The Week Ahead June 2022 – [STI, HSI, NASDAQ & S&P]

26th June, 2022, 4:42 PM

 

Its the end of the school holidays! We hope you had spend some quality and quantity time with your kids and family. It was an exciting week especially for the Hong Kong market which gained strength and saw very good gains overall. US also saw some positive action towards the end of the week with Nasdaq breaking out from its consolidation. Is the bull finally back? Read on to find out more.

Some things to note, market saw a pullback in commodity prices like oil, palm oil and coal stocks are starting to retreat too. This could give a short term relief rally for the markets but all eyes still on inflation data which will continue to lead the market. The 10 year yield has also retraced which continues to boost markets especially the Nasdaq.

HSI

A very nice rally for the hong kong market as it burst through its 5ema which we mentioned last week. Auto stocks saw a nice jump on govt stimulus which we also spoke about. Many stocks in Hong Kong are displaying strength in which we have seen for the last year and its good to have some focus on the Hong Kong market. As for the week, we are looking for more upside to around 22397 which is around the horizontal resistance. HKEX , Xiaomi are also looking good for next week. Remember once again if you’re trading or investing in HK markets as your approach to the market would be very different. As for investors, we have mentioned quite a few times to slowly average in due to our bullish view on it whereas for trading we’ll need a bullish momentum for it.

STI 

STI has also rebound off our support line which we drawn last week but the rebound we saw wasn’t anything strong as predicted. It came to the downtrend line and started hovering around it. For the week, we might see a move up towards 3146 area which is also around the 20ema. Wilmar is one stock we’re looking at with interest! Reits for investment has also shown strength through the week which we have informed our clients!

The week is shaping up to be a better one so be alert and make good use of it!

Head over to our facebook for more updates on S&P500 and Nasdaq for the potential levels we are looking at.

Yours

Humbly

Kelwin & Roy

 

The Week Ahead June 2022 – [STI, HSI, NASDAQ & S&P]

19th June, 2022, 3:24 PM

Fed has raised rates by 0.75% on persistent inflation. Inflation wasn’t slowing down in June which left the fed to increase increase rates by 0.75%. Markets continue to look upon inflation numbers and if it doesn’t slow down then more rate hikes are going to be expected with the next one in July. An interesting thing that we’ve been mentioning is that despite US making new lows, the Hong Kong market which we’ve been covering extensively has actually been resilient. With good news flowing out of HK we continue to be bullish and believe in the recovery of that market.

HSI 

HSI has retraced to our short term uptrend line but is currently resisted at the 5ema. It has formed a higher low which is healthy in a larger reversal cycle. For long term holders, congrats as HSI is finally seeing some positive light with positive news flow coming out more and more. Even with the recent downside in US, HK has been holding up well with 20k a good support to continue to scale in. For this week, a break above the 5ema might signal more bullish signal and a test of 22k might be possible.

STI 

STI has hit some some around 3072 but a more significant support is around 3035 area. That is a still a chance that STI might hit that support before any sustained rebound that comes. Singapore markets is still trying to find its footing and there hasn’t been any sustained rally so far. STI might rally to that downtrend line of around 3120 before getting resisted. We’ll await more confirmation before making any moves.

Head over to our facebook for more updates on S&P500 and Nasdaq for the potential levels we are looking at.

Yours

Humbly

Kelwin & Roy

 

The Week Ahead April 2022 – [STI, HSI, NASDAQ & S&P]

3rd April, 2022, 4:37 PM

The Week Ahead April 2022 – [STI, HSI, NASDAQ & S&P]

Yield curve inversion causing some pullback in the markets but is this pullback good enough? Will recession be hitting soon? Read our view on S&P 500 and the Nasdaq to find out more.

STI

STI has hit our upside resistance of 3454 and started to pullback. A healthy pullback is good as most of our stocks have hit their targets and traders are starting to complain prices being expensive. A pullback to the 20ema is not too much to ask for as we start scanning for stocks to re-entry again! Want to know what stock we’re looking at next?

Be our EXCLUSIVE CLIENT and be alerted earlier to not miss out!

HSI

HSI saw a  rebound to our resistance and with a bullish candle on friday plus good news with China considering letting the US check their audits. China ADRs probably might have some upside. A larger pullback is more helpful as this brings more confidence to trade the HK market. But if HSI manage to break that 22339 resistance we might see it move up to 23647, not the best of situation but as traders, we have to learn to go with the flow.

For more analysis on the US market and where it might head to, you can click HERE

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

The Week Ahead March 2022 – [STI, HSI, NASDAQ & S&P]

13th March, 2022, 4:20 PM

The Week Ahead March 2022 – [STI, HSI, NASDAQ & S&P]

Fed will be meeting this week and we’re most likely going to see an increase in rates. What is more important is the fed’s posture, how many times they’re looking at for hike and how fast. An increase in march is more or less a given only by 0.25% or 0.5%. With inflation at sky high, fed is also under pressure to tame inflation.

With the war that is happening, this has really changed the game plan and even the outlook of the economy. With the ongoing sanctions, oil prices increasing this has increased the  chances of a bear market. The increase in commodity prices will have ripple effects on the economy and markets could see a slow down for the time being. We wouldn’t want to use too much leverage in such times as the chances of a bear market has increased.

Key Events to Watch For 

Development over in Ukraine is key as its hard to tell how this war will end and how long more will the fighting carry on. Markets continue to remain on edge as this war does look different from the others.

Eyes will be on the upcoming Fed Meeting from 15-16th March and decision on rate hike will be announced on Thursday morning 17th March singapore time. Near term volatility is expected.

Reduced leverage, stick to your trading plan with a tight stop loss. Now is not the time to be aggressive or a hero.

Market continues to be near the extreme fear region which investor might want to take advantage of.

Technical Levels to Watch For This Week

STI

Singapore market performing the best for us with most of our Singapore targets hitting their targets despite the negative market sentiments. We’re cautious this week as Fed is set to increase interest rates hence for trading position we wouldn’t be aggressive but would rather adopt a wait and see approach.

HSI 

Norway sovereign fund’s offloading Li Ning is triggering some worries in the HK markets, tech companies reporting lower results due to regulations, US delisting fears for dual listing China companies, Covid cases increasing both in mainland china and HK. Its a never ending list of fear and uncertainty for the HK market. It is possible for a test of around 20k for HK before some bargain hunting comes in. Indicators are currently oversold too. Trading has been tough in HK market and we haven’t been giving any alerts for the HK markets for while. Waiting for a more stability in HK first.

For more analysis on the US market and where it might head to, you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

 

The Week Ahead Feb 2022 – [STI, HSI, NASDAQ & S&P]

13th February, 2022, 3:48 PM

The Week Ahead Feb 2022 – [STI, HSI, NASDAQ & S&P]

The start of the week was a good one for Asia markets as we saw many of our Asian counters hitting their porfit targets. But as the week drew to a close, hot inflation numbers spook the markets, sending the 10 year yield curve temporarily above 2%. To add fuel to the fire, talks about an emergency fed meeting to raise rates before March further escalated the drop. Goldman even sees Fed hiking rates from 5 to 7 times this year which caused further panic.  Also, Russo-Ukrainian war continues to spark fears in the market causing the S&P500 to drop even more on Friday but Oil gained an upper ground.  All in all, Asia continues to outperform the US markets.

Key Events to Watch For 

As tension carries on this week, keep a lookout for development on the Ukraine front and watching fed to see any updates from them.

Tuesday – PPI (The  Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.) Watch this!

Wednesday– Core Retail Sale  ( Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.)

Crude Oil Inventories – Oil traders take note to see how bullish oil will be

Thursday – Building permits & Initial Job Claims

Technical Levels to Watch For This Week

STI

The STI continues to outperform the markets and even our expectations pushing up higher this week. We’re glad a lot of our counters are finding their profit targets with some hitting over multiple targets in the week.  STI has been up close to 2 weeks already and it might be time for some healthy pullback if not it’ll be tough for re-entries. We’re eyeing a pullback to 3366 level. So far, the banks are once again pushing the index up while other recovery counters like comfort and sats are also pulling their weight.

HSI 

Over in Hong Kong, the markets got a boost as reports of China State funds buying stocks to help stem declines. Covid cases continues to raise and strict measures are in place to curb the spread. HSI has hit our short term upside target and pulled back to a level of support both horizontal and the 5ema. With a few negative sentiments out now, we’re cautious going into this week. If the 5ema doesn’t hold, we might see it get pushed down to the 20ema of around 24330 area.

For more analysis on the US market and where it might head to, you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

7 Reminders During A Correction

27th January, 2022, 5:12 PM

7 Reminders During A Correction

To put things into perspective, in 2021 we didn’t have any major correction, just about 8 shallow pullback of about 5-8%. So when it might get uncomfortable with a correction but we’ve written something to help

7 Things To Remind Ourselves During A Market Correction:

As the market corrects months before the first rate hike, these are some things we might want to remind ourselves:

1. When market was up and we wanted to chase the price to buy a good company stock, now that prices have retraced, why are we fearful and running away? What has fundamentally changed?

2. Define your investment horizon. Remember, whenever you’re investing, it should be funds you don’t intend to spend in the next 4-5 years. And if this fund is for the long term then learn to endure pullback, corrections and crashes. Funds meant for short term usage shouldn’t be used to invest.

3. Huge gains are made during the pullbacks and volatility. Imagine if you got in around march 2020. =)

4. Going through a correction is one of the toughest things to do, with media outlet splashing doomsday news, things always feels like they’re going to worsen. Hold strong and believe in your conviction.

5. The benefit of having a long time horizon is that you don’t have to try to time the bottom when buying in a sell off. No one can time the bottom, if they could it’s probably luck or they’re lying.

6. Every sell off is a buying opportunity. From history, with every sell off, market moves higher. S&P is higher now as compared to 2020’s crash.

7. The reason for a sell off doesn’t really matter. There can be a thousand and one reason why market is selling off. Fed rate hike, inflation, coivd-19, political tension, Ukraine/Russia tension. In a grand scheme of things, these could be noise to the markets and markets will find ways to resolve it. Market could be throwing a tantrum, who knows?

As always, if you have any questions feel free to drop us a message.

From Kelwin & Roy

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

6th January, 2022, 7:48 PM

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Salesforce.com (NYSE:CRM), the industry leader in cloud-based customer relation solutions, provides enterprise cloud computing solutions focused on customer relationship management (CRM).

It has recently fell over 25% from Nov high due to its latest earnings and guidance that was released on 30th Nov. Investors were disappointed and selling took place. The fall from last night could be due to  an analyst Karl Keirstead of UBS downgrading shares from buy to neutral, and decreasing the one-year price target from $315 to $265.

In July2021, Salesforce completed the Slack acquisition setting the company up as a juggernaut of the workforce communication solutions. Its future is looking brighter!

Salesforce posted a record $6.86 billion in top-line revenue in third-quarter fiscal 2022, up from $5.42 billion for the same period in the prior year and an increase of 27%. For the full fiscal year 2022, Salesforce expects revenue of $26.4 billion, a 24% jump from fiscal 2021. Revenue is expected to reach $31.7 billion to $31.8 billion in fiscal 2023.

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At current price, Salesforce is about 20% undervalued which represent a good opportunity to scale in.

The company has a history of growing acquisitions by integrating them into its cohesive ecosystem of offerings. This bodes well for the Slack acquisition, which closed in fiscal 2022. The goal of $50 billion in sales by fiscal 2026 is well within reach as revenues continue to grow impressively.

Salesforce is a leader in its industry and will continue to execute and make gains for shareholders in the future despite the short term pull back.

Technical Perspective 

We can see that the moving averages are sloping down which to conventional teaching means bearish. But if you’re a long term investor, these wouldn’t matter too much especially if you’re investing in a solid company. A good point to scale in could be around $222-230 level as a first batch. Should the support of $222 don’t hold, the next level might be around $208 where an investor can consider a second batch entry. $200 seems a bit tougher unless we see a big pullback in the markets. Investors might take this short term pullback to scale in to good solid companies.

For traders, an entry at the support would provide a good risk reward ratio as indicators are starting to signal an oversold situation too.

Are you watching Salesforce?

Yours

Humbly

Kelwin&Roy

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

19th December, 2021, 1:32 PM

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

Markets ended the wild week on the down side after Fed’s statement of a faster tapering and more rate hike in 2022 initially sent the markets up but worries of a tighter monetary policy and the ongoing pandemic, leading to a losing week for the major averages.

Shares in Chinese healthcare and technology firms tumbled after a report that the United States would add more Chinese firms, including the largest commercial drone maker and biotech firms, to investment and export blacklists this week.

What a week it has  been.

Key Events to Watch For 

Tuesday – US producer price index , this measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

Wednesday – US core retail sales and US retail sales

Thursday – Initial Job claims , this measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

We need to see the support for S&P holding if we want to see any last minute rally for the year.

Technical Levels to Watch For This Week

STI

Chart source: AdvisorXs

STI wasn’t spared the sell down and is sitting precariously on its double support. The horizontal support and the uptrend support line. There is a volume increased which might favor the downside and if that support breaks it is possible for a retest of around 3033 area. Its not looking good for STI now. Be prepared for further downside. It couldn’t cross the 20ema which is not ideal. Only our banks saw a push up.

HSI

HSI started well, above that uptrend line we drew but couldn’t break the 20ema. It broke below the trendline support as more Chinese companies were added to the US blacklist. Tech stocks also took a hit as inflation concerns continue to linger. It was a nasty week for HSI. The immediate support is at 23k but it does look precarious too. The next support might be around 22399.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

Are Banks Back In Play?

14th October, 2021, 7:52 PM

Are Banks Back In Play?

Are banks back in play? Lets take a quick look at the charts to see if momentum to the upside has returned.

Lets take a look at OCBC first.

Chart source: AdvisorXs 14th Oct 2021

OCBC Bank has broken above its horizontal resistance of around $11.64 which our clients were alerted on. From there we can see if move higher to our upside targets. A new upside move might be in play as banks are starting to come back in play. The big banks in US are also reporting results this week which might give a boost to our Singapore side if results are good. Volume is also starting to return as traders are starting to come back to the bank counters.

We might see OCBC move up to around $12 which is the gap resistance and a break of that might see it push higher to $12.24.

UOB

Image Source: AdvisorXs 14th Oct 2021

UOB chart quite similar to OCBC’s chart as it broke above its horizontal resistance of around $26.34. Volume started to come in yesterday too as our three local banks started getting more attention. If this level is able to hold, we might see it move to $26.90.

DBS

DBS is the only bank that has yet to break out. Will it breakout soon? Is this on your watchlist? We have drawn our levels what we are targeting. What will your trade plan be like?

As we can see, momentum looks like its returning to the three local banks with DBS lagging behind. Will it catch up?

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Yours

Humbly

Kelwin&Roy

Sinostar Pec – [ Start Of A New Uptrend Wave? ]

10th August, 2021, 7:30 PM

Sinostar Pec – [ Start Of A New Uptrend Wave? ]Sinostar Pec 10th Aug 2021

Chart Source: AdvisorXs 10th Aug 2021

Sinostar Pec is one of the largest producers and suppliers of downstream petrochemical products within 400km radius of is production facilities within the Dongming Petrochem Industrial Zone in Dongming County of Shandong Province, PRC.

It had some movement just over a week ago when we first spotted it and finally it started to show its true colours today!

A nice consolidation for the past few weeks led to a nice breakout with volume which resulted in a 8% upswing from our entry! With such a move , a new uptrend might be forming and 0.425 target is within sight now. With an increased in volume we might even see $0.45. Watch out for the break and momentum!

If you would like to know how to receive such trade alerts sent to your handphone, just drop us a message and we’ll walk you through it

Want to be alerted earlier before the breakout?

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Yours

Humbly

Kelwin&Roy