The Week Ahead (3) – [STI, HSI, NASDAQ & S&P]

17th October, 2021, 10:20 PM

Image source: goodmorningfun.com

The week is starting soon and we hope you’re not feeling the blues as market is starting to come back to live and things are starting to heat up!

Recap for STI & HSI 

For our local market, as mentioned in our previous post, banks earnings over in the US gave a push to our local banks, especially for OCBC and UOB.

Electronic stocks also saw some rebound as the 10 year yield curve started to ease up. Nasdaq also had a rebound bringing further positivity to the markets. Energy stocks saw some pullback which is healthy while oil stocks pushed further up.

As for the Hong Kong market, it only traded for three days as it was closed for a day due to typhoon warning and one day due to Chung Yeung Festival. Overall, EVs , tech stock saw a rebound in the HK market while HSI moved up to our initial target.

Key Events to Watch For 

1.Earnings! Earnings have kicked off in the US and dozens of companies will be reporting in the coming week, including Tesla (NASDAQ:TSLA), Intel (NASDAQ:INTC) and Johnson & Johnson (NYSE:JNJ), as the first major wave of third quarter earnings results gets underway.

On Thursday Netflix will kicks off third quarter reporting for the ‘FAANG’ group of U.S. tech giants Facebook , Apple  Amazon.

Take note of earnings in Singapore too.!

2 Chinese GDP! On Monday, the third quarter gross domestic product for China will be released alongside with the factory production and retail sales. These are data to see the health of the economy and economist are expecting growth of around 5.2%. If it comes below then market might have some reaction to it depending on how bad the numbers are, but if it jumps on the upside it could spark more upside as this might signal recovery for the world’s second largest market.

3. U.S data he U.S. is to release data on industrial production on Monday followed by reports on buiding permits and housing starts on Tuesday.

4. Bitcon futures ETF! For those interested to get your hands on bitcoin this ETF might provide an avenue for it. The first U.S listed futures ETF are set to launch in the coming week barring any last minute objection from the SEC.

The ProShares Bitcoin Exchange Traded Fund is scheduled to start trading on the New York Stock Exchange on Tuesday. A day later, the Invesco Bitcoin Strategy ETF, would also be allowed to launch unless the SEC blocks it.The ETFs will be based on bitcoin futures that already trade on the Chicago Mercantile Exchange rather than the cryptocurrency itself amid regulatory concerns over a potential lack of liquidity and the risk of price manipulation on spot exchanges.

5. Take note of the 10 year yield too. It did move up on Friday. Don’t overlook this point.

Technical Levels to Watch For This Week

Straits Times Index 17th Oct 2021

Image source: AdvisorXs 17th Oct 2021

STI saw a nice rebound of about 60 points when it broke our resistance line last week . It reached our upside of 3160 on the back on our banks moving, Jardine and Venture having share buy backs . With renewed interest of opening up, this also has caused aviation stocks to move up but we prefer a pullback now before entering. Positive sentiments continue to flow and we might see our next resistance target of around 3200.

HSI

HSI also saw some bounce on a shorter week hitting our first resistance. The closing bar on Friday was a nice pin bar candle. As we see US side closing strong and the S&P cutting above its downtrend line. This could bring more positive movement as the bulls look to overcome the bears in the coming week. Watching HSI to break that resistance of around 25404. If that breaks, our next upside resistance would be 26209.

Trade safe and remember to have a sound trade plan!

To know more about the outlook for S&P and Nasdaq, just CLICK HERE!

Have a good week ahead! Drop us a message if you want to discuss further!

Yours

Humbly

Kelwin&Roy

The Week Ahead (2) – [STI, HSI, NASDAQ & S&P]

10th October, 2021, 10:26 PM

Image source: Shutterstock.com

We hope you are well rested and ready for the week ahead.  As we ahead into another week lets do a recap and see what next week might bring.

Recap for STI & HSI 

For our local market, STI fought hard despite a few negative session over in the US. Energy,Oil, hospitality and covid related counters took center stage last week. Counters like Golden Energy, First Resource, Wilmar, Sats, Q&M Dental, Raffles Medical saw upside last week.

As for the HSI,  it was trying to find its footing as tech stocks saw some recovery as market is starting to absorb the bad news of  Evergrande and tech regulations.

Key Events to Watch For 

Over the weekend, our government gave more clarity in our battle with Covid , highlighting simplified healthcare protocols and the need for our mental attitude towards Covid. We’re slowly moving forward and becoming a Nation living with Covid. Recovery plays liek SATS, hospitality reits might continue to be in play. Energy and oil counters are also currently in play too.

Some events to watch out for overseas

1. Some of the World’s biggest banks will also kick off their Quarter 3 earnings season with Banks such as JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs reporting their earnings this week.
2. The key U.S. economic report to watch this week is Wednesday’s data on consumer price inflation for September.
3. The Fed is to publish its September meeting minutes on Wednesday amid expectations that it will begin tapering asset purchases before the end of this year, an important first step towards eventual rate hikes.
4. Annual meetings of the World Bank and the IMF get underway Monday, where officials will discuss the global economy, the ongoing COVID-19 pandemic and global taxation issues.
Technical Levels to Watch For
image source: AdvisorXS 10th Oct 2021

For STI, the support of 3024 held and we saw it break our short term downtrend line but resisted by the horizontal resistance previously mentioned at 3112. This week would be interesting as we watch and see if this resistance would break. If this breaks we might we a nice rebound for the week, our upside resistance is around 3160.

For HSI ,it has also broken the short term downtrend as the buying overcame the selling despite negative news which is a positive sign to us once again. It has reached some resistance around 25k and a clear break with a bullish bar might see more upside to around 26k with short term resistance in its path. Inflation fears, bad results earnings from US side might have negative sentiments so do watch out for it.

To know more about the outlook for S&P and Nasdaq, just CLICK HERE!

Have a good week ahead! Drop us a message if you want to discuss further!

Yours

Humbly

Kelwin&Roy

 

The Week Ahead – [STI, HSI, NASDAQ & S&P]

3rd October, 2021, 10:39 PM

We will be doing new series called The Week Ahead where we’ll share a weekly update on S&P500, Nasdaq , Hang Seng Index (Hongkong) and Straits Times Index ( Singapore) on our facebook and blog. We’ll recap what has happened to the markets , key events to look for during the week and  finally  some technical points to look out for in the coming weeks

Recap for STI & HSI 

For our local market, our sentiments continue to remain weak as it is affected by regional markets like HSI and of course USA. With inflation fears and rising 10 years treasury rates, this has continue to affect the sentiments over here. In addition, covid cases are rising in Singapore which adds another damper to our trading climate.

As for the HSI,  worries about the fallout of  Evergrande continues to spook the market affecting Furthermore regulatory concerns over the big tech players like Alibaba, Tencent and Meituan continues to weigh on the markets. But there has been surprising strength in the underlying market as every time when HSI opens lower it manages to have a good closing. Selling pressure seems to be meeting with more buying.

Key Events to Watch For 

A good news that came out where Merck said its new Covid pill reduces the risk of hospitalization, death by half for some patients. This could help lift sentiments especially for recovery stocks like SATS and SIA. Market will still be looking at the 10 year treasury yield for signs of inflation and interest rates.

Technical Levels to Watch For

Image source: AdvisorXs

For STI, it is still a range bound of around 3024 as the support (lower range) and 3112 resistance (upper range) . It is below the 20 and 50ema and the 20ema is below the 50ema which is a bearish sign. So STI has to hold the support of 3024 if not we might see a further downside to even 2928. There is also a short term downtrend line for it to overcome if we want to see any upside movement. A clearer sign would be for STI to break above 3112.

 

For HSI, technically still weak as it is below its 20 and 50ema. support at around 23672 and if that can’t hold then we might see it move lower to 23163 or even 22382. Interestingly HSI has been holding up well despite the pullback that is happening over in the USA and evergrande’s bearish sentiments. If the index manages to hold and break above the 25k resistance, we might see some rebound in the coming week which could take it up to around 25757.

To know more about the outlook for S&P and Nasdaq, just CLICK HERE! 

Have a good week ahead! Drop us a message if you want to discuss further!

Yours

Humbly

Kelwin&Roy