STI Updates

The following is a wave count (more bullish view) which has been at the back of my head for quite a while.

A wave 1 extension will go in the following pattern:

It appears that the A wave of Primary B is nearing to an end (not the C wave as commonly counted, and as counted earlier in this blog). This means that Primary B might not be ending any time soon.

The reason is because the correction in June retraced about 23.6% of the rally from March to June, and this is a little too shallow to be a wave B. On the other hand, it retraced about 61.8% of the extended 5th wave of the first wave. Hence, I lean towards the count at the top of this post as of now.

My only puzzle left for this count is whether the 4th wave has ended on 19th Aug 09 in a simple zig-zag, or 29th Oct 09 in an ascending triangle, or whether we are still trapped within wave 4. Reason being, we can view that STI as being in a rising channel since 19th Aug 09. These 3 wave options will be in head as STI unravels more waves.


However, with this count, the conclusion is the same. Any of the 3 possible wave options tells that STI is likely to have one last impulse wave upwards (which must be shorter than wave 3), before a major downturn.

Turning to candlesticks, STI closed with a gravestone doji (almost) at the 50 MA on the daily chart. It seems bearish bias here. With USA having dropped so much on Friday, tomorrow might open up extremely red.

The first line of defence on my chart's triangle (or up channel) for STI is 2607 region. We will have to see how it goes after that.


My strategy:
Ride out the volatility, and wait to accumulate more of Starhub at a lower price for investments. Meanwhile, I might raise CFD shorts or try warrants again (PW this time) to hedge against my long positions when the eventual downturn (which everyone is waiting for) comes.