STI broke 3000 and Time to Take Profit

The writing is all over the place or rather all over the media - in the newspaper, on the radio and the TV. All the "analysts" said the momentum will carry the STI higher.

First, let me apologize for not posting to this blog for over a year. Well, expended all my bullets when the market was moving side way. So I could only stay sideline and watch STI broke new high.

When STI reached 2500, it was the first level to celebrate. Because, that's the time to take profit and wait fot the market to "correct". That happened during the 3rd quarter of 2006. In fact, I was speculating that the STI will go higher with increase volume and more retail investors coming into the market. I actually register the domain name, Singapore Stock Trading.com

Now, STI is now above 3,000, it is the time to take profit, take a break, go on a vacation and wait for the actions to unfold. Let it correct before going for 3,600.

If you are uncomfortable to sell your stock holding now, you may consider to take this strategy. Sell your stock, take profit and use some of the profit to long SiMSCI futures.

Yes, I realize that it would be more "fun" using some of your profit in your stock trading to speculate in the index futures. However, to do this you need to day trade and monitor the market every day.