Weekly Updates 11/11/24 – 15/11/24 November 11, 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 (04 Nov – 08 Nov 2024)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week US equities closed higher after Trump won the US election with 312 electoral votes. The US dollar also gained strength after the polls closed, where the market was pricing in a win for Trump. Powell reveals that the FOMC revised the target federal fund rates to 4.5% – 4.75% and that the FOMC’s decision would not be affected by the election results in the near team last Friday. Short term US inflation numbers are at 2.3% in path with the target that FOMC wants at 2%. STI also gained from strong earnings reported from the financial sector. Meanwhile, HK and China equities suffered from the US election as Trump pledged to impose tariffs on Chinese goods. Asian country leaders are also congratulating Trump’s victory with anticipation to build better economic relations with the US.
Updates for the week (11 Nov – 15 Nov 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week ahead, US CPI consensus data is at 2.6% still higher than the Fed’s target of 2%. China’s Friday economic consensus data showed that YoY production and retail sales are expected to increase amid their weakening economic growth environment. However if the actual data is below expectations, traders may find pockets of volatility to open short positions.
Earnings releases for this week mainly focus on tech growth stocks in the US like Shopify, Spotify, Sea Limited and the first wave of Hong Kong tech earning releases from Alibaba, JD.com, Tencent and Bilibili. Given the recent bullish movement in the US stock market, market participants have high expectations on the company’s forward guidance and earning releases. While for Hong Kong and China tech stocks, market participants are more eager to find out if the domestic consumption in China has picked up or require more stimulus to regain consumer confidence
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. If you hold equity positions in these stocks, you can hedge your positions using CFDs to mitigate the risk of disappointing earnings releases.
Alibaba (9988.HK): Potential Long Opportunity by Donny Lew
Key Entry Price Pivot(s)
- HK$93.50
Recommended Trade
- Long at Level HK$93.50
- Take profit at HK$117
- Stop Loss at HK$89
Alternative Case
- Short below HK$88
- Take profit at HK$70
- Stop loss at HK$95
Remarks
- Looking at the daily chart of Alibaba, we can see that the price has pull back to the uptrend line
- Currently, we are waiting for the price to form bullish candle at around HK$93.50. We can potentially look for a long trade at this level in a lower timeframe with confluence such as a bullish bar at the support level with significant volume.
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 (Assistant Manager, 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.
