Weekly Market Outlook

Thoughts on the Week Ahead:
Week of July 22, 2024

TSMC’s revenue increased by 40% year-over-year, yet its stock price declined by 3.55% for the day. Similarly, Netflix Inc. saw a 17% revenue increase but experienced a 1.51% stock price drop.

Several factors could be contributing to the market’s volatility. These include valuations in the tech sector, interest rate expectations, and the potential impact of a Donald Trump re-election on taxes.

We anticipate similar market behaviour this week as other tech giants release their earnings reports. There are currently no significant technical patterns suggesting a market reversal. Therefore, we will monitor sell-offs and wait for price stabilization before entering trades.

Despite a recovery in the China A50 index, Hong Kong markets have not followed suit. Investor enthusiasm for Chinese markets remains subdued. The upcoming earnings season may offer more clarity on the equity market's direction.

The Singapore market has weakened, and the index is currently mixed, reflecting global equity market trends and export challenges.

We maintain a cautious outlook for the week ahead. No trading opportunities have been identified at this time and we will provide updates as conditions change.

Headlines for the week:
- US Corp Earnings (MSFT, GOOGL, TSLA, V, UPS, GM, IBM, F, SBUX, XOM)
- US Adv 2Q24 GDP, PCE report, PMI
- China LPR fixing, PMI
- SG Jun CPI, Ind Prod, MAS Policy

Disclaimers apply

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI), annual performance during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...

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...

Mastercard Inc (MA): Mark Up Could Continue

Mastercard Inc (MA): Mark Up Could Continue US$526.60 The rally that led to the $531 resistance in October likely marked a buying climax, where significant demand pushed prices higher. This was followed by a consolidation, as selling pressure from short-term traders met sustained buying from investors. This behavior indicates potential reaccumulation process. Noticeable spikes in volume accompany upward moves in recent trading suggest weakening selling pressure and increase in demand. Technical indicator, stochastic turning with relative strength and Fund Flow Index trading above zero supports the notion that price continue its mark up from here. First Technical Target is at US$557.00, while Trailing stop is set below 48Days Simple Moving Average. Disclaimers apply

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