Weekly Updates 30/9/24 – 4/10/24 September 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 Sep – 27 Sep 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 China’s policymakers announced a stimulus package on 24 Sept which includes cutting interest rates and providing more support for the stocks and property market. The major uptick in HSI and HSTI of13.13% and 22.56% respectively has shown that the policy sent a positive domestic macro shockwaves across the stock market. However, it is important for market participants to note that China still faces a deep structural problem within the economy. The S&P 500 index rose by 0.46% which led by the Tech sector where Apple contributed the most to the index gain increasing by 0.5% while Micron had the largest increase (14.7%) among the tech stock.
Updates for the week (30 Sep – 04 Oct 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week ahead, Jerome Powell will be discussing at the US economic outlook conference on Tuesday morning 1:55am which will give market participants a glimpse of the US’s economy and rate path. On Tuesday, most surveys showed improvement in new orders and production where the ISM Manufacturing data is expecting demand holding relatively strong through Sept 2024. The initial jobless claims is expected to remain low, but due to the strike of nearly 33k workers from Boeing that began in Sept13 is most likely to boost that claims to an overall of 221k claims. NFP data release on Friday are expected to see an increase of around 146k due to seasonal decline in the hospitality and entertainment sectors, therefore unemployment rate is also expected to remain the same at 4.2%.
Earnings releases for this week are particularly quiet with some consumer staples (Nike and Levi) releasing their earnings this week from the US. Duetche bank has lifted its price target for the stock from $92 to $95 due to the recent change in CRO of the company which is believed by many consumers that the company will have a turnaround. Levi reports is Q3 results projecting a slight improvement in both earnings and revenue which a forecast suggesting a rise of 2.6% YoY revenue. However, Levi will face higher volatility in their share price as rising inflation is threatening to curb consumers spending on discretionary items.
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.
Ping An Insurance (2318.HK): Bullish Setup By Donny Lew
Key Entry Price Pivot(s)
- HK$42.50
Recommended Trade
- Long at level HK$42.50
- Take Profit at HK$57
- Stop Loss at HK$35
Alternative Case
- Short below HK$35
- Take Profit at HK$30
- Stop loss at HK$40
Remarks
- Looking at the weekly chart of Ping An Insurance, we can see that the price has broken out from the trend line.
- Currently, we are waiting for the price to pull back at the support level at aroundHK$42.50. We can potentially look for a long trade at this level in a lower timeframe with confluence such as a bullish bar at the support level with significant volume.
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.
