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Weekly Market Outlook

  Thoughts on the Week Ahead: Week of July 22, 2024 TSMC’s revenue increased by 40% year-over-year, yet its stock price declined by 3.55% for the day. Similarly, Netflix Inc. saw a 17% revenue increase but experienced a 1.51% stock price drop. Several factors could be contributing to the market’s volatility. These include valuations in the tech sector, interest rate expectations, and the potential impact of a Donald Trump re-election on taxes. We anticipate similar market behaviour this week as other tech giants release their earnings reports. There are currently no significant technical patterns suggesting a market reversal. Therefore, we will monitor sell-offs and wait for price stabilization before entering trades. Despite a recovery in the China A50 index, Hong Kong markets have not followed suit. Investor enthusiasm for Chinese markets remains subdued. The upcoming earnings season may offer more clarity on the equity market's direction. The Singapore market has weakened, and
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hang Seng Index (HSI) and Tencent Heading Higher

  Hang Seng Index (HSI) and Tencent (700) broke out of trading range. We expect both to head higher towards their respective targets. Disclaimers apply
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Weekly Market Outlook

  Thoughts on the Week Ahead:  Week of July 15, 2024 Following the release of the CPI data, the market now prices a 90.30% chance of a 25 basis point (bps) rate cut at the US FOMC meeting on Sept 18th . We have also observed a market rotation towards disinflationary trades. Here are some interest rate-sensitive asset classes, sectors, and markets that moved higher after the CPI report: •  Bonds (e.g., TLT, ZROZ) •  US Growth/Small Cap (e.g., IWM) •  Global REITs (e.g., SCHH, CFA) •  Utilities Sector (e.g., XLU) •  China and Hang Seng Indices (short-selling curbs also contributed to their rise) A Note on PPI It is important to note that Friday's US Producer Price Index (PPI) report did not decline in line with CPI. PPI is a leading indicator of US inflation. Short-Term Tactical for the Week Ahead Given the mixed signals, our strategy for the coming week will be cautious and selective for the US and Singapore markets. We favour the Hong Kong market. In the Longer Term A fall
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AMD Expecting to Exit Trading Range

  AMD: The upcoming earnings report could drive AMD's stock price higher as the AI theme continues to play out. Technically, if the price crosses above $175, there is an expectation for the share price to retest the previous high of $208. The stop is set below $154.   Disclaimers apply.
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Tesla Out of Technical Downward Momentum

  Tesla Inc (TSLA): Technically, Tesla's stock has exited its downtrend, and a potential reversal towards bullish momentum. However, we require more evidence of demand from trading actions. The first target is set at $300, with a stop at $177.   Disclaimers apply.
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Gold Heading Higher

  Gold: Technically, there is an expectation for the precious metal to retest the high of $2,450 as the market anticipates the US Fed to cut rates due to more subdued inflation and some weakness within the jobs market.   Disclaimers apply.
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