy is a positive step towards interest rates normalization. With the central bank persistence to hold interest rate to near zero(as long as unemployment exceeds 6.5%, inflation no higher than 2.5%), this will also reduces the uncertainty premium.
STI price action seems to have found its support and is currently trying to break its 10dma(3084.25). Macd showing a possible bullish crossover and RSI broke out from its oversold position. If 10dma is broken convincingly, a trend reversal will be confirmed, if not, more downside will be imminent. Be cautious.
Yesterday was the start of the santa clause rally phenomenon. It did happened accordingly to tradition afterall.
ReplyDeleteHi SGYI,
DeleteHope the current "santa claus rally" transits to a capricorn effect and not to a black swan. Wishing you a merry christmas and a happy new year!
Hi Hayden,
DeleteThanks! Merry Christmas and happy new year to you too! :)