It was a relatively volatile week and with the jackson hole meeting finally out of the way this now paves the way for the next Fed meeting.

As we’re entering Sept a seasonally weaker period we could see market starting to be more volatile too. That said, it doesn’t mean we will wait for a BOTTOM which nobody knows but at certain support levels that’s when we will scale in. We do look at this pullback as an opportunity to add good quality shares.

STI

Chart Source: DZH 27aug 2023

Straits Times Index saw a rebound as we expected. Reaching close to the 3130 levels. Many stocks saw some rebound which we could see it continue for the week. The resistance we’re looking at its at around the 3220 level. We’re seeing the banks leading the rebound and Sembcorp the darling of STI also showing signs of rebound. After hitting the resistance we might want to be a little cautious as we could still see some pullback after that. So don’t go too crazy

HSI

Chart Source: DZH 27aug 2023

Hang Seng Index formed a base for the week and started to show some rebound. We might not be out of the WOODS yet as HSI still remains unstable due to many downgrades and its property sector still not showing signs of rebound. It’s important to ensure proper allocation to the Hong Kong market and not putting all your eggs in one basket. We could see the HSI rebound to the 20ema at around 18522 level before meeting with meaningful resistance.  Geely holding up well last week despite the sell down.

Head over to our facebook for more updates on the S&P and Nasdaq.

Yours

Humbly

Kelwin & Roy

As early as Mid July we’ve been sounding the bell to be careful especially in the US markets when the greed & fear index was at the extreme greed, emotions were raising and investors were rushing in for the fear of missing the next rally. Ever since then, the S&P500 has pulled back about 5% and the Nasdaq about 8%. Market sentiments continue to be weak especially for AUG-SEPT which is seasonally weaker therefore such a pullback is no surprise to us.

Of course time in the market is better than timing the market but as an educated investor we want to do some studies and make the best of what knowledge we have.

We did a simple study for one year for the greed & fear index vs the S&P500. Can you spot anything on the chart??We have highlighted that whenever the Greed&fear is below 50 or swings towards the fear to extreme fear do you notice that market is kind of near or at the bottom?? And what happens next? Its for ur own interpretation. =) but from the looks of it, the bottom usually is near. So for now, market might have a bit more room to go down BUT we can never know where the bottom is and therefore it is important to do a dollar cost average!

STI

Chart Source: DZH 20aug 2023

The Straits Times Index  came off for the week but more than we expected! As world wide sentiments continue to dampen, Singapore market being so small will naturally be affected. We still could see more downside to 3130 levels before we see some meaning rebound. Over there we probably go for a rebound trade as bargain hunters will start coming out. Bank stocks like OCBC is on our radar for a rebound.

HSI

HSI saw a disappointing close affected by negative sentiments and a gloomy forecast of the China’s economy. Property sector in China continues to slow down with  china evergrande filing for US  bankruptcy adding to the already tough economy. The hang seng index looks like it might go down to 17400 level first. We need to see a rebound if not the structure for a bull case would not be so good. China government also have to come out with something quick if not the index could even sink to as low as 17k. As always, proper allocation into the markets is important and as HK pulls back for those without any position, then take the chance to scale in. BUT if you are fully allocated into the HK market then focus elsewhere and let time heal this market.

To know more about our take on the US and key points to look at to scale in, head over to our FACEBOOK PAGE.

Yours

Humbly

Kelwin & Roy