Skip to main content

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

Popular posts from this blog

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.

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
  Thoughts on Week Ahead: Week 28 Aug 2023 Looking out for technical reversal indication Past week was an eventful one, with significant developments ranging from the arrest of former US President Donald Trump to BRICS expanding its membership to include financial powerhouses Saudi Arabia and the UAE. However, the focal point for the financial markets remained the speech by the US Federal Reserve Chair at Jackson Hole. The Chair highlighted that current economic condition is more favorable and hinted at holding rates during the Sept FOMC meeting, but also suggested a possible 25 basis points hike later in 2023, aligning with market expectations. Personal view, mixed rate outlook could suggest potential interest rate pivot (peak). Currently, both the S&P 500 and Hang Seng Index are in the process of establishing support levels at 4,300 and 17,800, respectively. We are closely monitoring these markets for signs of supply exhaustion, which would indicate a potential reversal. Intuit