Mid Term Correction Idea for SG market
Mid Term trade idea for SGX:SGP1
Due to the weakening dollar ( DXY ) testing a very strong , and Singapore market being negatively correlated with the dollar...
If the USD bounces above its key long term support, it would then mean that Singapore market would be in a period of intermediate correction.
Alternatively, if the USD breaks below it's key long term support, we would see the big boys (banks, HFs, AMs ) move their money towards the cheaper assets across the EM countries. Holding USD denominated assets in the alternative scenario will erode the value of their portfolios.
Preferred Scenario - USD recovers and bounces above support, EM markets enter temporary correction
Short when SGX:SGP1 closes below 399.65.
Play the drop towards 378.00 for corrective wave A.
also currently finding support and testing neutral level at 50%
Correction is most likely over. Would watch for any further weakness and see if correction could push deeper due to fear or it would be time for a recovery.
Thanks for those that liked this. Have a good CNY!