Weekly Updates 13/11/23 – 17/11/23 November 14, 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 (06 Nov 2023 – 10 Nov 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 US consumers facing slowdown in consumption, lower savings level, higher overall debt and delinquencies. As the US economy is 67.7% from private consumption, the strength of the US consumer is critical to both the economy and forward GDP guidance. Analysts are starting to anticipate and price in a potential economic slowdown.
Updates for the week (13 Nov 2023 – 17 Nov 2023)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on both the US and China macro data with CPI & Retail Sales data coming out of the US, market participants and analysts are looking closely at the releases to forecast both the Fed’s rate hike path and the strength of the US consumer. China is releasing retail sales data which is expected to increase by 7% YoY, while industrial production is expected to increase by 4.5%.
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 China Tech stocks like Tencent, JD.com, Alibaba and China EV XPeng. With most China Tech stock in a down trend, analysts and investors are looking at upcoming earnings releases to find any bullish theme/sentiment and positive forward guidance. Over in the US, companies like Walmart. Home Depot and crowd favorite Sea Limited are in the sightlines of market participants. Forward guidance and comments by these companies will reflect what they expect the US consumption looking forward to will be.
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.
JD.com (9618.HK) Channel Play – by Sean Ng
Key Entry Price Pivot(s):
- $102.00
Recommended Trade:
- Short at $102
- Stop Loss at $108
- Take Profit at $88
Alternative Case:
- Long at $102
- Stop Loss at $120
- Take Profit at $97
Remarks:
- JD.com is pushing all-time lows with downward momentum
- Price is currently forming a downward channel on the daily chart
- The 50 EMA is downtrending as well and price is trading below it, setting up for a potential short trade
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.
