Analysis on china and singapore market

HONG KONG - China's finance ministry late on Tuesday announced the tripling of securities stamp tax to curb the country's soaring stock markets. From business-times.com.sg

The chinese govt is taking steps to cool off the heated stock market in china. Nevertheless, the singapore market luckily did not respond too negatively to this news,only decrease of 15 pts to close at 3511 pts (STI May 30th 2007)

If any of my students can remember, it is best one only enter when you see a clear direction of the market. Meaning you can only make money SAFELY from the stock market if it goes up or down. From how things are going, it has been horizontally trading for some time. Hence whether you short sell or buy low to sell high, it is both extremely risky as a clear direction of the market has yet to been seen. Thus it can go either ways. Entering now hence will be more like gambling rather than investing.

I suggest everyone to first observe the market first, yet still continue to do your company analysis. And once the market shows a clear direction, then you enter buying these companies that you have been analysing for the past months.