Week Ahead & US SEC Opens Door to Bitcoin ETFs: What Investors Need to Know

US SEC Opens Door to Bitcoin ETFs: What Investors Need to Know

This week marked a significant milestone as the US SEC granted approval for the groundbreaking listing of spot Bitcoin ETFs, opening doors for investors to conveniently engage with cryptocurrency and potentially introducing a new asset class into their portfolios. Despite a -2.51% dip in BTC for the week, likely influenced by profit-taking, ETH surged by +14.60%, with enthusiasts confidently declaring, 'We are next!'

Our proprietary correlation model depicts BTC as a hybrid risk-on instrument, combining characteristics of both equities and commodities:

Equities (SPY): 0.82

Gold: 0.49

Oil: 0.42

Dollar (DXY): -0.13

Bond (TLT): -0.23

While long-term bullish momentum endures for US markets (SPY), we approach the short term with caution. The upcoming earnings season has heightened investor expectations, and markets are nearing technical resistance levels.

In the Singapore market, consolidation persists, while China's markets remain in a downward trend. We are actively seeking selective swing trades during price corrections, navigating these market conditions with more caution.

Headlines for Week Ahead:

- US Corp Earnings (US banks)

- US Dec Retail Sales

- China 4Q23 GDP

- SG Dec NODX

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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