Skip to main content

Major asset classes trading at technical support

 





Thoughts on Week Ahead:
Week 9 Oct 2023

The past week has been quite a turbulent ride in the stock market, as it grappled with mixed signals from economic data concerning the outlook for interest rates.

Investors are closely monitoring the current earnings reports to discern whether the robust economy can withstand a high-interest-rate environment. Positive earnings surprises could potentially aid in the market's recovery following a recent correction.

Aside from corporate earnings, investors are also keenly interested in the release of the US FOMC minutes, the US CPI report, China's trade figures, and Singapore's GDP data.

From a technical perspective, major asset classes like Gold, Oil, NASDAQ, and the S&P 500 have all reached their respective support levels, with minor support for the latter. We anticipate that bargain hunting will pick up steam, potentially leading to at least a short-term upward movement in the week ahead. Nevertheless, we remain cautious and watchful for any signs of increased supply entering the market.

For tactical trades, we aim to long technology stocks that have been beaten by recent interest rate pressure for the week ahead.

Headlines for Week Ahead:
US Corp Earnings (Financials, Fri)
US Birkenstock IPO (Litmus test on investor sentiment)
US FOMC Minutes
US Sept CPI Report
China Trade, CPI Report
SG 3Q23 GDP

Disclaimers apply

Most Popular

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
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Week Ahead: Trump Trade and the Resilient US Economy

  Week Ahead, 9 Dec 2024 Macro News: U.S. markets continued their record-breaking streak this week following a reassuring speech by U.S. Federal Reserve Chair Jerome Powell, highlighting Fed's cautious yet comfortable stance on rate cuts. Beneficiaries of the "Trump Trade" also saw significant gains, with Tesla Inc. rising by +12.77% and Bitcoin up +2.24% for the week. The U.S. technology sector, represented by the QQQ ETF, also performed strongly, boosted by Friday's jobs report, which indicated a resilient economy. Meanwhile, the Hang Seng Index (2800 ETF) experienced a technical turnaround, gaining +2.28% this week. The rally was fuelled by speculation that Beijing might introduce additional lending and mortgage rate cuts to stimulate the economy. Medium Term: • S&P 500 (SPX): Index remains above the 6,000 level and could trend towards the 6,180 zone. • Straits Times Index (STI): STI reversed near our 3,860 resistance zone. We are neutral and is looking out for...
Read more