Weekly Updates 11/12/23 – 15/12/23 December 11, 2023
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 Dec 2023 – 08 Dec 2023)
*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 mixed Macro Data coming out of the US suggesting that even with recent high interest rate environment due to the Fed increasing interest rates to combat inflation, the US consumer has been resilience and labor markets are strong. However, factory orders and manufacturing sectors have took a hit, while market participants digest the macro releases, over sentiment has been positive and bullish. Moody cuts Hong Kong / China outlooks causing more negative sentiment in the HSI and HST index. Weak and mixed macro data coming out of China has also caused stocks to sell off.
Updates for the week (11 Dec 2023 – 15 Dec 2023)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on CPI, PPI, FOMC Rate Decision and manufacturing data coming out of the US. All eyes are on CPI data as it is one of the main inflation metrics that the Fed uses. Furthermore market participants are watching the FOMC rate decision and any forward comments on interest rate outlook for the next Fed meeting and 2024. As interest rate outlook has been moving all the major markets from property to bonds and equities. Investors and traders are also having mixed expectations of China macro data such as industrial production and retail sales.
Traders should position their portfolio before the macro news release to not be negatively affected and have good risk management.
This week’s corporate earnings focuses on US stocks such as Oracle, Adobe and Costco. With all 3 counters experiencing impressive rallies in 2023, analyst and market participants have high expectations on their earning releases and more importantly the forward guidance for 2024.
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.
UK 100 Index: Rectangle Pattern Trading Opportunity – by Jun Yuan Kwong
Key Entry Price Pivot(s)
- 7545
Recommended Trade
- Short at level 7545
- Take profit at 7485
- Stop loss at 7460
Alternative Case
- Long at level 7480
- Take profit 7540
- Stop loss at 7460
Remarks
- Looking at the 30-minute chart of the UK 100 Index, it had recently been consolidating in a rectangular range between $7545 and $7480, with strong support and resistance, respectively, on either side.
- The rectangle pattern indicates there is no trend, as the price moves up and down between support and resistance.
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.
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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.
