Weekly Updates 4/9/23 – 8/9/23 September 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 (28 Aug 2023 – 01 Sep 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 macro data like job’s report coming out of the US suggesting that the US economy is more likely to head towards a “Soft Landing” and that the Fed is expected to end its rate hiking cycle soon. Currently bond markets are pricing in a 94% chance that the Fed will keep interest rates unchanged in Sept meeting.
Updates for the week (04 Sep 2023 – 08 Sep 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 and Durable Goods Orders coming out of the US and key macro data coming out of China on Thursday and Saturday morning. With weaker than expected macro data coming out of China, all eyes are on upcoming data releases especially CPI data that dipped in to deflation territory in July.
This week’s corporate earnings focuses on US companies like C3.ai, DocuSign and meme stock GameStop. With the recent bull run on AI stocks, C3.ai has enjoyed an impressive 182.02% Year to Date gain in stock price, investors are keen to find out if the growth narrative is still intact through its quarterly earnings report.
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.
Geely (HK.0175): Mean Reversion Play – By Sean Ng
Key Entry Price Pivot(s):
- $10.00
Recommended Trade:
- Short below $10.00, take profit at $9.00, stop loss at $10.20
Alternative Case:
- Long above $10.20 take profit at $11.64, stop loss at $9.90
Remarks:
- Geely has been consolidating in a range since March 2023
- It recently broke to the upside out of the range, but failed to make a higher high, returned back to the range and continued consolidating
- It has recently shown signs of a pull back again within the pink channel
- The 20/50/100 exponential moving averages continue to remain flat
- RSI also shows early signs of downward momentum
- We potentially can look to play a mean reversion trade off the edges of the range
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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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.
