Is this time different for the Straits Times Index?


  1. When is this correction going to find a bottom (even if it is temporary)?
  2. When is that retracement (green) going to come?
  3. Is a retracement going to come at all?
  4. Is this crisis so bad the index is going straight down?
  5. Is this crisis worse than the previous three?

Highlighted in this chart of Straits Times Index going back to 1995 are 3 previous crises: Asian Financial Crisis, Tech Bubble and Subprime Crisis. Orange = crash. Green = retrace.

Straits Times Index 1995-2015

Straits Times Index 1995-2015; STI is now where the previous Subprime Crisis found its first support


I find it important to study the past to find clues to the future. In addition, one must not be overly bullish or bearish because if there is one thing that never changes in the stock market, this is it – the highest chance for a sudden reversal or short squeeze to come is when one is most bearish – trading psychology 101.


market psychology

And that’s how you make money from both sides


Some previous posts on this topic:

  1. Can past give Singapore stock investors lesson or two on STI?
  2. I am calling a bottom (temporary) on Straits Times Index STI
  3. 2832.64 an ominous close for Straits Times Index
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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