Good Day to all and yes we’re in the month of November already! And did you know that November is a seasonally better month for the markets? Some reason could be markets corrected in the previous months, market also anticipating pick up in business for the year end which might translate into short term movement for share prices.
Singapore has also crossed the 5000 mark for covid cases, which we hope is a one time anomaly but it might be the norm in time to come too.
We’re hopeful for the month of Nov so lets dive into what we’re looking at.
Recap for STI & HSI
STI remains sluggish ever since touching our 3200 resistance with a slight touch near our next resistance of 3200. Although US made new high our market failed to push higher. Only banks were moving with other blue chips generally on the decline. As previously mentioned penny stocks continued to move up as focus shifted from blue chips to those small cap stocks. Energy stocks also saw a decline which might spell out some opportunities!
Over at Hong Kong, some what same story as HSI continued to be resisted by the resistance we drew. Mostly automakers were moving up while the tech stocks were declining. Also during the week, some China, US news caused some neagtive sentiments in the market.
Key Events to Watch For
Earnings continue to take center stage as Wall Street look to company’s earing for growth and the strength of economy. Forward statements are important as this tells us if the company is bullish going into the rest of the year.
Singapore banks will be reporting soon so that might give a boost to the market depending if they meet market expectation and whether their forward statements are positive.
ISM Manufacturing PMI for Oct on Monday (1st Nov) is one data to look at, ADP Nonfarm Employment Change, ISM Non- Manufacturing on Wed (3rd Nov)
FOMC statement and FED rate decision on 3rd Nov will be what market will be looking to for guidance. Then jobless claim on thursday and unemployment numbers on Friday to see the strength of US employment.
Also keep an eye on US and China tensions too.
Technical Levels to Watch For This Week
STI holding on to its short term uptrend line with resistance of at around 3200. If STI breaks that uptrend line we might see a pullback to the 20ema of around 3168. This is a healthy pullback to us and we’ll take the chance to trade some beaten counters. We cautioned not to be aggressive in our previous post as STI’s momentum started to slow down and nearing key resistance of 3200 where profit taking did come in. For now, we’re adopting a bit of wait and see approach with E stocks, Ifast, SATS all in our watchlist. =)
We’re also seeing weakness in the HSI with it hitting our resistance. It is currently at its first support which we think that it might break. We might see HSI moving lower for the week to around the 25k level. The 5ema is currently sloping down which is not a good sign if you’re long. So near term some weakness might come in. Tech stocks hasn’t stabilize yet as in our last post so we’ll continue to watch it for the week.
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!