Thoughts on Week Ahead 13 Feb 2023: Analysts Recommendation Revision, next market driver?

Thoughts on Week Ahead:

Week 13 Feb 23

Analysts Recommendation Revision, next market driver?

Market Recap

Markets experienced a volatile week, S&P500 -1.11%, HSI -2.17%, due to uncertainty surrounding US FED interest rate policy. Dollar Index +0.57% spiked, causing a sell-off in some markets. Despite the selloffs and news headlines, market expectations for Fed fund futures remained at 5.25% for 2023.

Outlook for the Week Ahead

Volatility is expected to persist, particularly in HK and China. Meanwhile, US and SG markets are likely to experience sideways trading. DBS' results on Monday could set the direction for STI.

Analysts could revise their target prices and ratings, following a year of downgrades, as China reopening is expected to have a ripple effect on more industries and markets.

Weekly Investment Strategy

We see recent market correction as an opportunity to pick up quality names in the market. As long as markets do not breach key support levels, we are using this sell-off as a buying opportunity.

Following is link to stocks' Year to date performance for SG,HK and US markets. Overall investors seems picking up tech, travel related and consumer discretionary sectors. Likely rational, valuations becomes more reasonable and China reopen theme.

https://docs.google.com/spreadsheets/d/1ND3f5ZZyph6O_tM9sTaT4hI8ukTpoqdu/edit?usp=sharing&ouid=101538497175344321065&rtpof=true&sd=true

Blog disclaimer applies

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week The week ahead is shaping up to be a busy one for the markets, with the Federal Open Market Committee (FOMC) meeting and earnings season taking center stage. The FOMC is widely expected to raise interest rates by 25 basis points on Wednesday, in an effort to combat inflation. This will be the first rate hike after June's pause, and investors will be closely watching the accompanying statement for any clues about the pace of future rate hikes. Earnings season is also in full swing, with more than 100 companies in the S&P 500 scheduled to report results this week. Investors will be looking for signs of how companies are weathering the current economic and geopolitical challenges. In the meantime, China markets appear to be stabilizing, with the yuan holding steady against the dollar below 7.25 and KweiChow Moutai (600519), a vital component of the China A50 index, which displays strength by breaking out

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

Markets searching for technical support

Thoughts on Week Ahead: Week 21 Aug 2023 Markets searching for technical support US FOMC minutes have confirmed market’s fear of a hawkish US FED. This fear has triggered a continued sell-off in global equities over the past week. China economy and policy did not help too much either. China Evergrande filed for chapter 11 in US while Country Garden future remain uncertain as investors continue to keep an eye for a more aggressive policy from Beijing to support the economy and people’s confidence. From a technical perspective, markets are searching for technical support levels, where bargain hunters are willing to come in. Support levels are 4,300 for S&P 500 and 3,130 for STI. For the week ahead, market participants will be zooming in on US FED Chair Powell’s speech at the Jackson Hole meeting. We did not uncover trading (tactical) set up for the week ahead and will update once we identify any. Have a great trading week ahead. Headlines for Week Ahead: Key corp earnings (Nvidia

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