Weekly Updates 16/12/24 – 20/12/24 December 16, 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 (02 Dec – 06 Dec 2024)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week the US stock market ended lower by 0.52% for the week despite Broadcomjumped to an all-time high due to a bullish AI trend, its market cap topped $1 trillionafter they predicted that they will have an AI sales gain of around 65% in Q1 2025.Technology stocks continued their upward trend which drove the Nasdaq above the20k mark for the first time last Wednesday. This rally was in line with a recent inflationreport which is consistent with the Fed that a 25bp rate cut in the coming meeting isneeded.On the other hand, yields on the US 10 year bond rose by 4.65% hitting a 3weeks high.
Updates for the week (16 Dec – 20 Dec 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
US data releasing in the coming week may indeed show a continued positive performance of the US economy. It is expected that labour market is still strong and productivity growth will continue to support activity and hiring, hence retail sales and industrial production are expected to rise by 0.5% and 0.3% respectively. This is also due to the year-end festive seasons. All eyes are on the FOMC meeting which is scheduled on Wednesday (Thursday morning Singapore time) where most likely they will cut rates by 25 basis point and signal a more cautious stance on rate cuts in 2025.
Earnings releases for this week focus on US companies like Micron, Nike and FedEx. Micron enjoyed a YTD rally of ~24% mainly from its ability to capture both the AI hype and massive growth in its top line and bottom line. Market participants are eager to see Micron’s forward guidance and the projection of its upcoming quarters. Nike on the other hand is down ~-27% YTD and is struggling to keep up with the competitors. Investors are looking for a turn around positive forward guidance in to the festive season. FedEx is a business where benefits most from the velocity of online business, market participants use it as a proxy to predict upcoming online sales.
GBP/JPY: Bullish Channel by Tan Peng Chien
Key Entry Price Pivot(s)
- 190.325
Recommended Trade
- Long at 194.454
- Stop Loss: 192.005
- Take Profit: 199.812
Alternative Case
- Short at 190.325
- Stop Loss: 191.800
- Take Profit: 184.773
Remarks
- GBP/JPY is currently trading within a bullish channel.
- The price has tested both the upper and lower bounds of the channel, continuing to form higher highs.
- As the price remains in the discount region of the channel, we can capitalize on the bullish momentum by entering long positions at current levels. The target is set at the previous high of 199.812, with a stop loss at 192.005.
- Alternatively, if the price breaks below the lower boundary of the channel, the strategy shifts to a short position, targeting the low of 184.773, with a stop loss around 191.800.
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) | 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.
