Weekly Updates 26/2/24 – 1/3/24 February 28, 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 (19 Feb 2024 – 23 Feb 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 Nvidia publishing an impressive earnings turning US market sentiment bullish ending the week with gains in all 3 US indexes (S&P500, Dow, Nasdaq). Singapore 10 year government bond raised 2.46% putting pressure on Strait Times Index and Singapore equities.
Updates for the week (26 Feb 2024 – 01 Mar 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on GDP from both US and Hong Kong, manufacturing data from both China and US. As China manufacturing data contributes 27% to China’s GDP, manufacturing as a whole pays an important role in China’s economy. Analysts and market participants are expecting an increase in personal income of US consumers from 0.3% prior to 0.4% expected, however analysts expect a decrease in personal spending from 0.7% prior to 0.2% expected.
This week’s corporate earnings focuses on tech companies like Zoom, eBay, Salesforce, Snowflake, followed by a wide range of Singapore companies from Financials like OCBC, Great Eastern to staples and index components. US earning releases has been mixed and any positive or negative surprises have been rewarded or punished with big market movements. Investors and trades should position themselves properly if they do not wish to take on unnecessary risk during earning season.
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.
Keppel Ltd. (KEPS.SG): Channel Play – by Sean Ng
Key Entry Price Pivot(s)
- $7.19
Recommended Trade
- Long at $7.19
- Stop Loss around $7.03
- Take Profit around $7.70
Alternative Case
- Short at $7.03
- Stop Loss around $7.38
- Take Profit around $6.15
Remarks
- KEPS.SG has been forming an ascending channel and is poised to break out
- KEPS.SG has just bounced off the lower bound of the channel, providing traders with a potential long trade opportunity
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.
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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.