Weekly Updates 6/5/24 – 10/5/24 May 6, 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 (29 Apr 2024 – 03 May 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 Fed Chair Jerome Powell reassuring market participants on upcoming FOMC moves that rate hikes are not to be expected, however higher rates are to be expected for longer. Hang Seng index and Hang Seng Tech index continues its rally with more bullish sentiment from analysts and market participants. With positive earnings growth and more commitment from China government to support markets, HSI and HSTI rose significantly.
Updates for the week (06 May 2024 – 10 May 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
Upcoming week macro-news releases focuses on China Exports YoY and China PPI , CPI data coming out later in the week. With the recent rally in Chinese stocks and index, investors are keeping a close eye on key macro data like CPI and PPI to determine if the deflationary pressures are constrained and if the Chinese economy is back on track. There is not economic releases for US this week, however market participants should take note of the usual Initial Jobless Claims in case of any sudden surprises.
This week’s corporate earnings mainly focuses on US stocks such as Berkshire Hathaway, Palantir, Walt Disney, Uber, Robinhood and SG stocks like Thai Bev, SIA engineering and Fraser Logistics & Com Trust. With most of the major mega cap stocks already released earnings, market participants have adjusted their expectations on the large and medium cap stocks. With recent market moves due to fluctuations in bond yields, investors need to take note of both earnings releases 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. 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.
Exhaustion After Hitting Previous Highs? [OCBC Bank (O39)] – by Tan Peng Chien, Dealer
Key Entry Price Pivot(s)
- $14.38
Recommended Trade
- Short at $14.28
- Take Profit at $13.56
- Stop Loss at $14.47
Alternative Case
- Long at $14.30
- Take Profit at $14.60
- Stop Loss at $14.60
Remarks
- On the monthly chart, prices have surged beyond the previous high of $14.04, effectively sweeping liquidity from a pivotal level established over the past six years.
- Upon closer examination of the 30-minute chart, another liquidity sweep is discernible prior to the price retracement
- Given the occurrence of multiple liquidity sweeps across various timeframes, the likelihood of a price reversal is heightened. Coupled with the impending dividend ex-date scheduled for midweek, anticipations mount for additional sell-offs once traders and investors secure dividend payments.
- A prudent strategy entails vigilant monitoring of price dynamics, awaiting further confirmation before initiating short positions. Nonetheless, for those less concerned with capturing every market fluctuation, short positions may be initiated at current levels, targeting a decline to $13.56, with a stop-loss order set at $14.40.
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.
