Month: January 2022

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , ,
30th January, 2022, 4:04 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Crazy week with crazy volatility as the S&P swung from red to green and green to red. Many stop loss were hit along the way and it was probably a tough time for short term traders but for the long term investors, it was a golden opportunity to pick up quality stock at a bargain. The hawkish fed pushed market further down after its statement BUT once again markets looks like its holding up pretty well! Read on to find out our thoughts on the market.

Key Events to Watch For 

Tuesday – U.S ISM Manufacturing purchasing Managers Index

Wednesday – Crude Oil Inventories , ADP Nonfarm Employment Change

Thursday – ISM Non-Manufacturing PMI

Friday – Nonfarm  Payrolls

There are many big earnings coming out this week like Alphabet, Starbucks, Meta so do take note of your companies which are releasing results this week.

Technical Levels to Watch For This Week

STI

Its going to be a relatively short week for Singapore market as she breaks for the Chinese New Year holidays.

Singapore market will be on half day on 31st Jan , closed on 1st and 2nd Feb and will be open on 3rd Feb (Thursday). Volumes are expected to be lesser as traders will probably take off and rest for the week.

STI has come down to our first level of support which we mentioned last week. Banks pulled back with the only exception of OCBC powering through the week playing catch up. We still waiting for further pullback before making any moves in Singapore. STI testing the 3200 support area might be a good chance to look at the Singapore markets again.

Sembcorp Industries has been holding up very well and the E- stocks are seeing a rebound after a hard slam down.

HSI

Hong Kong will have an even longer break. Opening on 31st Jan for half a day and will be closed all the way till Thursday (3rd Feb) and finally opening on 4th Feb. With just around one day of trading, markets could be softer and we’re looking. HSI came off together with the global negative sentiments and is currently sitting on the short term uptrend line. We’re expecting a bit more pullback before a rebound comes. We’re still bullish on HSI.

The S&P 500 and Nasdaq are currently trying to find a base and its been a good opportunity for investors to scale in to quality companies. Not sure of what companies to look out for? Just drop us a message.

For more analysis on the US market and where it might head to, you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

7 Reminders During A Correction

Kelwin & Roy Stock Market
27th January, 2022, 5:12 PM

7 Reminders During A Correction

To put things into perspective, in 2021 we didn’t have any major correction, just about 8 shallow pullback of about 5-8%. So when it might get uncomfortable with a correction but we’ve written something to help

7 Things To Remind Ourselves During A Market Correction:

As the market corrects months before the first rate hike, these are some things we might want to remind ourselves:

1. When market was up and we wanted to chase the price to buy a good company stock, now that prices have retraced, why are we fearful and running away? What has fundamentally changed?

2. Define your investment horizon. Remember, whenever you’re investing, it should be funds you don’t intend to spend in the next 4-5 years. And if this fund is for the long term then learn to endure pullback, corrections and crashes. Funds meant for short term usage shouldn’t be used to invest.

3. Huge gains are made during the pullbacks and volatility. Imagine if you got in around march 2020. =)

4. Going through a correction is one of the toughest things to do, with media outlet splashing doomsday news, things always feels like they’re going to worsen. Hold strong and believe in your conviction.

5. The benefit of having a long time horizon is that you don’t have to try to time the bottom when buying in a sell off. No one can time the bottom, if they could it’s probably luck or they’re lying.

6. Every sell off is a buying opportunity. From history, with every sell off, market moves higher. S&P is higher now as compared to 2020’s crash.

7. The reason for a sell off doesn’t really matter. There can be a thousand and one reason why market is selling off. Fed rate hike, inflation, coivd-19, political tension, Ukraine/Russia tension. In a grand scheme of things, these could be noise to the markets and markets will find ways to resolve it. Market could be throwing a tantrum, who knows?

As always, if you have any questions feel free to drop us a message.

From Kelwin & Roy

TESLA – [ A Bargain Now? ]

Kelwin & Roy Tesla ,
25th January, 2022, 7:56 PM

TESLA – [ A Bargain Now? ]

Chart Source: Tradingview.com 25th Jan 2022

Tesla has pullback about 30% since its high Nov after Hertz order and back in Dec when they gave out its quarterly delivery figure which blew the analyst expectation.

What’s next for Tesla? It’s upcoming results after market on Wednesday. The results are expected to be good which might be one of the catalyst to push TESLA up. With the opening of Tesla’s Giga factory in Austin and Berlin, these are going to be an additional catalyst pushing Tesla to new heights.

So what should we do before results? We usually don’t advocate a TRADE before results as we never know how market will react to results. But if you’re investing, its a little different. As tesla has  a bright future ahead, one might consider a small entry before results is a strategy

Tesla has fallen 30% which we feel is a good entry to scale in comes againand after all the hype has died down.  $850-890 is an area to consider a batch in. The next level would be $800-$820. Tesla is on discount and its a good opportunity to scale in for the long term!! Don’t miss out!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , ,
23rd January, 2022, 4:17 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

The Nasdaq 100 is in correction territory falling over 13% while the S&P 500 pull backed over 8%. BUT, if you noticed something, both HSI and STI didn’t fall! Are we starting to see something interesting here? Is this the start of some value surfacing from the Hong Kong market? Read on!

Key Events to Watch For 

Tuesday – FED MEETING

Wednesday – FED INTEREST RATE DECISION

Thursday – Initial Jobless Claim

The Federal Reserve’s meeting Tuesday and Wednesday is the big event for markets in the week ahead, with investors hoping for more guidance on the central bank’s plan to raise interest rates. Markets have been lackluster and awaiting further direction from the Fed.

Technical Levels to Watch For This Week

STI

STI remaining resilient even though there was a sell down over in US. Banks ,commodity and energy stocks gave a helping hand to support the index. We are now very close to the 3300 psychological resistance and we would prefer some pullback first before making a move. A pullback to that uptrend line is healthy to us.  Electronic stock in Singapore saw a pullback due to interest rate concerns as investors took profit off the table first. There might be more downside for this sector. So holding back first.

HSI

Another index that showed resilience is the HSI! China cut its lending rates this week while US is looking to increase its interest rates. Could the Hong Kong and China market outperform US this year? We covered that in our webinar last week! We are hopeful! The HSI managed to regain footing above the uptrend support turn resistance line and even close above the 5ema. There are very positive signs and even on the backdrop of Xi Jinping no mercy in corruption and monopoly crackdown in the later part of the week. More upside might be seen to 25400 levels but of course markets are still looking to fed meeting before making major moves. Keep a watch!

For more analysis on the US market and where it might head to, you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
16th January, 2022, 4:55 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Red hot inflation numbers and fed’s hawkish stance continue to worry markets in US. Despite that, markets in Asia performed better with STI performing very well and hitting our upside targets. Investors came out of growth and tech stock and seek safer more stable asset.

Key Events to Watch For 

Monday – China GDP

Technical Levels to Watch For This Week

STI

Great showing by STI but manly driven by the three local bank as their combine weightage is close to 50%. STI has exceeded our weekly upside target and a pullback is healthy so that investors who missed this ride can hop on soon. Next upside resistance at 3283-3295 which is close to the 3300 psychological barrier. A pullback to around is healthy for the markets.

HSI

As mentioned last week, don’t give up on the HSI yet, although it was one of the worst performing index, we might see a rebound in HSI this year.

It saw a nice move for last week and came close to our upside target of 24600. It tested the 5ema and closed above it on Friday which is a positive sign for us. We’re looking at more upside before HSI takes a break as with any markets, it doesn’t go up in a straight line.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , ,
9th January, 2022, 9:51 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

We have ended the first week of January but not on the best foot as markets were generally down. Surge in the 10 year yield, increasing in Omicron cases caused some pullback especially in Nasdaq. Investors came out of growth and tech stock and seek safer more stable asset. Asia markets had a better showing this week.

Key Events to Watch For 

Tuesday – Fed Chairman testimony . This session highlights the  economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.

For More Key Events head over to our Facebook page.

Technical Levels to Watch For This Week

STI

STI did surprisingly well after staying above the 20ema which we mentioned and moved up to our next upside target of 3208. This is mostly led by the banks as rising interest rates would benefit the banks NIM furthermore, our STI component is heavily slanted on the three local banks. We might see STI moving higher next week as banks continue to hold up the index. 3234 is our next upside target.

Commodities and property counters are coming back to play.

HSI

HSI has rebound and close above the 20ema a positive sign for us even with the negative sentiments floating around. Don’t dismiss the Hong Kong yet as it might surprise us on the upside this year as China tries to stabilize its market. It is consolidating at the 23k area and we might see HSI move higher in the coming weeks.  Some Hong Kong Tech stocks are see some rebounding especially Alibaba which has been beaten down over 50%. If HSI manages to break above 23647 area we might look at around 24k then 24600.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Kelwin & Roy Stock Market ,
6th January, 2022, 7:48 PM

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Salesforce.com (NYSE:CRM), the industry leader in cloud-based customer relation solutions, provides enterprise cloud computing solutions focused on customer relationship management (CRM).

It has recently fell over 25% from Nov high due to its latest earnings and guidance that was released on 30th Nov. Investors were disappointed and selling took place. The fall from last night could be due to  an analyst Karl Keirstead of UBS downgrading shares from buy to neutral, and decreasing the one-year price target from $315 to $265.

In July2021, Salesforce completed the Slack acquisition setting the company up as a juggernaut of the workforce communication solutions. Its future is looking brighter!

Salesforce posted a record $6.86 billion in top-line revenue in third-quarter fiscal 2022, up from $5.42 billion for the same period in the prior year and an increase of 27%. For the full fiscal year 2022, Salesforce expects revenue of $26.4 billion, a 24% jump from fiscal 2021. Revenue is expected to reach $31.7 billion to $31.8 billion in fiscal 2023.

A

At current price, Salesforce is about 20% undervalued which represent a good opportunity to scale in.

The company has a history of growing acquisitions by integrating them into its cohesive ecosystem of offerings. This bodes well for the Slack acquisition, which closed in fiscal 2022. The goal of $50 billion in sales by fiscal 2026 is well within reach as revenues continue to grow impressively.

Salesforce is a leader in its industry and will continue to execute and make gains for shareholders in the future despite the short term pull back.

Technical Perspective 

We can see that the moving averages are sloping down which to conventional teaching means bearish. But if you’re a long term investor, these wouldn’t matter too much especially if you’re investing in a solid company. A good point to scale in could be around $222-230 level as a first batch. Should the support of $222 don’t hold, the next level might be around $208 where an investor can consider a second batch entry. $200 seems a bit tougher unless we see a big pullback in the markets. Investors might take this short term pullback to scale in to good solid companies.

For traders, an entry at the support would provide a good risk reward ratio as indicators are starting to signal an oversold situation too.

Are you watching Salesforce?

Yours

Humbly

Kelwin&Roy

Sembcorp Industries – [Heavy Volume Today, Still Can Chase?]

Kelwin & Roy Sembcorp Industries , , , , , , , ,
6th January, 2022, 5:04 PM

Sembcorp Industries – [Heavy Volume Today, Still Can Chase?]Sembcorp Industries 6th jan 2022

Chart source: AdvisorX 6th Jan 2022

Sembcorp Industries saw a big move today together with an increase in volume. This move came on an unexpected day where US closed red and more talks of a faster rate hike. Overall sentiments were negative but this came as a positive surprise as Sembcorp Industries was holding well. Big Chunks were eaten and if one was not fast enough then this might have been a missed trade.

From the above, we alerted our clients about a week back when Sembcorp Industries had a first break of its downtrend line at $2.02. We saw a nice 5% upside hitting our second target of $2.12 and then witnessing a pullback now. We probably wouldn’t want to chase this trade given the not so strong sentiments out there. In fact, this was one counter which we mentioned in our post previously to take note off, so hopefully most would have gotten in earlier. Taking some profits off the table might be wise given markets don’t have a strong follow through.

If Sembcorp industries manages to stay above $2.12 then we might consider a re-entry.

Missed out on this trade?

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Yours

Humbly

Kelwin&Roy

 

 

CapitalandInvest (9CI) – [New HIGH For the New Year! Our Next Target?]

Kelwin & Roy Capitaland Invest , , , , , , , , ,
4th January, 2022, 5:12 PM

CapitalandInvest (9CI) – [New HIGH For the New Year! Our Next Target?]

Capitaland invest 4th Jan 2022

Chart Source: Tradingview.com

Great start to the new year as we saw Capitaland Investment Ltd making a new high today! It had consolidated more than 2 months and finally shown a great move! Another catalyst might be a local brokerage has reinitiate ‘buy’ on Capitaland Invest with a $4 target. And why are with happy with that? Simple, as we saw movement in Capitaland Invest, watching it break the downtrend line, we notified our Clients about this. We’re glad that with the observation it finally moved up after such a long consolidation. As Capitaland Invest is part of the STI component, that is why we’re seeing the STI moving higher together with the banks.

Our first two upside resistance target has been met and our third one might be around $3.78 area. Its about 24 cents from the previous resistance and the previous support. So we might see more upside in the coming days.

Missed out on this trade?

Don’t want to miss out on another trade alert? Want to know what stock we’re looking at next?

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Yours

Humbly

Kelwin&Roy

The Week Ahead 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy STI , , , ,
2nd January, 2022, 4:21 PM

The Week Ahead 2022 – [STI, HSI, NASDAQ & S&P]

Bye bye 2021 and hello 2022! S&P finished well for the year with nearly 27% gain 🎉as it closed near record high! It has been a good year for the markets and we hope that you managed to benefit from it too! Going into 2022 we might not see such gains but none the less we’re here to navigate through the times with you! Rising inflation, fed tapering, increasing interest rates and Omicron are some issues markets will have to deal with coming this year.

Key Events to Watch For 

Tuesday -Wednesday – ADP Nonfarm Employment Change (Dec)

Thursday – Initial Jobless Claims , ISM Non-Manufacturing PMI

Friday – Nonfarm payrolls, Unemployment rate

Technical Levels to Watch For This Week

STI

STI had a decent gain for the year of around 9% not too bad given STI’s reputation. Well, at least it out performed HSI and didn’t get mentioned as the worst performing index. So something to be thankful for!

As we head into the new year, there is some growing optimism for Singapore as we are recovering from Covid-19 and trying to open up as much. With VTLs currently being suspended, it will take awhile before we turn the corner again. Also, Singapore is bracing for more omicron cases which might delay some progress in this area.

From the technical point of view, STI closed just at the 20ema but we would want to see a nicer closing candle for more upside to happen. With that our next upside target is around 3168. Electronic stocks are showing signs of rebound. Stocks like ISDN, UMS, AEM are currently in play.

HSI

One of the worst performing index is the HSI. It started off well but ended the year down close to 13%. It is still below our uptrend line but it did hit the long term uptrend line over HERE. It is still below the 20ema and unless it can break above that then we might see a nice rebound for the start of the year. A rush of short covering and bargain hunting probably caused a nice bump up towards the end of the week.

Upside resistance of 24000 is our first target.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy