Weekly Updates 15/7/24 – 19/7/24 July 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 Jul 2024 – 12 Jul 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 stocks finished higher as the latest economic data reinforced bets on the Fed will cut interest rates by September with a 50 basis points of easing. As a result, US bond slipped by 2.23%. S&P 500 rose to 5614.75 which is the 10th weekly gain in 12 weeks which led by Nvidia in big tech.
Updates for the week (15 July – 19 July 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This coming week is a big week in the US with politics, retails sales and the Fed in focus. Inflation and higher rates have tested the resilience of households as signs of a cooling economy and inflation bolster expectations for rate cuts to start in Sept 2024. Tuesday’s retail sales data is expected to fall by 0.2%, showing that the consumer sector is experiencing slow growth. Investors are laying eyes on the discussion of Fed chief Jerome Powell with David from the Economic Club of Washington DC on Monday. Traders will divide their focus between earnings season and the US election with the upcoming Republican National Convention drawing a lot of attention after the shooting incident during Donald Trump’s speech. On the other hand, markets will be focused on China’s key rate decision this week with a few economic readings being released including GDP, industrial output and retail sales.
This week’s corporate earnings mainly focus on US which includes several leaders in their own sectors such as Morgan Stanly, Johnson & Johnson as well as UnitedHealth; all of them will unveil their Q2 2024 earnings. Investors are laying eyes on them as each will reveal crucial data that could shift market sentiment. These earnings reports offer a snapshot of economic resilience amid ongoing inflation concerns and potential rate adjustments. On the micro level, Goldman Sachs, Morgan Stanley and BlackRock reports will signal how banking and investment landscapes are, which influence both stock prices and regulatory outlooks; while UnitedHealth and Johnson & Johnson provide clues on healthcare spending and drug pricing. One more company that is worth noting will be Netflix, where analyst expect the company to have a continued increase in subscriber growth as it moves deeper into live event sports programming
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. 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.
Hong Kong Index (HSI): Channel Trade By: Jun Yuan Kwong
Key Entry Price Pivot(s)
- 17989
Recommended Trade
- Short at level 17989
- Take profit at 17600
- Stop loss at 18200
Alternative Case
- Long at level 18230
- Take profit at 18480
- Stop loss at 18000
Remarks
- Observing the 4-hour chart of the Hong Kong Index, we can see that the price is in a downtrend channel.
- Currently, the price is moving towards the channel’s resistance and testing the 200 EMA resistance.
- Traders can potentially look to take a short trade when a significant bearish bar forms at the channel resistance. This indicates that the price might be rejecting the channel resistance and suggests that the price may extend towards the channel’s support.
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 (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.
