Market Says US FED Is Done Hiking Rates

 








Market says US FED is done hiking rates

The stock market is signalling that the US Federal Reserve is finished raising interest rates. This has led to a rally in growth stocks, which are particularly sensitive to interest rates. We are optimistic about the short-term outlook for the S&P 500, but cautious about the long-term outlook for equities.

 

We believe that there are trading opportunities in the growth sector in the coming week, but investors should be aware of the high volatility of growth stocks.

 

The bond market, especially longer-term bonds, also rallied this week on the Fed's perceived message that it is halting rate hikes. Fixed income investors may want to consider averaging in at current levels.

 

In the week ahead, we will be looking for stocks to pull back before going long. We will also be looking at interest rate-sensitive stocks in the Hong Kong market.


Summary:

- The Fed is likely done hiking rates.

- Growth stocks are leading the rally.

- Cautious on long-term equities outlook.

- Watch for trading opportunities in growth and interest rate-sensitive stocks.

Headlines for Week Ahead:
Corp Earnings (BRK.B, HD, DBS, SIA, Capland Invest, OCBC)
US Daylight savings ends on 5 Nov
US US FED Chairman speaks
China Oct CPI


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

Markets searching for technical support

Image
  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
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