Weekly Updates 15/4/24 – 19/4/24 April 15, 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 (08 Apr 2024 – 12 Apr 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 hotter than expected CPI data coming out of the US causing market participant’s expectation on upcoming rate cuts to be delayed. Recent inflation and other US macro data points towards inflation are still higher than analysts expect. Short-term bond yield has increased to reflect the change in sentiment of bond traders. Long-term bond yields rise 2-3% causing US index and Hang Seng Tech index to fall.
Updates for the week (15 Apr 2024 – 19 Apr 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s economic release mainly focuses on Retail Sales coming out of both the US and China and GDP, Industrial production data coming out of China. Analysts expect a slow down in terms of Retail Sales and GDP of China. With market participants looking for bullish signs from the China macroeconomic data, any surprises will result in increased volatility. Furthermore, with escalating tensions in the Middle East, traders and investors should take proper risk management strategies.
This week’s corporate earnings focuses on Financial companies like Goldman Sachs, brokerages like Charles Schwab, and payment companies like American Express. With the start of the quarter, financials usually report first and sets the tone for upcoming earnings releases. So far, financials have been reporting below analyst expectations alongside the bearish macro releases (hotter than expected CPI). Traders and investors are looking for more earning releases to position their portfolio.
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.
US Oil: Potential Bullish Continuation – by Jun Yuan Kwong
Key Entry Price Pivot(s)
- $79.40
Recommended Trade
- Long at level $79.40
- Take profit at $84.50
- Stop loss at $76.50
Alternative Case
- Short at level $76.40
- Take profit at $75.40
- Stop loss at $77.40
Remarks
- Looking at the daily chart of the US Oil, we can see that the price is in an uptrend channel.
- Currently, the price is rejecting the resistance of the channel, and we may see the price extending towards the support of the channel and towards the 20 EMA & 50 EMA.
- We can potentially look for a long trade when it hits the support of the channel and the 50 EMA with a confluence of a bullish 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
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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.
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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.