Weekly Updates 7/10/24 – 11/10/24 October 8, 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 (30 Sept – 04 Oct 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 better than expected US unemployment data. Unemployment rate fell to 4.1% while non-farm employment change almost doubled. Bond rates have slightly inched on Friday due to the unemployment data. Hong Kong stocks have rallied from China’s stimulus with the Hang Seng Index gaining more than 30% from its 2024 yearly low. Japan’s PM Ishiba emphasizes on ending deflation decisively in his speech last Friday. BOJ is looking to increase interest rates but not in the near future, according to BOJ.
Updates for the week (07 Oct – 11 Oct 2024)
The data below showing the economic releases read as “Analyst’s estimate/ Consensus | Previous data”.
This week ahead the US is releasing their monthly and yearly CPI data as the Federal Reserve (Fed) targets inflation to be around 2%. After the 50 bp rate cuts in September, markets have priced in the forecasted cut of another 25 bp similar to policy makers’ expectation of 25 by. However, due to the surprisingly strong job report in Sept has sowed market doubts on a rate cut in November FOMC meeting thus market participants are expecting the Fed to adopt a more hawkish tone which would led to a possible outsize rate cut. Singapore’s GDP data release is expected at 3.1%, a steady growth since 2023 QoQ; also boosted by the recent economic growth in the South East Asian markets.
Earnings releases for this week are mainly from the US as financial institutions like JP Morgan, Wells Fargo and Blackrock are releasing their Q3 earnings. Traders are laying their eyes on these companies as they are to set the tone for the banking industry. The widely known consensus outlook is important for the market participants to assess the company’s earnings picture as Fed have lowered interest rate thus market participants are looking for clues on how this may boost profits for big US banks.
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. If you hold equity positions in these stocks, you can hedge your positions using CFDs to mitigate the risk of disappointing earnings releases.
Nvidia Triangle Formation by Jun Yuan Kwong
Key Entry Price Pivot(s)
- 121.8
Recommended Trade
- Short at level 121.8
- Take profit at 113
- Stop loss at 128
Alternative Case
- Long at level 128.5
- Take profit at 185.5
- Stop loss at 100
Remarks
- Observing the daily chart of NVDA, the price is currently in a triangle formation.
- The price is rejecting the triangle’s resistance, suggesting a possible move towards the support. A minor double top may form.
- Traders should wait for a confirmed bearish bar before entering a sell trade.
- For traders bullish on NVDA, a trend resumption trade is possible. They can join the breakout at the previous high, ideally waiting for a confirmed bullish bar closing above that level.
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 (Assistant Manager, 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.
