Weekly Updates 4/12/23 – 8/12/23 December 4, 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 (27 Nov 2023 – 01 Dec 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 the US stock that just pulled off the 2nd best November in over 40 years amid growing optimism of Fed was done raising interest rates. Oil prices are up about 2% as OPEC+ deepen the supply cuts and a weaker US dollar. Also, Hong Kong stocks cap 4-month losing streak as weak China manufacturing adds to slowdown risk and fund outflows. The economic recovery is still going on at a weak pace.
Updates for the week (04 Dec 2023 – 08 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 Factory Orders, Labor market data (ADP Employment Change, Initial Jobless Claims, Change in NFP from the US and Trade Balance, Exports, CPI and PPI from China. Market participants are relying on Labor market data from the US to determine if there is any slowdown or signs of an imminent recession. Analysts expect to have a change in NFP of 180k, an increase from 150k prior. While China’s exports YOY are expected to improve to -0.9% from -6.4% prior. Showing potential stabilizing of the China economy. With expected CPI YoY to be -0.2%, potential for some Central Bank intervention.
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 Nio the Electric Vehicle maker listed on both US and HK stock exchange, Broadcom the semiconductor chip manufacturer from the US who enjoyed an impressive ~68% rally YTD and Lululemon the retail store that has been able to outperform its peers with an impressive ~44% YTD rally. Expect huge movements if there is any positive or negative surprises as market participants have high expectation of both the quarter results and forward guidance.
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.
Ping An Insurance (2318.HK): Reversal Trading Opportunity – by Donny Lew
Key Entry Price Pivot(s)
- Long at level HK$32
- Take profit at HK$50
- Stop loss at HK$29
- Short above HK$50
- Take profit at HK$40
- Stop loss at HK$55
- Looking at the weekly chart of Ping An insurance, we can see that price has been in a downwards trend channel.
- Currently, price is moving toward the support at HK$32 and we can potentially look for a Reversal trade (double bottom) to long in a lower timeframe with confluence such as a bullish bar at the support level with significant volume.
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.