Weekly Updates 19/2/24 – 23/2/24 February 19, 2024

Weekly Updates 19/2/24 – 23/2/24

Weekly Updates 19/2/24 – 23/2/24


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 (12 Feb 2024 – 16 Feb 2024)

Weekly Updates 19/2/24 – 23/2/24*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 CPI data coming in hotter than expected. Casting doubt and uncertainty on upcoming US Fed rate cuts.US and Singapore 10 year bond yields spiked in response. Market participants are expecting more support from the China government to put a floor on China and Hong Kong stock prices. Causing a rally in major China and HK stock indexes.


Updates for the week (19 Feb 2024 – 23 Feb 2024)

The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.

Weekly Updates 19/2/24 – 23/2/24

This week’s macro news mainly focuses on Leading Index and housing data coming out of the US and SG inflation data. Analysts expect an improvement in existing home sales to 3.97m from 3.78m prior. Some investors are cautious with the US housing markets as some weaknesses are spotted with small sized US local banks showing stress.

Singapore CPI YoY is expected to increase slightly to 3.8% from 3.7% prior. Market participants may forecast MAS to ramp up foreign exchange intervention to combat inflation if CPI is higher than expected. SGD FX traders should take note and position properly with proper risk management to not be negatively affected by the macro news release.


Weekly Updates 19/2/24 – 23/2/24

This week’s corporate earnings focuses on NVIDIA, Walmart, Home Depot, Square, Grab, SIA, iFast, Rivian and Financials. NVIDIA is at front and center for both investors and traders recently as NVIDIA has had an impressive rally of ~50% since start of the year to now. Analysts are pricing in massive bullish news in terms of AI and Nvidia’s contribution to the overall and future AI market. With Meta announcing its purchasing a large quantity of AI chips from Nvidia, market sentiment is at an all time high.

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.


Weekly Updates 19/2/24 – 23/2/24


Wilmar Intl (WMI.SG) Channel Play – by Sean Ng

Weekly Updates 19/2/24 – 23/2/24

Key Entry Price Pivot(s)

  • $3.23

Recommended Trade

  • Long at $3.23
  • Stop Loss around $3.18
  • Take Profit around $3.33

Alternative Case

  • Short at $3.18
  • Stop Loss around $3.24
  • Take Profit around $3.07

Remarks

  • WMI.SG has been selling off since 2023, with minor retracements along the way
  • On 18 Jan 2024, WMI.SG was oversold (below 30) based on the Relative Strength Index (RSI)
  • On 9 Feb 2024, WMI.SG’s price fell, but RSI increased back into the 30 to 70 range, indicating bullish divergence
  • Traders can thus seek to take a long scalp trade if price follows through, or a short trade if the initial downtrend persists


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.

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.

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