What a week it has been for the markets especially for the US side. Indices pushing to new highs but once again, not much love shown over in Asia.
Fed’s decision was key to market movement last week as previously highlighted as all eyes were on Chairman powell to deliver what the market wanted. For the most part, the Fed announcement came in as expected with plans to taper by reducing its bond purchases by $15 billion per month for November and December. This would end the Fed’s stimulus efforts by about June of 2022. However, the Fed did say it would be flexible in that it could speed up or slow down the purchases as needed. ALSO, he decided to focus on tapering rather than mentioning much about interest rate in his post-announcement press conference. Smart move there. Markets cheered the decisions and made new highs after.
Recap for STI & HSI
For the STI, we did see some renewed strength in the banks as the three local banks posted good results thus bringing the index higher. But we didn’t see a broad base rally as only very selective stocks were pushing up the index like Jardine. We also saw a rebound in our electronic stocks as previously mentioned but results releasing could decide the fate of their movement.
Over at Hong Kong, some what same story as HSI continued to be resisted by the resistance we drew. But it came very close to our next support. Big tech in HK saw a mixed bag with no clear directions while the auto makers had some rebound. We’re looking at HSI to form some support before taking any decisive actions.
Key Events to Watch For
Singapore bank earnings are out, so we’ll continue to monitor our E stocks for their results. Do also take note of the earnings for the stocks that you’re looking at especially if you’re intending to take position in it.
A little of the same stuff like PPI on tuesday and Core CPI and Initial jobless claim on Wednesday are some of the key events.
Major earnings like Alibaba, Paypal on Monday and Tencent (ADR) on Wednesday. Do check out the earnings calendar over HERE to see when your company is reporting.
Technical Levels to Watch For This Week
STI
STI has been bouncing off that uptrend support line that we’ve been drawing. As banks reported their results, that gradually pushed the index up above our 3234 resistance. Now staying above this might see if push further to 3280 level which is back in Jan 2020! The underlying stocks of STI has been rather weak without much following through so do be very selective in your stock selection and take profit fast before profit taking sets in.
SATS, E stocks are still some of the stocks that we are looking at.
HSI
Performing worse than our STI , HSI has been pulling back ever since hitting our resistance. It has now reached near our support of around 24667 and if we could see this hold then a good chance for some rebound might be on the cards. There is downtrend resistance line and the horizontal resistance of 25077 to overcome and if HSI manages to break this level then we might see a good rebound coming in. Tech stocks are on our list together with auto makers like Geely and BYD Co. Li Ning is also another stock on our watchlist.
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!
Yours
Humbly
Kelwin&Roy
