The Week Ahead April 2023 – [STI, HSI, NASDAQ & S&P]

23rd April, 2023, 3:00 PM

It was a rather poor showing for the markets for last week with only the STI surprisingly resilient. Despite a stronger than expected GDP data from China, that failed to boost markets and Biden’s push for China investment curbs also caused the China/HK market to sink.

Major tech companies like Microsoft, Amazon, Meta, Alphabet will be releasing their results this week. Companies like VISA, Mastercard will also be reporting and focus will be on how their quarterly results to see if consumption/spending has come down and their forward statement and any clues to whether we will be heading into a recession.

Some data to focus on would be US GDP and initial jobless claim on Thursday then fed’s preferred indicator which is the core PCE  data on Friday.

On the home front, UOB will go XD at the end of the week which also could cause some weakness as investors might start selling shares of UOB after it goes XD.

STI

 

Straits Times Index 23rd April 2023

Chart source: DZH International Advisor 23rd April 2023

STI was surprisingly resilient. With stocks, like Keppel Corp, Sembcorp Industries,Capitaland Invest. all pushing up through the week.  Keppel Corp also gave its business update which could explain the push up for the week.

The STI near term resistance is at around 3332 level and if we do break this on good earnings results then we could see the index move up to the 3380 level. For the support, the first level is at around 3302 which is also the 10moving average indicator. If that breaks on negative sentiments, we could see it go as low as 3267. We’re expecting a bit of volatility as the earnings could surprise on the upside but recession fears could once again bring the markets down after.

Investors still remain cautious firstly because the STI has actually seen about 7% gain since the low in march and have not seen any significant pullback ever since. Investors could be waiting on the side lines for a further pullback before establishing any position hence we see our STI relatively flat

HSI

Hang Seng Index 23rd April 2023

Chart source: DZH International Advisor 23rd April 2023

HSI saw selling pressure despite better data from China which meant weakness. A further political move by Biden gave more reason for more selling which saw HSI falling close to its 200ema.

For this week, most likely we should see this support being tested and we could even see more down side to 19050 area. Many fake break out last week and no doubt some injured traders along the way which is part and parcel of the journey so fret not! If you want to take advantage of the downside, using CFD or DLC are some the options. HSI short term remains weak but for long term investors, time to look out for entry points.

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Yours

Humbly

Kelwin & Roy

 

The Week Ahead April 2023 – [STI, HSI, NASDAQ & S&P]

16th April, 2023, 11:22 PM

 

CPI data which market was eyeing turned out lower than expected last week which sent markets on an upwards swing. Despite Initial jobless claim coming in higher than expected, inflation data took center stage as more signs of easing ease inflation fears.

Also, big banks like JPMorgan, Citigroup and Wells Fargo all beat expectation which gave a boost to the markets too.

This week, focus will continue to be on earnings. Corporate results and outlooks will be taking on added importance especially during this season as investors will gauge whether all this interest rate hike is hurting earnings and spending. Consumer discretionary sector stocks like Tesla , J&J , Goldman Sachs are just a few big companies  reporting next week and market will take cue from these earnings.

STI

Source: DZH International Advisors 16th April 2023

STI came off during the start of the week as expected but as CPI data came out, market start creeping up BUT started showing weakness on Friday as profit taking set in. For this week, expecting a drift down first to a test of the 20ema of now at 3270. Stocks in the STI components also looks tired, stocks like Sembcorp Industries, SGX and the banks too. So waiting for more pullback before entering. OR, one can considering a quick short to take advantage of the pullback. 

HSI

Source: DZH International Advisors 16th April 2023

HSI also having a sideways consolidation for now but has closed above the 5ema which is a positive sign for now. We should be looking at more upside for this week given the rebound on Friday. Upside to 20700 first which is also around that uptrend line resistance. Geely, Xiaomi are some of the stocks we’re looking at for this week for more upside. Overall, sentiments flowing from US will help to determine the direction for HSI too.

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Yours

Humbly

Kelwin & Roy

Beware! Pullback Might Be Coming for This Counter!

10th April, 2023, 5:27 PM

This particular counter has seen a tremendous rise and is probably one of the best performing stock for 2022 and moving into 2023.

This counter is none other than Sembcorp Industries! This stock has given us many positive returns through the years and its one of our favourite counter to trade too.

As early as 2021 we started noticing this counter already and has since see positive returns. For 2022 we have given 6 alerts on Sembcorp Industries and have seen many positive returns after.

And for 2023 we have given 2 alerts so far which have seen over 10% upside each time we alerted our clients. You can start to see why Sembcorp Industries is one of our favourite stock now.

But as the saying goes, all good things have to come to an end? But don’t worry, this doesn’t mean the end for Sembcorp Industries. As the recent move as been quite powerful, a pullback is inevitable. We can see that Sembcorp Industries has been trying to break the $4.42 barrier but is unable to do so. Also, this is the first time that Sembcorp Industries has closed below the 5 and 10ema. In addition, indicators  A pullback might be on the cards which could take it to $4.19 first and even $4 for a sharper pullback.

Sembcorp Industries 10th April 2023

Source: DZH international Advisor 10th April 2023

Waiting for a better entry for Sembcorp Industries first before making any moves.

Want to be alerted on Sembcorp Industries next move? Don’t miss the next move!

Contact US to learn how to be included in our next alert!

Yours

Humbly

Kelwin & Roy

The Week Ahead April 2023 – [STI, HSI, NASDAQ & S&P]

9th April, 2023, 4:36 PM

Markets ended flat for the US side as traders looked to book profits ahead of the jobs data and long weekend. Market has been trying to digest the data as recent data might give more insight to an impending recession which is spooking the markets. Focus might start to shift towards recession fears as the narrative about interest rates starts to wane off.

For this week, all eyes will be on the CPI and whether it will further seal the deal for hopefully a final rate hike of 0.25% when the Fed meets in May. A less than expected numbers could give a boost to the markets together with April seasonality. Expecting market to consolidate first before making any move.

STI

Source: DZH international Advisor 9th April 2023

STI rose overall for last week as April seasonally is a better month for the stock market as portfolio managers look to rebalance their holdings and prepare for the next quarter. What was holding up the index also was the banks as their dividend pay out continue to help give support for the index. Profit taking set in after a week’s gain as traders looked to book profit before the crucial jobs data which came in line on Friday.

DBS will be going xd on Monday which could cause some selling as those who held through for the dividends might be letting it go after. We might see some knee jerk reaction to the STI as profit taking. UOB will go xd end of April ( 28th April)

The immediate support for the STI is around 3295. Immediate key psychological resistance is at 3330. A break of the support of 3295 which is also the uptrend support line could take us to around 3252 support level which we could be looking at for the week. After hitting that support, we could see support coming in for the markets as some pullback will be welcomed.

HSI

HSI looks like its rebounding from its recent correct and we could see some upside this coming week. It has closed above the 5ema which is a positive sign. For this week if HSI can remain above this 5ema further upside to 20680 then 21000 next. So far HSI is tracking US a little more taking cue from the world’s biggest market. HKEX looks stronger as its still above its 20ema which most tech stock like Baidu, Jd and Meituan are below.

Do be nimble this week as markets are not out of the woods yet.

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Yours

Humbly

Kelwin & Roy