No firework in China markets while US markets upward move continues

The previous week was relatively quiet due to the lack of significant macroeconomic data and the Thanksgiving Holiday, yet financial markets retained a positive trend.

The S&P 500 is nearing its July 23 high of 4,607. From a technical standpoint, we maintain an optimistic outlook, while closely monitoring any signs of weakness in the ongoing trend. Our technical target is set at 4,650 area, with support at 4,500.

Both the China and STI are currently operating within a downward channel. We are actively seeking signs of strength, such as a technical breakout from the trendline, before considering a more bullish stance on these markets.

Despite this, REITs sector in Hong Kong and Singapore appears attractive from an interest rate perspective. We are awaiting price pullbacks to identify entry opportunities.

Regarding tactical trading in the short term, we adopt a cautious approach but continues to seek LONG opportunities in the US markets. Concurrently, we are exercising selectivity in trading within the Hong Kong and Singapore markets.

Headlines for Week Ahead:

- Corp Earnings (PDD, Meituan)

- Tesla Cybertruck event

- US FED Chairman to speak and release of Beige Book report

- US PCE Report, ISM Mfg Report

- China PMI

- SG PMI

Disclaimers apply.

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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