Expecting volatility to remain as earnings reporting slows

 



Expecting volatility to remain as earnings reporting slows
Latest earnings reports showed that Meta Platforms, Alphabet, Amazon, and Microsoft all reported strong earnings growth. This is a sign that software companies are able to weather economic storms and continue to generate profits.

On US credit rating downgrade, investors remain split. Some believe that the downgrade is a sign of underlying problems in the US economy, while others believe that it is largely symbolic. 

The S&P 500 is facing supply pressure and volatility. Our key support levels for the index are 4,400 and 4,300. We remain alert for bullish trading opportunities, as we take a cautious view on the market overall.

The Chinese market recovery is modest. We continue careful positioning into the Chinese market. The next sector expected to see recovery is the smaller cap growth sector. We believe that ChiNext ETFs such as CXS:SGX could move higher as the economy improves.

Headlines for Week Ahead:
US China Corp earnings (Alibaba, Sands China, PLTR, UPS, DIS, NetEase)
SG Corp earnings (Property Sector, Genting SP, Wilmar, AEM)
US CPI, PPI Reports
China Export and Import Data
China CPI
SG 2Q23 GDP (final)
SG National Day Holiday



Disclaimers apply

Popular posts from this blog

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week

Image
  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
Read more

Wyckoff's Law of Effort

Image
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.
Read more