Major asset classes trading at technical support
Thoughts on Week Ahead:
Week 9 Oct 2023
The past week has been quite a turbulent ride in the stock market, as it grappled with mixed signals from economic data concerning the outlook for interest rates.
Investors are closely monitoring the current earnings reports to discern whether the robust economy can withstand a high-interest-rate environment. Positive earnings surprises could potentially aid in the market's recovery following a recent correction.
Aside from corporate earnings, investors are also keenly interested in the release of the US FOMC minutes, the US CPI report, China's trade figures, and Singapore's GDP data.
From a technical perspective, major asset classes like Gold, Oil, NASDAQ, and the S&P 500 have all reached their respective support levels, with minor support for the latter. We anticipate that bargain hunting will pick up steam, potentially leading to at least a short-term upward movement in the week ahead. Nevertheless, we remain cautious and watchful for any signs of increased supply entering the market.
For tactical trades, we aim to long technology stocks that have been beaten by recent interest rate pressure for the week ahead.
Headlines for Week Ahead:
US Corp Earnings (Financials, Fri)
US Birkenstock IPO (Litmus test on investor sentiment)
US FOMC Minutes
US Sept CPI Report
China Trade, CPI Report
SG 3Q23 GDP