19th June is the start of Phase 2 of the Circuit Breaker in Singapore. It means more relaxation of restrictions. Most shops are re-opened and dining is allowed in restaurants.
DOW fell after a good start of trading day.
Volumes are relatively higher than the last 3 months. It has been observed that the rise of the stocks are made by new day traders that uses CFD to push it higher.
There is a concern that the music may stop any time soon due to the surge in Covid virus numbers.
How does it affect Singapore?
Looking at the overlay of STI and DOW, it shows tight collation in the first 3 months but a strengthening DOW after the crash. The direction of the two indexes are similar despite DOW has a better performance in terms of recover.
It is interesting to observe the run of the stock during the first half of the June. On the second half, it appears to be giving back its gain.
DOW fell after a good start of trading day.
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| 6 months DOW Stock Chart |
There is a concern that the music may stop any time soon due to the surge in Covid virus numbers.
How does it affect Singapore?
Looking at the overlay of STI and DOW, it shows tight collation in the first 3 months but a strengthening DOW after the crash. The direction of the two indexes are similar despite DOW has a better performance in terms of recover.
STI has a sell down on Friday at the close. It is believed that funds are selling off.
We will know more when we see the report on Monday.
DBS is one of the loved stocks in STI.
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| DBS June Hourly stock chart |
It is interesting to observe the run of the stock during the first half of the June. On the second half, it appears to be giving back its gain.
Optimism in opening up the economy turns into concerns with more infections globally.
The big question if the stock will return back to the lows of April.
After drawing a couple of lines and changing to candle sticks, it shows the support levels is towards 20. If it breaks, it will be bad.
We shall see if this week lines of support will hold.
Looking at the past 5 days and comparing with UOB. UOB is typically above DBS. This week shows the divergence . There is a couple of attempts where DBS fallen towards the UOB value. I think this will likely to happen this week again. Looks like UOB is struggling to overtake DBS. It is rather DBS weakness that UOB needs to be of a larger value again.
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