Thoughts on Week Ahead: Week 8 Jan 2024

Thoughts on Week Ahead:
Week 8 Jan 2024

Hope you enjoyed the holidays and ready for the markets. Many investors would be interested what’s the markets ahead in 2024, so I’m sharing some interesting stats using Bard.

I asked Bard 2 questions. First, what is the year-end performance of S&P 500 if the first week of trading is down. Next, I’ve also asked what is the year-end performance for the Year of the Dragon.

The result is S&P 500 tend to see an average -6.8% return if first week ends negative. While, on a brighter note, year of Dragon experience an average real gain of +6.2% at the end of the year.

This proofs to be another year of staying adaptable to the investing environment and risk management.

Over the past week, markets mostly dipped after US FED minutes revealed reluctance to adjust rates lower as market has anticipated. Also, profit-taking ahead of the earnings season could have contributed to the selling.

Currently, support levels observed for S&P 500 is 4,650, STI at 3,150, while minor support level for HSI is at 16,500, and key support level at 16,500.

US Financial Sector is showing positive momentum. Thus, its components stocks would be our likely candidate for tactical trading.

We have nil set up for the week ahead and will alert when there is any. Wishing all a great trading and investing year ahead.

Headlines for Week Ahead:
- Corporate Earnings (US Financials)
- US CPI report
- China CPI report, Trade report

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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