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):
- Short at $102
- Stop Loss at $108
- Take Profit at $88
- Long at $102
- Stop Loss at $120
- Take Profit at $97
- 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
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.