Weekly Updates 14/10/24 – 18/10/24 October 14, 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 (07 Oct – 11 Oct 2024)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week S&P 500, DJI and Nasdaq all moved higher last week due to some upside earnings surprises from major financial institutions. Wells Fargo and JP Morgan rose on Fri after they reported better than expected results where JP Morgan has a $4.37per share on $42.7 billion in revenue, while Wells Fargo beat expectations of $1.42EPS va $1.28 EPS. There is also a solid rise in NVIDIA shares which helped growth stocks to beat the value stocks. It has helped with the recent decline in Alphabet and Tesla. US 10-year bond rose to 3.49% in the wake of inflation data. The upside consumer inflation surprise has led to a notable change in expectations for the Fed’s upcoming policy meeting in Nov where many participants expect a 25bp rate cut as opposed to a 50bp rate cut.
Updates for the week (14 Oct – 18 Oct 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This coming week will give a first glimpse of how did the port strike and Hurricane Helene affected the upcoming economic data, which is expected to be a on a weakside for this week. Jobless claims on Thursday is expected to rise due to Fed surveys shows that employment is degrading as there are spillover effects from the Boeing Co strikes. Layoffs have continued to creep up for most seasonal sectors like education, construction and manufacturing. However, retail sales advanced MoM is expected to rise by 0.1% due to the consumer spending continues to grow at modest pace. Analyst do not expect consumer sentiment to continue improving ahead of the election. Also, China is in the spotlight for this week as they are publishing monthly figures of retail sales and industrial output for Sept along with its GDP data.
Earnings releases for this week mainly focus on remaining banks and finance companies like Bank of America, Goldman, Citi Group, Blackstone and US tech giant Netflix. With overall positive earnings releases and sentiment from financials, market participants are eager to see upcoming forward guidance from major players to determine the strength of the US consumer.
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.
Hong Kong Tech Index (HTI): Range Trading Opportunity by Louis Hee
Key Entry Price Pivot(s)
- 4844
Recommended Trade
- Short at level 4844
- Take Profit at 4613
- Stop Loss at 4930
Alternative Case
- Long at level 4613
- Take profit at 4844
- Stop loss at 4504
Remarks
- The 30-minutes chart of HTI is showing a range channel.
- The price pulled back when it touched the channel resistant level.
- Traders can follow the trend to take a short trade when the price hit the resistant level.
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.
