Weekly Market Outlook

Week Ahead:

5 August 2024

Markets declined after the US unemployment rate climbed to 4.3%, intensifying recession concerns following a period of high-interest rate policies. Risk assets also suffered this week as a strengthening Yen unwound the popular carry trade strategy (borrowing Yen to invest in riskier assets).

The overall sentiment for equities deteriorated further as Buffett's Berkshire Hathaway reported a record-high cash position of $277 billion while simultaneously reducing its Apple Inc holdings by 50%.

The upcoming week is expected to be quiet in terms of economic data releases, with a few key corporate earnings reports scheduled. Technically, the S&P 500 is testing its 5,300 support level, and a short-term rebound is possible in this area.

While we do not have a specific trading setup at this time, we anticipate further inflows into bonds and high-quality REITs, as the interest rate environment eases.

Headlines for the week:
- US Corp Earnings (Caterpillar, Uber, Airbnb, Walt Disney, Eli Lilly, SoftBank, Venture Corp, SembCorp Ind, DBS, SGX)
- China CPI
- SG Holiday (Fri)

Disclaimers apply

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI), annual performance during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...

Week Ahead: US Indices Momemtum in Question

Week Ahead: 10 March 2025 Key event this week was U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX): The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI): The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply

Market Technician

Search This Blog