No firework in China markets while US markets upward move continues
The previous week was relatively quiet due to the lack of significant macroeconomic data and the Thanksgiving Holiday, yet financial markets retained a positive trend.
The S&P 500 is nearing its July 23 high of 4,607. From a technical standpoint, we maintain an optimistic outlook, while closely monitoring any signs of weakness in the ongoing trend. Our technical target is set at 4,650 area, with support at 4,500.
Both the China and STI are currently operating within a downward channel. We are actively seeking signs of strength, such as a technical breakout from the trendline, before considering a more bullish stance on these markets.
Despite this, REITs sector in Hong Kong and Singapore appears attractive from an interest rate perspective. We are awaiting price pullbacks to identify entry opportunities.
Regarding tactical trading in the short term, we adopt a cautious approach but continues to seek LONG opportunities in the US markets. Concurrently, we are exercising selectivity in trading within the Hong Kong and Singapore markets.
Headlines for Week Ahead:
- Corp Earnings (PDD, Meituan)
- Tesla Cybertruck event
- US FED Chairman to speak and release of Beige Book report
- US PCE Report, ISM Mfg Report
- China PMI
- SG PMI