Weekly Updates 10/6/24 – 14/6/24 June 10, 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 (03 June 2024 – 07 June 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 the US trade deficit widened in April to the largest since Oct 2022 on a surge in imports of goods. The gap in goods and services has widened by 8.7% from the prior month to US$64.6billion. This suggests trade will again be a constraint for economic growth for the first time since 2022; moreover softer overseas economies are restraining demand for US exports. Besides, world stocks hit an all time high after a cautious ECB rate cut where MSCI’s 47 country main world index rose by 0.3%; S&P 500 index rose by 1.13%; Nasdaq rose 2.55% DJI also rose by 0.13%.
Updates for the week (10 June 2024 – 14 June 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s economic highlight is on FOMC’s rate decision where last week’s job report is a key data for the Fed before it announces it’s interest rate decision on Thursday. The final bit will be May’s inflation data which will land on Wednesday night where economists expect the pace of price gains to be held flat at 3.4%. With US labour market in decent shape and inflation still causing disturbance, analysts and market participants expect the Fed hold interest rates at current levels.
This week’s corporate earnings mainly focuses on US which includes Oracle, Broadcom and Adobe. Oracle has been enjoying a 21% YTD gain and market participants are eager to analyse Oracle’s upcoming earnings release and forward guidance to determine if the rally will continue. While other countries’ companies earning releases are relatively more quiet this week.
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. As CFD is traded on margin, there is a risk of losing more than your initial deposit amount and traders need to adopt proper risk assessment and management to determine if CFD is the product for you.
NASDAQ Forming Flag Pattern In Strong Rally by Jeraldine Tan
Key Entry Price Pivot(s)
- 19,117
Recommended Trade
- Long at 19,117
- Stop Loss at 18,877 (240 pts)
- Take Profit #1 at 19,357 (240 pts)
- Take Profit #2 at 19,577 (460 pts)
Alternative Case
- Short at 18,900
- Stop Loss at 19,140 (240 pts)
- Take Profit #1 at 18,660 (240 pts)
- Take Profit #1 at 18,420 (480 pts)
Remarks
- Nasdaq has been in an uptrend – with AI and Crypto booming, trend is likely to be up.
- Nasdaq formed a Flag pattern on 1H chart with both extreme top and low tested. This presents a good chance for breakout trade either to the up/down side.
- Recommended trade is a bullish continuation to the upside.
- Alternative case is presented for a bearish trade (for traders who think market is overpriced and due for a correction) with a similar risk reward.Alternative case is presented for a bearish trade (for traders who think market is overpriced and due for a correction) with a similar risk reward
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
This material is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs.
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.
The risk of loss in leveraged trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated.
The resulting deficits in your account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange.
You should also be aware of the commissions and finance costs involved in trading leveraged products. This product may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low.
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.
You are advised to read the trading account Terms & Conditions and Risk Disclosure Statement (available online at www.poems.com.sg) before trading in this product. Any CFD offered is not approved or endorsed by the issuer or originator of the underlying securities and the issuer or originator is not privy to the CFD contract. This advertisement has not been reviewed by the Monetary Authority of Singapore.
CFD Disclaimer
Investments are subject to investment risks. The risk of loss in leveraged trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated. The resulting deficits in your account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange. You should also be aware of the commissions and finance costs involved in trading leveraged products. This product may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low. 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 qualified 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. You are advised to read the trading account Terms & Conditions and Risk Disclosure Statement (available online at https://www.poems.com.sg/) before trading in this product.
Any CFD offered is not approved or endorsed by the issuer or originator of the underlying securities and the issuer or originator is not privy to the CFD contract.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.
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.
