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Weekly Market Ahead

 







Thoughts on the Week Ahead:
Week of 17 June 2024

"No Elon, No Tesla" – Tesla shareholders have spoken, with more than 70% approving Elon Musk’s pay package. With his position secured, the market will be looking for more commercial innovations from Tesla Inc.

In the US markets, over the past weeks, tech companies have outperformed the broader market, with a 38% gain compared to the broader market's 19% gain since 27 October 2023. Therefore, to achieve alpha or increase the probability of a higher win rate, positioning and tactical trades in technology companies are preferred.

The Straits Times Index (STI) retraced lower since hitting the 3,350 resistance level, with immediate support at 3,250.

The China Market (China A50) is in the technical support zone, and we are looking for more evidence of market demand to confirm any theory of a trend reversal.

Investors could consider adding to bond ETFs (e.g. ZROZ ETF) for both the US and Singapore markets in batches, as bond prices continue to display positive momentum amid a less hawkish outlook.

On tactical trades, we will lookout for long positions in US tech companies while remain cautious on the overall market. For China markets, we are looking for signs of bottoming. Lastly, we will be very selective with trades in the Singapore market.

Headlines for the week:
- US Market Close on Wed
- China LPR fixings
- SG May NODX Report, Market Close on Mon

Disclaimers apply

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