Weekly Updates 27/11/23 – 1/12/23 November 27, 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 (20 Nov 2023 – 24 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 Treasuries declined on last Friday, catching up with moves in global bonds after trading resumed following the Thanksgiving holiday. Meanwhile US equity futures were steady, leaving the S&P 500 on course for its fourth straight weekly gain. Indicators are signaling that the labour market is colling off with the initial jobless claims declined to 209k as compared to the 225k expected. This also reaffirms the majority views of the Fed is done hiking interest rates for the current cycle.
Updates for the week (27 Nov 2023 – 01 Dec 2023)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on GDP, manufacturing and housing data coming out of the US. With US GDP expected to increase to 5% annualized (QoQ) compared to 4.9% previously. Analysts are expecting a weaker US consumer to drop in personal income and personal spending. Market participants are slowly pricing in a potential soft landing as inflation slows and the US economy is resilient and strong labor markets. China is releasing its Manufacturing PMI data on Thursday which is expected to increase slightly from 49.5 to 49.7. A potential source of volatility if there are any positive or negative surprises.
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 focus on Hong Kong and US tech stocks like Snowflake, Salesforce from the US and Meituan, PDD, Bilibili from Hong Kong. Given Snowflake’s impressive rally of ~20% from recent lows in late October, market participants are expecting positive forward guidance and earning results from their earnings release. Whereas Meituan and PDD have mixed performance recently with PDD outperforming Meituan. Investors and traders are looking for any bullish sentiment in the Hong Kong tech sector as it has been overall underperforming compared with the US tech.
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.
Is EUR/USD Losing Its Bullish Momentum? – by Tan Peng Chien
Key Entry Price Pivot(s)
- 1.0965
Recommended Trade
- Short at 1.082
- Stop Loss at 1.0851
- Take Profit at 1.0727
Alternative Case
- Long at 1.0971
- Stop Loss at 1.0939
- Take Profit at 1.1066
Remarks
- EUR/USD recently swept a previous lower high on the daily chart near the price of 1.09400.
- The bullish momentum has then slowed down showing no higher highs on the lower timeframes as the trading week comes to an end.
- With a clear imbalance of price below current price levels, price could continue pushing downwards to fill the gaps from the previous push, aiming for a profit target at the bottom of the imbalance (1.0727).
- Alternatively, with price still on a bullish momentum on the higher timeframes, traders could also look for a more conservative approach and ride the current trend. Possible price movement would be for price to push above the pivot point of 1.0965, taking a stab at creating a higher high.
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.
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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.
