Weekly Updates 11/3/24 – 15/3/24 March 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 Mar 2024 – 08 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 the US Fed giving dovish comments on the Fed being close to ready to begin cutting rates. NVIDIA and other semiconductor companies continued their rally. However the overall index underperformed and ended the week lower.. With Super Micro joining the S&P500, AI and chip manufacturing stocks take up a larger proportion of the S&P500 than before. US and SG 10 year bonds yields dropped from US Fed’s comments alongside the dollar index.
Updates for the week (11 Mar 2024 – 15 Mar 2024)
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, retail sales advance and manufacturing data coming out of the US and Money Supply M2 data coming out of China on Saturday. With the US Fed and market participants watching inflation numbers closely, the bulls are looking for a lower than expected CPI number for the Fed to justify an early than expected interest rate cut while the bears hope for a higher than expected CPI number as inflation is still high and uncontrolled. Investors and traders should position their portfolio accordingly to reduce the impact of sudden surprises in macro releases.
This week’s corporate earnings focuses on tech companies like Oracle, PDD and Adobe. With mixed Year To Date returns, market participants are eager to see how do these companies do in a AI focused market. PDD has lost 24% of its value Year to Date compared to its competitors that lost only ~9% (JD.com). Analysts are looking forward to company’s guidance and comments on the upcoming quarter.
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.
HTI: Breakout Trading Opportunity – by Kwong Jun Yuan
Key Entry Price Pivot(s)
- 3420
Recommended Trade
- Long at 3420
- Stop Loss at 3338
- Take Profit at 3540
Alternative Case
- Short at 3335
- Stop Loss at 3418
- Take Profit at 3200
Remarks
- Analysis of HTI 1-hour chart reveals a symmetrical triangle pattern since March 4, 2024, indicating a period of consolidation.
- The narrowing gap between the converging trend lines suggests an imminent breakout, typically resulting in a significant price movement.
- A trading strategy could involve taking long or short positions based on the breakout direction once the resistance level is breached with a strong candlestick bar.
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.
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.