Weekly Updates 4/3/24 – 8/3/24 March 4, 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 (26 Feb 2024 – 01 Mar 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 continuous bullish sentiment on AI themed stocks in the US markets, bringing Nasdaq 100 to yet another all time high. Nikkei 225 broke it’s all time high set in 1989, led by the chip sector and AI boom. US 10 year bonds yields drop as market participants have become more risk taking and bullish sentiment grows.
Updates for the week (04 Mar 2024 – 08 Mar 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week’s macro news mainly focuses on upcoming US Factory Orders, employment data (ADP Employment Change, Change in Non-Farm Payroll, Initial Jobless Claims and Unemployment rate) and Trade Balance. Employment data is closely monitored by both the Fed and market participants as one of the Fed’s mandates is to ensure maximum employment. On top of that, China is releasing CPI data on Saturday which is expected to be positive. Given that China was in deflation for recent months, positive inflation number is a good signal that China markets are taking a turn for the better.
This week’s corporate earnings focuses on tech and EV companies like Sea Limited, CrowdStrike, Oracle, BiliBili and Nio. With the recent rally in stock price for Sea Limited, market participants are eager to see Sea’s quarterly earnings, more importantly forward guidance, and company’s upcoming focus. Recent company earnings releases have been a hit or miss where average companies that surpass Wall Street estimates are greatly rewarded (+10+%) while the average companies that miss Wall Street estimates are punished severely (-10+%).
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): Bullish Trading Opportunity – by Donny Lew
Key Entry Price Pivot(s)
- HK$35
Recommended Trade
- Long at HK$35
- Stop Loss around HK$33
- Take Profit around HK$39
Alternative Case
- Short at HK$33
- Stop Loss around HK$35
- Take Profit around HK$30
Remarks
- Looking at the daily chart of Ping An insurance, we can see that price has been in a upwards trend channel.
- Currently, price is moving at the support level at HK$35 and 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.
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.
