Market Technician

  SIA (C6L): At technical support, expecting rebound  Price is trading at support-turned-resistance S$5.60 level.  Price holding above this level could see SIA trading higher technically towards S$6.06, with next target at S$6.86. Blog disclaimers apply

  Thoughts on Week Ahead: Week 20 Mar 2023 The US Federal Reserve recently injected liquidity into the financial system in an effort to stabilize the banking sector, and market is expecting a 25bps rate hike from the FOMC this Wednesday. Meanwhile, the technology and semiconductor sectors have continued to outperform, while Chinese banks have been quietly rising due to government efforts to boost economic growth. Investors are diversifying into gold , which has risen 5.96% as the market prices in a potential peak in the interest rate cycle and a resulting softening of the USD. In the travel industry, stocks within the theme are experiencing more price stability and demand as countries prepare for an expected increase in Chinese arrivals in the coming quarters. For example, Beijing Capital International Airport (694), which we shared, recently reached our target price. Overall, while there are some positive trends in the market, it's important to consider potential risks and op

SVB fall out has prompted investors to consider the effects of high interest rates. We are keeping a close eye on buyout or any bailout. • List of tech companies exposed to SVB , https://www.tipranks.com/news/silicon-valley-bank-the-aftermath-of-the-closure-and-impacted-companies • In response to the current market conditions, many investors diversifying into safe haven assets such as Gold and Treasury Bonds. • Since SVB incident, outlook for interest rates has softened somewhat, 2yrs treasury fall sharply on Friday. • SVB fall out likely to be contained within specific industries. Larger banks C, BAC, and WFC are oversold, technical hidden buying observed. • We are monitoring the potential effects on various asset classes, as well as the US dollar and the Chinese renminbi after recent Iran-Saudi peace deal. Headlines for Week Ahead: SVB fallout development, US CPI, China Retail Sales and Industrial Productions, SG NODX, Corp Earnings (ADBE, Ping An Insurance, Pinduoduo) Gold ET

  Sign of Strength Beijing Cap Intl Airport (694:HK): Expecting price to trade towards its HK$6.40 range resistance or potentially higher if range breakout observed. Stop below HK$5.80. Blog Disclaimers apply

While higher rates may have negative impacts on equity portfolios in the long run, such as economic weakness or investors moving away from equities, I do not see this affecting the stock market yet.  The markets are still receiving substantial support from t he large amount of liquidity   generated by  US central bank  during the pandemic , and we are currently only -12% off from the peak stimulus provided by the US Federal Reserve. Last week, global markets including S&P 500, HSI, and China A50 bounced off the forecasted 38.2% retracement level. The markets are still showing a bias towards the upside, but I like to also warn against potential short-term volatility. Moving Forward, my portfolio strategy continues to focus on adding stocks and seeking out short-term trading opportunities during market weaknesses. Disclaimers apply

  The equity market has been adversely affected by uncertainties surrounding interest rate hikes, causing it to decline. However, this decline has brought the S&P 500 and Hang Seng Index closer to their respective key support levels of 3,900 and 19,500. Following the release of hot PCE data on Friday, the market is now pricing in a peak US FED rate hike of 5.50% for the rest of 2023, which is being driven by strong US consumer spending. As a result, there is an interest in closely monitoring the technical price action at the above-mentioned support levels. Currently, there are no trading ideas for the upcoming week, but there is a preference for companies that focus on AI-related and reopening themes. Disclaimers apply