Correction For STI Next Week

This coming week seems to be a slight correction week, although unlikely to be a major correction as that in January when STI corrected by 8.6%. It could offer buying opportunities for investors who have missed out the recent bull run. A sufficient pullback would offer the market and its inidividual stocks the potential to grow. I would however advise caution and shorter term investing as the year of 2010 would be marred by pullbacks and uncertainty.

I would include commodity stocks and shipping in my portfolio that are closely correlated with the global economic growth. However, this is based on the assumption that global economies do not experience any double dip or any stagnation in growth. At least for Singapore, this seems unlikely with the projected GDP growth of 7%-9%. How global economies is going to tighten their monetary policies would also be an interesting topic to look out for.

Picks next week could include Nobel at around 3.00, NOL at 1,93 would be a tempting buy. Never to also forget diversification of the portfolio and minimize the risk that any individual stock could bring.

Further Outlook for Genting

Technically speaking,
-Bollinger band is narrowing, indicating a possible price movement at either side of the bollinger band.
-MACd turned bullish from a rebound.
-RSI turning up---bullish
-Most importantly, today's trade at $0.895-0.92 has initiated a breakout from its downtrend channel, and that is possibly the most bullish chart pattern. We will are likely to see Genting retest the $0.975 level in the next few trading sessions.

Other news to watch out for is the possibility of another fund raising exercise by the company. It is unsure in what form it would take place, if the resolution is successfully passed at the next AGM. In the event that it is another rights issue, then it could have a negative influence on the price through share dilution.