11th December, 2022, 2:56 PM

Wholesale data disappointed the markets with data coming in at 0.1% higher than expected. Markets reacted and started selling. It tried to recover during the day but still ended down after a good fight.

With two key data to look out for, markets this week might be slighted muted as it awaits the data.

Two key data are CPI (Consumer price index) on Tuesday, If this comes out higher than expected, we might see more sell down as hopes for a smaller rate hike on Wednesday might be diminished.

And on Wednesday, Fed will decide if it will do a 0.5% or 0.75% rate hike if it goes with a 0.5% hike, market should move up for a year end rally. Markets will also look for clues if Fed will start pivoting and start slowing rate hike to even 0.25% for the next round of meeting. This could also help add fuel to the recent rally. Key resistance for S&P500is around 4080 and a break above that could see S&P500 move up to 4250.

STI

Bingo! STI came down to our downside target of 3224 as mentioned last week.

Overall ,our straits times index is trading in a side ways movement with the immediate support being at 3222 while the upper resistance is at 3303. If we break the support of 3222, we might see further downside to 3177. With two key data to look out for, markets this week might be slighted muted as it awaits the data. With the negative close on Wall Street, we might see a negative opening first then fight her way through the day. As big data is coming out this week, we prefer to go lighter for the week before re-entering as it could shape the week after that.

HSI

The Hang Seng Index is on steroids! After a slight pullback it continues to march on towards our 20k target! We could see it tip over the 20k before any retracement as traders and investors who fear missing out continue to buy in on any dips. We would prefer some pullback now as the 20k could act as  a psychological level. Although we’re still far from the top, we do hear clients telling us aiya, miss already! We still feel there is good opportunity in the China/ Hong Kong market and we’re just getting started only!

As usual, if you need to talk, we’re here, just a message away.

To know more about S&P500 & Nasdaq do head over to our facebook page to have a read.

Yours

Humbly

Kelwin& Roy

 

4th December, 2022, 3:52 PM

The Fed delivered some good news last week as it hinted that they could start slowing down rates even as early in December which saw the US markets SURGED as traders started piling in positions while shortist were forced to cover their short positions. Profit taking could be seen after that as such part of healthy movement . For the week ahead, markets will continue to look for data to support its run and with Fed’s meeting coming up the week after, market will probably remain sideways for the week.

STI

STI retraced very close to the 20ema and then saw a rebound from there. For now, the Straits Times Index is showing resistance at the 3308 area and its about the third time that it’s testing this resistance. We’re expecting to see more downside for the week as STI as it closed below the 5 and 10ema. Once again, first downside we’re looking at is around 3234 area which is the 20ema. DBS closed below its 20ema again and is sitting at the uptrend support line. If that breaks, more downside will come which will bring the index down too.

HSI

We saw the Hang Seng Index pulling back to our target of around 16741 AND China govt called for a press conference urging the elderly to go for their booster. Also, China continues to ease a little with regards to their Covid measure allowing low risk Covid patients to recover from home.

With that, as we saw the market turning up that’s when we alerted all our clients of this change in directions so that they can take the appropriate action! Now that HSI has come to our resistance, a pullback once again is healthy but this time to the 10ema first before we decide on our next move. Hong Kong/ China has been on a aggressive march up and if you’re missing out on this historical recovery then we hope we’re able to help with you it!

As usual, if you need to talk, we’re here, just a message away.

To know more about S&P500 & Nasdaq do head over to our facebook page to have a read.

Yours

Humbly

Kelwin& Roy