STI ETF

 

Indeed a good bounced off from below RSI 30 below 2500 level. 

Let's see how she fare for the coming week!

Likely to see further upwards movement if it can breakout the recent high!

Pls dyodd.

She is trending lowered and lowered has to be careful!

I think IS ok to stay sideline and monitor till market direction is clearer!

Pls dyodd.

Chart wise, rather bearish!
Likely to continue to trend lower and perhaps it may go below RSI 30..

I think IS good to be patient and wait for this moment to come!

Pls dyodd.

Looks like the price is trading near RSI 30 might be a good opportunity for those that are waiting for the boat to come back.

This method of operation is to buy into STI ETF whenever it is in an oversold condition
 and to sell off and take profits whenever it is in an overbought condition. 

For example, one may use the  indicator such as the Relative Strength Index (RSI) to gauge when it is overbought ( above 70 ) or oversold condition( below 30).


One may plan to buy and selling of units in several batches whenever in oversold or overbought conditions in order to get the best average price.


For example you may plan to buy in at different interval or whenever the Oversold situation happen .


In any one year, there will be three to four such window opportunities of overbought or oversold conditions to operate by buying or selling units of the ETF. At the same time, we can also kept some units always to receive dividend income and for their long term growth in price appreciation.

With discipline and patience , one should be able to get good average returns per year in excess of certain % by this one simple strategy of investing in one single ETF .I think This simple one strategy is safe and allow one to sleep soundly at night without worry of negative news affecting individual stocks in one's portfolio which could crash the share price of the particular stock the next day. This is because even if one or two of the component stocks in STI ETF of blue chips should collapse in share prices, there will be 28 others to diversify away the risk of the entire portfolio collapsing at anytime.


As for younger folks who just started out working and does not have enough cashflows and savings , one may start to spread out the different batch of buying or applying the Dollar-cost-averaging method by investing $1000 at 6-8 different batches that would be able to achieve  lower average costs per unit. 

the example are as follows:-

1. When the index price is $2.00, your $1000 will be able to buy 500 shares.
2. When the index price is $2.50, your $1000 will be able to buy 400 shares
3. When the index price is $2.90, your $1000 will be able to buy 344 shares
4. When the index price is $1.66, your $1000 will be able to buy 625 shares

5. When the index price is $3.00, your $1000 will be able to buy 333 shares
6. When the index price is $3.20, your $1000 will be able to buy 312 shares
7. When the index price is $3.50, your $1000 will be able to buy 285 shares

Total = $7000 / 2799 shares = $ 2.50 average cost per unit.

By using this method, you will be able to make a profit once the stock market rises above this low average price.

RSP :

Just sharing.


Not a call to buy or sell.

Pls dyodd.