Thoughts on Week Ahead 13 Feb 2023: Analysts Recommendation Revision, next market driver?

Thoughts on Week Ahead:

Week 13 Feb 23

Analysts Recommendation Revision, next market driver?

Market Recap

Markets experienced a volatile week, S&P500 -1.11%, HSI -2.17%, due to uncertainty surrounding US FED interest rate policy. Dollar Index +0.57% spiked, causing a sell-off in some markets. Despite the selloffs and news headlines, market expectations for Fed fund futures remained at 5.25% for 2023.

Outlook for the Week Ahead

Volatility is expected to persist, particularly in HK and China. Meanwhile, US and SG markets are likely to experience sideways trading. DBS' results on Monday could set the direction for STI.

Analysts could revise their target prices and ratings, following a year of downgrades, as China reopening is expected to have a ripple effect on more industries and markets.

Weekly Investment Strategy

We see recent market correction as an opportunity to pick up quality names in the market. As long as markets do not breach key support levels, we are using this sell-off as a buying opportunity.

Following is link to stocks' Year to date performance for SG,HK and US markets. Overall investors seems picking up tech, travel related and consumer discretionary sectors. Likely rational, valuations becomes more reasonable and China reopen theme.

https://docs.google.com/spreadsheets/d/1ND3f5ZZyph6O_tM9sTaT4hI8ukTpoqdu/edit?usp=sharing&ouid=101538497175344321065&rtpof=true&sd=true

Blog disclaimer applies

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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