If you’ve been following my blog, earlier last week, I wrote an article analysing Singapore’s stock market – the Straits Times Index.

As analysed and predicted, STI has been continuously dropping for two days. Today, the index stumbled 121.09 points (3.70%) to a 5 month low.  (Refer to graph below)

I’m not confident that the market will turn better tomorrow; Not at all confident about it.

The wall street markets are open already.. Asian markets will still be affected if wall street (Nasdaq) don’t perform today. We’ll have to see how US markets do. As of now, NASDAQ already dropped 25.33 points. Hopefully by afternoon we’ll see it rebound.

I believe the markets will still be bad until end of August. Time to queue and sell your stocks – that’s my advise. Take a good rest and come back soon.

I am in the stock markets and have been trying to understand it for a few years. I think I failed to. It’s totally impossible for me to predict what happens the next day, so it’s impossible to tell if the stock market earn you money. It’s luck.

Take a look at the 2-year graph of Straits Times Index (STI). (above)

Noticed the gradient of the graph? There are ups and downs but still, Singapore’s markets has been doing quite well. Ofcourse there are people who lost money too and there are people who became rich in a few months.

When I was trying to analyse alittle, I downloaded the 2-year graph for SESDAQ (Second board). The second board has done very well too. Note that the index rose by 3 times?

For those who earnt money, it’s time to sell off your stocks soon. For those who didn’t, take a good rest first and reserve your money till later part.

Looking at the graph, the rise is slowing down and is starting to fall. I’m doing a prediction that the market will crash sometime soon. Maybe not a huge crash, but alittle adjustment to the indexes. Be prepared. Just like playing with fire, don’t get your own fingers burnt. And remember, don’t be greedy.

I wonder if I should start to give weekly tips on counters worth (short-term) investing. Suggestions/comments please. (Note that I’m still studying and this can only be my hobby, not my job!)

Statistics courtesy of Yahoo! Finance.