Weekly Updates 30/12/24 – 3/1/25 December 30, 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 (23 Dec – 27 Dec 2024)
*These prices are taken based on the previous Monday’s opening price and the preceding Friday’s closing price.
Last week was a holiday shortened trading week due to Christmas however it was anticipated due to the ‘Santa Claus’ rally, this is proven where all the indexes rose where S&P500 lead the charge last week among US indexes as it rises by 0.55%, Nikkei 225 being the highest at 3.18%. However, the market’s strength will be tested again shortly after when US companies start to report their Q4 earnings while Trump’s inauguration on 20 Jan 2025 will spur the market further. Furthermore, US 10-year yields have been on a rise, putting pressure on equity prices.
Updates for the week (30 Dec 2024 – 03 Jan 2025)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week ahead into 2025, the Fed will most likely continue cutting rates to 3.5% – 4% but in a slower pace. This is to gradually stimulate the economy while keeping inflation in check, given the recent comments from the US Federal Reserve, markets are pricing in less rate cuts in 2025 than previously anticipated. Although Initial Jobless Claims in US are expected to rise to 222k this week, it is believe by the Fed that labor market is normalizing around the 200k – 250k range due to pro-growth policies which encourage more businesses to hire more.
No major companies releasing their earnings releases this week due to New Year’s Day.
Hong Kong Tech Index (HTI): Breakout Opportunity by Louis Hee
Key Entry Price Pivot(s)
- 4497
Recommended Trade
- Long above 4497
- Take Profit at 4652
- Stop Loss at 4437
Alternative Case
- Short below level 4497
- Take profit at 4355
- Stop loss at 4588
Remarks
- The 1-hour chart of HTI is showing that it has break through its resistance level.
- Traders can potentially seek to take a long trade with current momentum, or a short trade if price fall below the support level.
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 (Assistant Manager, Dealing) & 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.
