Market Technician

  Netflix (NFLX) Upward Trend Expect to Continue Technically, Netflix is in a uptrend, with potential for further gains. The breakout above $711.33, coupled with steady price action, points to possible upside targets at $761.33 and $811.32. However, falling below $686 (cut loss level) would falsify the technical view.  The move is support by stronger US and European economic data released recently, pointing to a more resilient consumer market. Disclaimers apply.

  Can I Still Buy into This China Rally? Technical Picture: KWEB ETF (CSI China Internet Sector) signals a potential bullish reversal after a period of downtrend and consolidation. The breakout (Sign of Strength) above $36.04, accompanied by strong volume (FFI), suggests further upside potential, with targets in the $51.00 zone (and possibly $67.00), supported by Beijing's series of economic stimulus measures. Technically, the upward outlook remains valid as long as the price stays above $35.87. Investor Strategy: Using a 61% stop-loss strategy, an investor could consider entering a position in KWEB.  The next step would be to calculate how much risk they can tolerate if the price drops below the 61% retracement level (around $30.00), at which point the investor would exit the position, assuming a reversal in macroeconomic conditions. Disclaimers apply.

  Week Ahead, 7 Oct 2024 Actual Non-Farm Payroll (NFP) figure significantly exceeded consensus estimates, coming in at 60% higher. This stronger-than-expected labor market data increased the likelihood of a smaller, 25-basis-point interest rate cut by the Federal Reserve, compared to the more aggressive cuts anticipated by the market. Bond ETFs like TLT declined by 1.23%, while the S&P 500 reversed its earlier losses to close up 0.90% for the day. Upcoming earnings reports could provide additional momentum for the US stock market. While we remain cautious on the S&P 500, our technical target remains at 5,900-6,000 , as long as the index stays above the support level of 5,650. Meanwhile, the Chinese market is set to reopen on Tuesday. Social media channels indicate that many investors are eager to open brokerage accounts to participate in the potential rally. The China A50 index remains on an upward trend, approaching its first target at 14,300. The Hang Seng Index (HSI) is cu

  The Hang Seng Index (HSI) has outperformed the S&P 500 Index year-to-date.  We anticipate that more funds will flow into Chinese equities as long as the government's policies remain supportive and the Chinese equities market continues to generate alpha compared to the S&P 500 benchmark. Disclaimers apply

  Week Ahead, 30 Sept 2024 A month ago, the acronym ABC stood for "All But China." A month later, it became "All-in Buy China." The China A50 Index surged 22% for the week, and the Hang Seng Index (HSI) outperformed the S&P 500 year-to-date. These gains followed Beijing's announcement of forceful policies to stimulate economic growth ahead of China's Golden Week holiday. Using the China A50 Index, Our Cycle Indicator for China markets, has turned positive (bullish). Therefore, investors might consider allocating funds to ETFs such as MCHI (US-listed), 2800 or 2822 (HKEX-listed), or HST or YYY (SGX-listed), which track the broader Greater China markets. Psychologically, the current price level might seem "too high" for some investors. One strategy is to start with 25% of the intended allocation and gradually increase it over time or apply Dollar Cost Averaging (DCA). However, it's important to remain cautious. Markets will continue to monito

  Singapore Banks: Larger than usual sell off today. Banks could see short-term pullback or consolidation following their recent rally.  Disclaimers apply