Mag7 Narrowing & Week Ahead

Mag7 Narrowing & Week Ahead
Following the "Mag7" earnings announcements, the market saw mixed reactions. While Facebook (META), Amazon (AMZN), and NVDA gapped higher, momentum wasn't universal across the group. Notably, Netflix, outside the Mag7, also posted a positive post-earnings jump.

Our ongoing focus revolves around deciphering whether this momentum signifies a narrowing concentration of market strength or a broader market expansion. By closely monitoring earnings reports across various sectors, we aim to ascertain whether the market is evolving beyond its traditional reliance on the Technology and Communication sectors.

Shopify Inc (SPOT): In trading range, Demand increasing, potential upward to continue. Target at 95, stop at 70.

American Eagle Outfitters Inc (AEO): In trading range, Supply exhausting, potential increase in demand. Target at 21.70, then 23.66, stop at 19.80.

Key events this week:

Alibaba (BABA): Tune in for Alibaba's earnings on February 7th for valuable intel on Chinese consumer spending and insights into the country's economic health.

DBS Earnings: This key Singaporean bank's results, also announced on February 7th, will serve as a barometer for the local market's sentiment.

Lunar New Year Break:

Please note there will be no weekly market update next week as we in view of Lunar New Year weekend. We wish you all a joyous and prosperous year ahead. Headlines for the week: - US Corp Earnings (MCD, CAT, PLTR, PYPL, SPOT, BABA, DIS) - SG Corp Earnings (DBS) - Global PMI reports, US FED Chairman 60 Minutes interview on CBS - China CPI - SG Retail Sales

Disclaimers apply

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

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

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.

Market Technician

Search This Blog