SINGAPORE STOCK MARKET NEWS – HISTORICAL PATTERNS

I was looking at my trading diary last year to see what happened in the month of august in 2005. Well, I noted down then that the market has been moving up in july and peaked in the first week of august right before or right after companies reporting results. Even for those who reported good earnings, a rather sharp correction for the broad market followed after results season is over.

Interetingly, in Aug2004, market also moved up in last 2 weeks of july and hit a short term high in 1st week of aug and corrected for 1-2 weeks.

Over the past 1 week, market has been trending up again, in anticipation of good results for certain stocks. This is a similar pattern to the july upward movements in the past two years. It would be interesting for us to see if this year’s pattern will be similar to last 2 years.

One point to take note though is that, this year there will be more investor events right after results season compared to last year. These events may generate continuous interests and provide some support to the market. There will be DBS, DMG, Citigroup and JP morgan conferences sometime from 15-23rd August.

Nonetheless, I would still set my exit point and monitor the individual stock movement closely.