Skip to main content

Week Ahead: The New ABC stands for "All-in Buy China"?

 




Week Ahead, 30 Sept 2024

A month ago, the acronym ABC stood for "All But China." A month later, it became "All-in Buy China." The China A50 Index surged 22% for the week, and the Hang Seng Index (HSI) outperformed the S&P 500 year-to-date. These gains followed Beijing's announcement of forceful policies to stimulate economic growth ahead of China's Golden Week holiday.

Using the China A50 Index, Our Cycle Indicator for China markets, has turned positive (bullish). Therefore, investors might consider allocating funds to ETFs such as MCHI (US-listed), 2800 or 2822 (HKEX-listed), or HST or YYY (SGX-listed), which track the broader Greater China markets.

Psychologically, the current price level might seem "too high" for some investors. One strategy is to start with 25% of the intended allocation and gradually increase it over time or apply Dollar Cost Averaging (DCA).

However, it's important to remain cautious. Markets will continue to monitor the Chinese government's commitment to economic growth. Any setbacks could lead to a market pullback.

The S&P 500 (SPX) rose this week, closing at 5,738.16. While we have a technical target of 5,885, we're cautious about the week ahead for SPX as the third quarter of 2024 ends and companies report their earnings.

Japan's Nikkei 225 futures fell 4.55% on Friday following a change in leadership. Markets may be concerned about uncertainty surrounding the new government's interest rate and currency policies. The hawkish rate hike in August caused the Nikkei to plummet 26%, dragging down global markets. Therefore, we're monitoring this situation closely.

Headlines for the week:
- US Aug Jobs Report, FOMC Chair Powell to speak 
- China Golden Week Holiday
- SG Aug PMI

Disclaimers apply

Most Popular

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

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...

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...