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

Straits Times Index – [The Road Ahead]

30th August, 2021, 7:00 AM

Straits Times Index – [The Road Ahead]Straits Times Index 30th Aug 2021

Chart Source: AdvisorXs 30th Aug 2021

Familiar with the NDP theme song the road ahead by now?  Such a hit and very relatable as Sinagporeans navigate through the road ahead with courage and determination.

So what’s the road ahead like for our Straits Times Index? Is is choppy? Or is it a smooth ride ahead?  Well, lets take a look at the chart to get some idea. From a technical analysis perspective, STI is currently sitting on its horizontal support of around 3080 level. This coincides with the support of around March but if this support doesn’t hold we might see a further leg down to 3050 and if weakness persist, 3020 is the area of the previous gap cover. 3020 would be a key support for us but we’re hoping it doesn’t go there.  For the upside, STI has to break our downtrend line first as a first sign of strength and also the 5ema of around 3100. That would signal strength and as Fed gets the market ready for its bond tapering this year, we are keeping track to see how other market reacts as the sentiments will flow over to Asia. Some upside resistance might be around 3120 then 3160 and 3200.

The road ahead might not be easy but with an extra pair of eyes, the journey need not be so arduous.

Want a pair of remisiers to help guide and guard against pitfalls? Or even receiving timely trading alerts on potential stocks?

Drop us a message to see how you can be included in our growing trading community.

Yours

Humbly

Kelwin&Roy

Straits Times Index -[ Time For Pullback? Here’s Why]

9th April, 2021, 7:07 AM

Straits Times Index -[ Time For Pullback? Here’s Why]Straits Times Index 9th April 2021

Chart Source: Poemsview 9th April 2021

The Straits Times Index (STI) finished Q1 2021 with about 11% gain and its the strongest first quarter of calendar year since 2012. Best of all, our Straits Times Index which was the worst performing index in Asia last year have actually came in as the second best performer amongst the 18 global stocks index! WE got a fighting spirit eh!

The key driver for STI’s performance was mainly due to the banks which takes up about 40% of our STI.

From a technical analysis point of view our STI actually closed below the 5ema which it has been closing above for the past few weeks. Well, its not panic mode for us but this might signal some pullback that is to come in the next few days or so. A healthy pullback is also welcomed as investors now complain everything being overvalued or expensive.

Some healthy levels to pullback to might be the 20ema or even that uptrend line of around 3119. If STI manages to punch above the 5ema again and break out of the current 3220 zone then it might signal the continuation of the uptrend.

Yours

Humbly

Kelwin&Roy

Straits Times Index – [ Where Is The Support At? What’s The Game Plan Now? ]

22nd May, 2020, 3:55 PM

Straits Times Index – [ Where Is The Support At? What’s The Game Plan Now? ]Straits Times Index - 22nd may 2020

Chart Source : poemsview 22nd May 2020

Its close to 4pm now and the Straits Times Index is down over 50 points due to China tightening its grip on HK.

Hong Kong index is down over 1000 points or 5%, something which we haven’t seen in awhile. Due to the regional unrest, our Straits Times Index or STI also is affected . We’re down about 2% at the time of writing.

So what’s our game plan? If you noticed we’ve been rather bearish on the markets and continue to remain so until we see more convincing signs of rebound. With every rebound in the STI it seems to be making a Lower High despite US side having massive gains. This to us shows some weakness. STI is currently on its horizontal support of around 2500.

What could happen from here? Some possible scenarios:

  1. STI could have a rebound to cover the gap and test the downtrend again. Failure to break that might see more downside. If STI manages to break that downtrend line then our stand might change.
  2. STI could break the horizontal support level and might take us to around 2387 levels.
  3. STI could possibly hover around here and form a sideways consolidation before another move comes.

So stay alert! We’re eyeing more downside as you can see STI is below the moving averages but are flexible to react as market remains volatile and remembering the saying, Don’t Fight The Feds!

Want a  quick discussion on the market direction?

Feel free to drop us a line!

Yours

Humbly

Kelwin&Roy

Straits Times Index – [ Has It Peaked? More Room For Upside?? ]

19th April, 2020, 9:36 PM

Straits Times Index – [ Has It Peaked? More Room For Upside?? ]Straits Times Index 19th April 2020

Chart Source: Poemsview 19th April 2020

Straits  Times Index or STI had a very good  rebound which caught many off guard. The rebound was about 20% from the low which was slightly stronger than expected. The question is can STI move up more? Is there still room to go for STI?

Before we dive  further, we’ll bring in the chart of S&P as markets still takes some reference from big brother USA.

Using the weekly chart for S&P, we feel that there might be just be more room for an upside probably to the 50ema which is around 2960 level for S&P, if it does reach around there , we have to be very very careful already. That would mean that S&P would have rebound 35% off the low which is considered a lot. But that said, we are in extraordinary times and such a bounce is also an extraordinary bounce.

So if S&P still has some upside, we might see STI slowly trying to aim for its 50ema too which is around 2720 and also the fibo 50% retracement level.  If STI can rally to around that area, we’ll be looking for SHORT opportunities. The risk reward for longs now is not very favourable (in our view) so we’ll probably be patiently looking for short opportunities instead.

Looking for Short opportunities but not sure how to go about doing it? Not sure how to short or not sure what instrument to use for for shorting? Want to learn how to use CFD (Contract for difference) to short the market?

Don’t be shy and just drop us a message and we’ll be glad to answer them!

Yours

Humbly

Kelwin&Roy

 

 

STI Updates – [ Support & Resistance Levels]

14th March, 2020, 10:28 PM

STI Updates – [ Support & Resistance Levels]Straits Times Index - 14th March 2020

Chart Source: poemsview 14th March 2020

What a week right? A rough week would probably be an understatement! Oil crashed, Dow crashed, Yield crash, limit down, limit up and there is still no sign of Covid-19 letting up.

But hold steady and lets have faith that we’ll get through this together. By now, we’re sure Covid-19 is no stranger to the world. Its been grabbing headlines for all the wrong reason and markets are plunging due to fear of how this virus will impact the economy. We’ll still continue to look at our charts to find some clues on when the selling might subside or when a technical rebound might come.

For our STI, we have drawn some support and resistance levels and will be using it as a guide to try to navigate through this crazy times. The first support we see is at around 2510 level, the low of 2016. It had some rebound from there on friday and a good rebound might see STI to close to 2700. We’ll take things step by step for now and after 2700 then 2750 area. The support for us is at 2510 then 2415.  No one can tell when the market will bottom or where the top is therefore its important to have the right mentality when investing or trading.

Don’t fish for the bottom but plan your investment in batches.

Take care when trading and its always good to have an extra pair of eyes to look out for especially during this period.

Have you prepared your shopping list? Drop us a message and we can discuss more.

Yours

Humbly

Kelwin&Roy

 

 

Straits Times Index – [ 4 Down Days Wiping Out Almost 2 Months Of Gains, What Can A Trader Do?]

5th August, 2019, 9:35 PM

Straits Times Index – [ 4 Down Days Wiping Out Almost 2 Months Of Gains, What Can A Trader Do?]Straits Times Index 5th Aug 2019

Chart Source: Poemsview 5th Aug 2019

Straits Times Index took a huge plunge of about 5% since it started to fall on Wednesday. In 4 days of fall it nearly took out 2 months of gain in the STI. When panic spreads, it goes beyond any rationale. If a trader only knows how to go long in the market then he or she would be in big trouble.

That is why we’ll be conducting a workshop on 20th Aug (Tuesday) to coach and guide why using CFDs is vital in staying afloat in today’s market.

Knowing only how to Long and not SHORT would put a trader in a severe disadvantage as he or she can only trade in one direction. Hence it is of utmost importance to equip oneself with the knowledge and tool for shorting to hedge and manage market volatility .

Not only does Poems CFDs allow you to long or short the market it also allows you to trade our Straits Times Index. In fact, Poems CFD is the only CFD provider in singapore to provide the STI. So if you’re unsure of which stock to trade, there is always the Straits Times Index to trade.

Sign up via the link now!

https://www.eventbrite.sg/e/trade-war-interest-rate-cut-how-to-use-cfd-moving-average-to-manage-current-volatile-market-tickets-67919419813

We’ll see you there!

Yours

Humbly

Kelwin&Roy

Straits Times Index – [ Our Take On It And Our Game Plan]

5th June, 2019, 9:23 PM

Straits Times Index – [ Our Take On It And Our Game Plan]

Straits Times Index 5th June 2019

Chart Source: Poemsview 5th June 2019

Straits  Times Index had a terrible May and fulfilled the saying of Sell and Go Away in May. Our index has fallen 8.5% since the start of May but things might start looking up.

We have drawn two charts with the first stretching out from 10 years and drawing a long term uptrend line. So far that point hasn’t been tested which is around 3080 area.

Something to take note is that the bounce from 2016 and the bounce off that long term uptrend line in 2018 seems shorter now. Every bounce is shorter which to us is not a good sign. What might happen is that is uptrend line might be tested and a rebound might happen but we’ll be watching to see the strength of the rebound.

On a shorter time frame, the immediate support is around 3100 which is the short term uptrend line which we have drawn. We would like it to test that area and then rebound which would then complete this downward cycle and allow for a nicer rebound. With Dow having such a strong finish on tuesday night good chance we might see our Straits Times Index doing some catch up.

A good bounce to the 200ma might be the next resistance before we plan our next move. Should more good news follow like trade wars being resolved or more talks that could provide some underlying strength to the market. Or the recent rate cut which the fed seems to be signalling to the market. Most stocks have seen a brutal sell down and might be ready for a rebound.

So do be prepared as we markets remain volatile. So Sit Tight and tread carefully.

Do CONTACT US if you want to know more.

Yours

Humbly

Kelwin&Roy