Weekly Markets Outlook

Week 22 April 2024

Be mindful of potential market volatility next week as several US mega-cap companies are announcing earnings.

Risk-off sentiment continues to weigh on US stocks as hopes for interest rate cuts fade. However, it's worth noting that US financials remained resilient during the sell-off due as the banks benefit from high-interest margins.

Interestingly, US listed Chinese tech companies were largely unaffected during Friday’s tech sell-off, which could indicate supply exhaustion and potential trade or allocation opportunities.

Heads up for the Singapore market next week as market will due to soften in view of DBS going ex-bonus on Monday.

This week, constrained retaliation actions by countries in the Middle East provide some level of relieve for investors and global citizens.

Nil trade set-up for the week ahead but will update when we identify any.

Headlines for the week:
- US Corp Earnings (Alphabet, Amazon, Microsoft, Meta, Visa, Tesla, GE, UPS, Lockheed Martin, Qualcomm, IBM, Caterpillar, Spotify)
- SG Corp Earnings (REITs, Keppel, Capitalnvest)
- US PMI, PCE, 1Q24 GDP
- China LPR fixing
- SG Mar CPI, Ind Prod

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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