Market Technician

  China Digital Healthcare: Sector breakout, uptrend to continue . Stop loss below respective support (red lines above). Through cost-cutting measures and operational improvements, these healthcare operators have managed to either significantly narrow their losses or turn a profit for the first time in their most recent reporting. PA Good Doctor (1833:HK) Ali Health (241:HK) JD Health (6618:HK) Blog Disclaimers apply.

German Chancellor Olaf Scholz recently declared that Deutsche Bank is "very profitable," causing markets to pare losses and close in the green on Friday. Amid the recent banking crisis, the market trend continues to exhibit short-to-medium term upward momentum. However, as we enter the second half of 2023 (2H23), investors should exercise caution due to potential interest rate cuts. Market Trend Amid Banking Crisis Despite the ongoing banking crisis, the market trend remains on a short-to-medium term uptrend . This is evident from the swift recovery of the markets following Chancellor Scholz's positive statement about Deutsche Bank. The overall market sentiment appears to be cautiously optimistic, buoyed by the robust performance of key players such as Deutsche Bank. S&P 500 Range Bound Trading and the End of 1Q23 As we approach the end of the first quarter of 2023 (1Q23), the S&P 500 continues to experience range-bound trading. Market participants should keep ...

  SIA (C6L): At technical support, expecting rebound  Price is trading at support-turned-resistance S$5.60 level.  Price holding above this level could see SIA trading higher technically towards S$6.06, with next target at S$6.86. Blog disclaimers apply

  Thoughts on Week Ahead: Week 20 Mar 2023 The US Federal Reserve recently injected liquidity into the financial system in an effort to stabilize the banking sector, and market is expecting a 25bps rate hike from the FOMC this Wednesday. Meanwhile, the technology and semiconductor sectors have continued to outperform, while Chinese banks have been quietly rising due to government efforts to boost economic growth. Investors are diversifying into gold , which has risen 5.96% as the market prices in a potential peak in the interest rate cycle and a resulting softening of the USD. In the travel industry, stocks within the theme are experiencing more price stability and demand as countries prepare for an expected increase in Chinese arrivals in the coming quarters. For example, Beijing Capital International Airport (694), which we shared, recently reached our target price. Overall, while there are some positive trends in the market, it's important to consider potential risks and op...

SVB fall out has prompted investors to consider the effects of high interest rates. We are keeping a close eye on buyout or any bailout. • List of tech companies exposed to SVB , https://www.tipranks.com/news/silicon-valley-bank-the-aftermath-of-the-closure-and-impacted-companies • In response to the current market conditions, many investors diversifying into safe haven assets such as Gold and Treasury Bonds. • Since SVB incident, outlook for interest rates has softened somewhat, 2yrs treasury fall sharply on Friday. • SVB fall out likely to be contained within specific industries. Larger banks C, BAC, and WFC are oversold, technical hidden buying observed. • We are monitoring the potential effects on various asset classes, as well as the US dollar and the Chinese renminbi after recent Iran-Saudi peace deal. Headlines for Week Ahead: SVB fallout development, US CPI, China Retail Sales and Industrial Productions, SG NODX, Corp Earnings (ADBE, Ping An Insurance, Pinduoduo) Gold ET...

  Sign of Strength Beijing Cap Intl Airport (694:HK): Expecting price to trade towards its HK$6.40 range resistance or potentially higher if range breakout observed. Stop below HK$5.80. Blog Disclaimers apply

While higher rates may have negative impacts on equity portfolios in the long run, such as economic weakness or investors moving away from equities, I do not see this affecting the stock market yet.  The markets are still receiving substantial support from t he large amount of liquidity   generated by  US central bank  during the pandemic , and we are currently only -12% off from the peak stimulus provided by the US Federal Reserve. Last week, global markets including S&P 500, HSI, and China A50 bounced off the forecasted 38.2% retracement level. The markets are still showing a bias towards the upside, but I like to also warn against potential short-term volatility. Moving Forward, my portfolio strategy continues to focus on adding stocks and seeking out short-term trading opportunities during market weaknesses. Disclaimers apply