Weekly Updates 1/4/24 – 5/4/24 April 1, 2024
This weekly update is designed to help you stay informed and relate economic and company earnings to potentially value-add your CFD (Contract For Difference) trading via hedging (risk reducing). This article should be used for educational purposes only and not as financial advice. We urge all traders to carry out your own due diligence before submitting trades.
Recap for last week (25 Mar 2024 – 29 Mar 2024)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week’s market movement revolved around Japanese yen falling to its weakest level against the US dollar since 1990, despite Japan bringing interest rates up from their sub-zero spot where investors flooded towards the US sending Dollar index up by 0.26%. Wall Street traders sent the S&P 500 to its 22nd record high this year with a $4 trillion surge in US equity values in just 3 recent months. Last Friday’s US PCE YoY data was at 2.8% which is in line with Fed’s expectations where Fed is waiting for solid evidence that the inflation is under control before lowering the rates. Many investors are betting the Fed to make the first cut earliest by June. Bitcoin traded above $70,000 last week where it jumped almost 70% this year with consistently strong demand from US ETF holding the tokens.
Updates for the week (01 Apr 2024 – 05 Apr 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
Since rising paycheck is a key driver for inflation, investors are also wage gains where the combination of labour market data points might hint a direction towards a healthy balance of sturdy economic growth and softening price rises. In the US job market where the economists are predicting that US economy is adding about 200k new jobs in March down from February’s 275k while the unemployment rate in Feb held steady at 3.9%. In other words, they are expecting the labour market to have cooled down a little. On top of that, Jerome Powell is expected to give comments on US economy outlook at early morning (00:10) on Thursday 4th April. Market participants should take note as Powell’s comments are closely followed and can induce volatility.
This week’s corporate earnings focuses on major China companies such as KweiChow Moutai, BOE Tech and China Merchants Ex. As this is the first week of the new quarter, not much US and Singapore companies are releasing earnings. Investors and Traders should pay close attention to China company’s forward guidance as China’s consumption pays a big role in global demand.
If you hold equity positions in these stocks, you can hedge your positions using CFDs to mitigate the risk of disappointing earnings releases.
For those looking to speculate or capitalize on the increased volatility, CFDs provide leverage and ease of going long and short across a broad range of products available.
DBS Group Holdings limited: Resistance Level – by Alex Lee
Key Entry Price Pivot(s)
- $36.43
Recommended Trade
- Short at $36.13
- Stop Loss at $36.63
- Take Profit 1: $34
Alternative Case
- Long at $36.50
- Stop Loss at $35.50
- Take Profit at $37.50
Remarks
- DBS is testing the resistance of $36.40 and is now showing signs of rejection.
- If DBS is unable to have a strong close above $36.40, recommended trade suggests shorting on the rejection of the resistance.
- Alternative case to long is presented in the event that there is no false breakout of resistance and price is able to close above the resistance. First target profit is $37.50 at the high while a trailing stop can be implemented for the remaining positions.
If you have any feedback or questions, feel free to email us at samht@phillip.com.sg or onishathyeyn@phillip.com.sg or cfd@phillip.com.sg.
Disclaimer
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Accordingly, no warranty whatsoever is given and not liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information. Investments are subject to investment risks.
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Clients are advised to understand the nature and risks involved in margin trading. You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualifies financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.
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About the author
Sam Hei Tung (Dealing) and Onisha Thye (Dealing)
Sam graduated from National University of Singapore with a Master of Science in Finance. He personally manages his own investment portfolio and does equity and economic research in his free time. Sam believes that education and information is essential to making good financial decisions.
Onisha is a dealer at the CFD Dealing Desk. She graduated from Monash University with a double major in finance and econometrics. Her natural curiosity for finance is what drove her to be in this field as she is fascinated by all the possibilities and opportunities that are available to grow one’s wealth, either through trading or investment.
