S&P500 and Nasdaq tumbled for four straight days, notching the worst week since March. This is partly due to Fitch downgrading US to AA+ rating. If you are waiting on the sidelines or someone who missed the rally then this should be music to your ears. FINALLY some pullback!
We’ll be updating the potential levels to look out for if you are considering an entry so do head over to our facebook page to stay updated with the latest. Aug- Sep are usually seasonally weaker periods too so one could take advantage of this if the market pulls back.
STI
Source : DZH International advisor 6th Aug 2023
Just shy of 7 points to 3400 and the Straits Times Index went into profit taking mode. As warned, at around 3400 we would want to be taking some profits. For the week, STI has retraced about 3% which is healthy and could be looking to around 3240 levels for further retracement. Waiting for the dust to settle before making any moves. Keeping a look out for REITS as interest rates is stablizing and this might be time to start accumulating REITS if you want to build up a income dividend port.
HSI
Source : DZH International advisor 6th Aug 2023
The Hang Seng Index did hit our 20119 target last week but as much as we wanted it to carry on, it met with some roadblock and like the other markets, it saw some selling and moved down to the 20ema support line. For now this support is holding and the next line of support would be around the 19500 area. It got to hold around there in order to have it make a higher low to continue on the uptrend. Will be watching for a day or two to ensure the selling has stopped before making another move. We enjoyed the previous wave so holding back is not wrong too.
Head over to our Facebook page to find out the potential levels for the S&P500 as this pullback is starting to make stocks more attractive in the US.
Yours
Humbly
Kelwin & Roy
