Weekly Market Outlook

Thoughts on Week Ahead:

Week 29 April 2024

Google entered the prestigious 2T club on Friday following its earnings announcement, contributing to the momentum of the stock market rally. The exclusive group of companies valued at over $2 trillion now includes Apple, Microsoft, Google, and Nvidia. A lighthearted suggestion for this elite group could be the "Fantastic 4," and perhaps humorously dubbed "MANGO" if Oracle could join the ranks.

From a technical standpoint, the S&P 500 found support at the 4,950 level, indicating expectations for the index to trade within a range of 4,950 to 5,260.

The upcoming US Federal Open Market Committee (FOMC) announcement next week garners significant attention, particularly regarding adjustments to inflation forecasts and the outlook for 2024 rate cuts.

A notable development from the past week was the Hang Seng Index (HSI) and China A50 breaking above their respective medium-term downtrend resistance, suggesting a potential bottom for both indices. This could prompt investors to consider adding exposure to the China market in their core portfolios and engaging in more tactical trades within the Greater China markets.

DBS Group (D05) is set to announce earnings on Thursday, which could influence directional movements for Singapore banks and the Straits Times Index.

Headlines for the week:

- US Corp Earnings (Amazon, Eli Lilly, Coca-Cola, McDonald's, Mastercard, Qualcomm, Apple and Booking)

- SG Corp Earnings (DBS, REITs, Wilmar)

- US FED FOMC, Jobs Report

- China PMI, Labour day holiday

- SG PMI, retail Sales, Labour Day

Disclaimers apply

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

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...

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...

Market Technician

Search This Blog