I have decided to do a supplement not only to show the year-end status of the STI, but also because the latest wave count is now resolved to be a corrective and not impulse wave. This is labelled as Subwave b (brown). Today’s deep intraday low portends further decline in the new year to complete Subwave y (brown). As previously stated, the two potential lows of Subwave y correspond to the bottom of Subwave w (brown) at 3040.16 on 29 Aug 2019 and the bottom of Wave A (blue) at 2955.68 on 26 Oct 2018.
As can be seen from the chart the STI has been oscillating within the trading range between 2993.42 and 3415.18 in the year 2019 (shown by the blue lines). It looks like the best trading strategy would be to wait for Wave C (blue) to complete and then progressively investing as the STI climbs up. As this year’s trading range is up to +14%, we should be content to take just 10% profit on our stocks on the average. The strategy can be modified as the year progresses.