Weekly Updates 20/1/25 – 24/1/25 January 20, 2025
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 (13 Jan – 17 Jan 2025)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week all US indexes closed higher on last Friday, with Nasdaq rising 4.12%, S&P500 rising 3.71% and the DJI rise by 3.73% as market participants are preparing for the Donald Trump inauguration on coming Monday. However, it will be a US public holiday to commemorate Martin Luther King Junior Day. Major tech stocks rebounded from significant losses, closing higher across the board on Friday. Nvidia (NVDA), a key player in AI, and electric vehicle manufacturer Tesla (TSLA) both rose around 3.1%,while Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) also saw gains. Intel rose by 9.3% last week which help pushed the S&P 500 while chip stocks like Broadcom and Marvell Tech posted big gains.
Updates for the week (20 Jan – 24 Jan 2025)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
The most prominent event to look for this week will be the Inauguration Day in the US where the elected President Donald Trump is going to sign more than 100 executive orders, especially for markets — the tariffs. Initial Jobless claims will continue to show that layoffs are still happening as consensus are at 220k from 217k for the previous week. Mainly the rise in claims are from California due to evacuation orders from wildfires. The existing home sales are expected to only rise by 0.05m from Dec 2024which is at a slower rate than Nov 2024 given that mortgage rates have risen over the second half of Dec 2024.
Earnings releases for this week focus on Netflix, P&G, American Express from the US and MapleTree Trusts from Singapore. With analysts expecting a $10.12 billion in sales in the quarter ended Dec 31 2024, an increase from $8.83 billion from a year ago. Market participants should position themselves accordingly as any surprise in both top line and bottom line will likely cause Netflix to spike up or spike down. While Procter& Gamble is a good proxy on consumer staple stocks in the US, and will set the market sentiment. American Express will give market participants a glimpse in to the velocity of money in the economy and spending behaviors. Traders and investors should adopt proper risk management heading in to the earning season.
EUR/USD: Greenback Dominates by Tan Peng Chien
Key Entry Price Pivot(s)
- 1.0283
Recommended Trade
- Short Short at 1.0274
- Stop Loss: 1.0283
- Take Profit: 1.0240
Alternative Case
- Long at 1.0283
- Stop Loss: 1.0268
- Take Profit: 1.0304
Remarks
- EURUSD is currently riding a downtrend as the greenback dominates.
- With prices forming lower lows and lower highs along with strong upside rejection, we can capitalize on the bearish momentum by shorting the pair at1.0274 with a target at the next low of 1.0240 and stop loss set at the pivot of1.0283.
- Alternatively, if prices rise above the pivot point, the strategy shifts to a long targeting a price rejection high of 1.0304, with a stop at 1.0268.
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.
