Weekly Updates 30/10/23 – 3/11/23 October 30, 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 (23 Oct 2023 – 27 Oct 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 US GDP coming in higher than expected (4.9% vs 4.5% expected), US 10 year yields retreating from 5% and major tech earnings below expectations. Hang Seng Index and Hong Kong Tech Index rallied on China government stimulus. Giving the Hong Kong and China markets a short change in sentiment.
Updates for the week (30 Oct 2023 – 03 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 Manufacturing data coming out of both China and the US which is expected to increase, showing some resilience in the manufacturing sector. Furthermore, employment data and FOMC rate decisions are up this week as analysts and market participants are eager to assess the US labor market since big tech and banks have been focusing on laying off employees. The Fed is expected to maintain rates this meeting.
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 a wide range of S&P500 companies like Apple, Eli Lilly, AMD, McDonald, Pfizer and more. Oil companies like PetroChina, BP and Shell are also under the microscope as the recent increase in crude oil prices due to war in the middle east has sent Oil stocks higher. Market participants should already have changed their outlook on corporate earnings after the disappointing last week. Traders and investors need to be aware of earning releases of big players in sectors that they are exposed to, as big players tend to shift the whole sector.
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.
Hong Kong Index (HSI): Potential Bearish Continuation- by Jun Yuan
Key Entry Price Pivot(s):
- 17,750
Recommended Trade:
- Short at level 17,750
- Take profit at level 17,400
- Stop loss at level 17,900
Alternative Case:
- Long above level 17,950
- Take profit at level 18,300
- Stop loss at level 17,800
Remarks:
- Looking at the daily chart of the Hong Kong Index (HSI), we can see that the price is in a downtrend channel.
- Currently, the price is rejecting the support of the channel, and we may see the price extending towards the resistance of the channel and towards the 50 EMA.
- We can potentially look for a short trade when it hits the resistance of the channel and the 50 EMA with a confluence of a bearish bar.
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
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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.
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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.
