Weekly Updates 20/5/24 – 24/5/24 May 20, 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 (13 May 2024 – 17 May 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 bullish sentiment on Hong Kong and Chinese stocks with foreign investors piling into Chinese and Hong Kong equities pushing up the HSI and HSTI by 4.74% and 5.73%. Furthermore, the Chinese government has considered buying unsold homes to save the property markets. Showing more policies and attempts in combating the property crisis in China. US equities rallied on comments by the US Fed and macro data that suggests that rate hikes are no longer on the table. Pushing Dow over 40,000 for the first time.
Updates for the week (20 May 2024 – 24 May 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s economic highlight is on Thursday with Fed’s meeting minutes being released based on the last FOMC meeting. US economic data releases for this week are relatively light with reports on April sales of previously owned homes being reported on Wednesday while new homes on the following Thursday. Purchases of existing homes have seen a little change from prior month while contract signings on new houses are projected to have eased from 683k to 679k as mortgage rates back above 7%. Durable goods on Friday enable investors to have an insight of companies’ appetite for capital investments while the Michigan Sentiment is expected to rise to 67.7 as consumers gain confidence back when inflation is slowing down. Singapore is releasing GDP and inflation data on Thursday with investors laying eyes on it taking it as a forward guidance on the impact it will have.
This week’s corporate earnings mainly focuses on US and HK stock such as XPeng and Li Auto amid disruptive moves by rivals in their home market; Tesla had another round of price cuts while Xiaomi has launched their own new car. Nvidia is set to release earnings on Wednesday, another highly anticipated earnings call with its high valuation and expected growth due to AI adoption from major tech companies. Other US stocks are releasing earnings too with Netease being projected by analysts to grow by 6% in revenue boosted by new games released during Chinese New Year period with more games gaining approvals in China, which previously was a pain point for many businesses.
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.
Mapletree Logistics Trust: Double Bottom by Alex Lee
Key Entry Price Pivot(s)
- $1.29
Recommended Trade
- Long at $1.33
- Stop Loss at $1.29
- Take Profit at $1.51
Alternative Case
- Short at $1.29
- Stop Loss at $1.33
- Take Profit at $1.20
Remarks
- Looking at the daily chart of Mapletree Logistics Trust, we can see that price has rejected the low and formed a double bottom with significant volume thereby presenting an opportunity for going long
- We may see price extending towards the next resistance level at $1.49
- An alternative case is presented in the event of a breakout towards the short side.
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.
