Market entering uncharted territory

SO the People's Action Party (PAP) won by a landslide popular vote of just under 70 per cent. What might this mean for the stock market?

In our view, there may be a near-term bounce as traders try to capitalise on any "feel-good" sentiment from the victory. But since there is the not insignificant matter of a US Federal Open Market Committee (FOMC) meeting on Wednesday and Thursday, caution is likely to set in very quickly.

Moreover, the China market's volatility is as high as ever and there is no way of predicting when the next big plunge or push is coming. A localised bounce can be quickly wiped out by a collapse in Shanghai.