Weekly Updates 20/11/23 – 24/11/23 November 20, 2023
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 Nov 2023 – 17 Nov 2023)
*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 cooler than expected CPI data coming out of the US. Analysts and market participants expect the US Fed to potentially stop increasing rates and lower rates earlier than previously forecasted. As inflation is lower than projections, higher probability of a soft landing for the US economy. Sending global equities higher to end the week.
Updates for the week (20 Nov 2023 – 24 Nov 2023)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on US housing data, durable good orders and initial jobless claims. Singapore is releasing GDP and CPI data that is expected to both increase. Market participants and analysts are expecting a dip in US property markets as the interest rate hikes start to affect long term financing rates. Furthermore, as major companies start to lay off workers, initial jobless claims are an early detection data of what labor markets will do in the upcoming weeks. Traders and investors should look closely at the initial jobless claims to see the upcoming employment trends along with other employment macro data.
Traders should position their portfolio before the macro news release to not be negatively affected and have good risk management.
This week’s corporate earnings focuses on Tech stocks like NVIDIA, Dell, HP, Zoom and Xiaomi. Recently, Xiaomi share price rose by 19.85% for the past month when Apple faces a slump in sales in China. Many investors are laying their eyes on Xiaomi earning release for the past quarter as they expand in to EV and Advanced IoT. On the other hand, market participants will pay attention to the other tech companies to look out for any sentiment for the next quarter so that they can prepare of what is yet to come.
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.
Shorting NASDAQ – by Annabelle Tang
- From the Chart above, we see 3 support and resistance points where shorting is likely to grant profits approximately 200 points/li>
- Therefore, we recommend shorting Nasdaq at around 15,325 and take profit at 15,127.
- In this case, stop loss should be placed based on the trader’s own risk appetite as no other viable support/resistance is seen as traders can view in the chart below (Time Period: Aug to Sept):
- The same support/resistance (scale set to fixed on MT5) used, has similarly shown the downwards movement of prices.
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.