In some of my previous posts, I have shared how I have emptied my SG stock portfolio. Other than DBS going up, everything else was not so much of a waste. In fact, it was good that I left SG market and venture into a new market. The only sad thing is probably China market but it is ok. Because I am confident about China's future.
So currently, I have a reasonable amount in my US portfolio, China portfolio, and cryptocurrencies. I am not planning to add any more fresh funds into these 3 portfolios this year. So what am I gonna do with my small little bank account that is building up monthly? Here is the plan.
I am planning to buy the dip for SG market if there is ever a huge pullback. I repeat, it will need to be huge! Or like what Trump always says "Bigly". At the time of writing, STI is still sitting strong and flirting with the resistance of 3, 000 points. It doesn't seem to be able to go back to 3, 200 points anytime soon but also don't seem to be finding 2, 800 points soon.
In March 2020, the worst was around 2, 200 level and then the rest are pretty much history. I doubt we will see the 2, 200 level unless there is another doomsday situation. I believe that even if China Evergrande really screwed everybody up, we will likely see 2, 900 level. Thereafter the ripple effect will bring us to around 2, 700 levels. I know I sound a bit optimistic but I believed this won't be as big as Lehman Brother. The key here is more on how will China Authority react?
Should China Evergrande situation really goes south, Covid-19 causes more lockdown around the world and more natural disasters happen concurrently, then I think we will see 2, 200 level again. To go lower than that will likely require at least 1 or 2 big boys in the US to go down.
Thus, my first level to watch SG market will be when STI fails to secure 3, 000 level and stay below it for a while. Thereafter, at 2, 950 will be the level where I will start to select a few stocks and set my target price. From there, it will be a time to slowly monitor and enter in batches.
So what if there is no crash and the market goes up?
Then good job and I will continue to do what I am doing for US and China. The only downside will be my little bank account will be taking the pathetic interest and do nothing much. Oh well.
What to watch in SG market?
This type doesn't need to ask. In SG it is common sense to buy banks during the dip. It works for me several times already.