Straits times index

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

Kelwin & Roy Straits times index , , , ,
16th January, 2022, 4:55 PM

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

Red hot inflation numbers and fed’s hawkish stance continue to worry markets in US. Despite that, markets in Asia performed better with STI performing very well and hitting our upside targets. Investors came out of growth and tech stock and seek safer more stable asset.

Key Events to Watch For 

Monday – China GDP

Technical Levels to Watch For This Week

STI

Great showing by STI but manly driven by the three local bank as their combine weightage is close to 50%. STI has exceeded our weekly upside target and a pullback is healthy so that investors who missed this ride can hop on soon. Next upside resistance at 3283-3295 which is close to the 3300 psychological barrier. A pullback to around is healthy for the markets.

HSI

As mentioned last week, don’t give up on the HSI yet, although it was one of the worst performing index, we might see a rebound in HSI this year.

It saw a nice move for last week and came close to our upside target of 24600. It tested the 5ema and closed above it on Friday which is a positive sign for us. We’re looking at more upside before HSI takes a break as with any markets, it doesn’t go up in a straight line.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

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

Kelwin & Roy Straits times index , ,
9th January, 2022, 9:51 PM

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

We have ended the first week of January but not on the best foot as markets were generally down. Surge in the 10 year yield, increasing in Omicron cases caused some pullback especially in Nasdaq. Investors came out of growth and tech stock and seek safer more stable asset. Asia markets had a better showing this week.

Key Events to Watch For 

Tuesday – Fed Chairman testimony . This session highlights the  economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.

For More Key Events head over to our Facebook page.

Technical Levels to Watch For This Week

STI

STI did surprisingly well after staying above the 20ema which we mentioned and moved up to our next upside target of 3208. This is mostly led by the banks as rising interest rates would benefit the banks NIM furthermore, our STI component is heavily slanted on the three local banks. We might see STI moving higher next week as banks continue to hold up the index. 3234 is our next upside target.

Commodities and property counters are coming back to play.

HSI

HSI has rebound and close above the 20ema a positive sign for us even with the negative sentiments floating around. Don’t dismiss the Hong Kong yet as it might surprise us on the upside this year as China tries to stabilize its market. It is consolidating at the 23k area and we might see HSI move higher in the coming weeks.  Some Hong Kong Tech stocks are see some rebounding especially Alibaba which has been beaten down over 50%. If HSI manages to break above 23647 area we might look at around 24k then 24600.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

The Week Ahead (13) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , ,
26th December, 2021, 4:04 PM

The Week Ahead (13) – [STI, HSI, NASDAQ & S&P]

Markets started out shaky but gained firm footing towards the end of the week.  Despite more Omicron infection, markets staged a nice Santa rally with US markets nearing all time high once again. US markets looks like it might have a chance to make a new high just before the year ends! Keeping our fingers crossed!

Key Events to Watch For 

Tuesday – US CB consumer confidence, this measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.

Wednesday – US Pending Home 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.

Technical Levels to Watch For This Week

STI

STI as expected saw a push down on Monday but started recoverin towards the end of the day. Its trying its best to rebound but is now facing resistance at the 20ema. The general sentiment over in Asia is a little lacklustre with volume decreasing as traders take off for Christmas and year end break.  The resistance of around 3120 has to be broken before any bigger move to come. Aviation stocks are holding well despite VTL tickets being suspended for the time being. Sembcorp Industries is looking interesting.

HSI

HSI also started the week down breaking that 23k support level. It soon found support as the Santa rally started to gain momentum. It’s still under the uptrend line and would need to break above the 20ma (23618) and that downtrend line of around 24200 before any meaningful upside is to come. HK does look like its bottoming out. So keeping a lookout for it.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

The Week Ahead (8) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
21st November, 2021, 11:55 PM

The Week Ahead (8) – [STI, HSI, NASDAQ & S&P]

Once again, Electronic stocks, chip makers took center stage as these saw a very nice move up for the whole of last week. And we’re glad to have caught them like MU, AEM, UMS.

Penny stocks are also starting to fire up , so if you’re into penny trading then get ready. BUT do remember to have your proper stops in place as we all know how volatile pennies can be.

Another major event was Alibaba’s results which resulted in a huge sell down while JD enjoyed  nice rally after its results. What an exciting week it was. So now lets look ahead!

Recap for STI & HSI 

STI was flattish this week with DBS pushing to and of course our Electronic stocks, AEM, UMS, ISDN and Nanofilm pushing higher. The rest of the market was actually sluggish and very range bound.

Over in Hong Kong, JD saw a nice rally after its results and breaking above its resistance. Whereas Alibaba took a beating BUT this might present some good opportunity for those who don’t have Alibaba in their portfolio.

Markets were rough in HK after its initial move up which then saw a bigger drop towards the end of the week.

Key Events to Watch For 

The White House said last week that President Joe Biden will likely decide before Thanksgiving whether to keep incumbent Fed Chair Jerome Powell in place for another term or promote current Fed Governor Lael Brainard to the position.

Analysts expect some stock market volatility around the announcement, particularly if Brainard is chosen.

Brainard is seen as more dovish than powell and could consider the timing for further rate hikes.

Monday – Existing Home Sales

Wednesday – Core Durable Goods, Initial Jobless Claims, New Home Sales and crude oil inventories

FOMC meeting minutes

Thursday & Friday are off for the US market due to thanksgiving

Technical Levels to Watch For This Week 

STI

Chart Source: Poemsview 21st nov2021

STI getting in a sideways consolidation but be alert for any move up or down as this might set the direction for the next coming weeks. A downside could be seen till the 40ema whereas the upside might break above that previous high. We still prefer to see individual stock at this juncture as the STI looks undecided for the moment. It is flirting with the 20ema and only with a stronger close and rebound above it then will we be more convicted of an upmove.

HSI

HSI had  a rebound but like STI it could not sustain the rally. A new downtrend resistance can be seen and a new short term uptrend line for the HSI has also been established. HSI could start trading within this range before a more decisive move. If that uptrend breaks we might see more downside to 23,800.

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

 

 

 

The Week Ahead (7) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
14th November, 2021, 4:36 PM

We’re into the middle of Nov and we saw some pullback in the overall market BUT a certain sector stood out in our market! Electronic stocks which we mentioned in our previous  THE WEEK AHEAD post to look out for saw a nice push ahead after AEM’s results sending it to its all time high. Frencken also a boost after its results.

Recap for STI & HSI 

Banks pushed higher last week only with OCBC lagging behind. Once again it wasn’t a broad base rally  and being selective on certain sectors is key. Electronic stock was a sector that we were watching and since then it has started moving. We might see the laggards for this sector to start moving as some spillover effect takes place. SPH was gapping up due to bidding wars which saw its price moved up about 10% for the week. Energy sector is currently taking a breather.

Over in Hong Kong, things are heating up as support was tested and held and we saw a general rebound in HK stocks bringing some much needed rally in the sluggish market. Tech stock saw a good rebound and Xiaomi is a stock that is on our watchlist.

Key Events to Watch For 

  1. Core Retail Sales on Tuesday
  2. Building Permits  in the US to see how the housing market is doing , Crude oil inventories to see how demand for oil and economy activity is. Take note for oil related stocks.  All these are happening on Wednesday.
  3. We have jobless claims on Thursday to see how employment is.

Technical Levels to Watch For This Week 

STI

STI broke below thee uptrend line that has been supporting it and has pushed down to the 20ema also coinciding with our horizontal  support level. We haven’t been that bullish in the STI for the past weeks as most of the underlying components were not really moving. Some bounce came as the 20ema held it up but we’re not very bullish yet and might want to wait for clearer signs. Continue being selective as we can see that Electronic sector is reaping rewards. The bearish candle on friday might signal more downside and with a better base formed then will we have more conviction on the STI.

HSI

And there you have it, HSI being the beast of the east saw a very nice rebound off our support line. It came off with a hammer last Wednesday and crossing above our downtrend line and reaching our next level of resistance of around 25520 which is the uptrend resistance line. HSI does look like its gathering strength to break that resistance and charge towards the next resistance of 26240 area. Looking out for beaten down HK stocks!

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

 

 

The Week Ahead (6) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , ,
7th November, 2021, 4:42 PM

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

The Week Ahead (4) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , ,
24th October, 2021, 10:00 PM


Good Morning and its the last week of October! How time flies some might say! Its about slight more than 2 more months before we end the year so make full use of what this year has to bring!

We know many people are sian about the recent covid restrictions, lets keep our heads up and spread positive vibes as much as possible! Encourage one another, call in a friend to see how he or she is doing! Keep the spirits up!

Recap for STI & HSI 

For our local market, STI touched our 3200 resistance up  rebounding about 3% since breaking our trendline just two weeks ago. Positive sentiments from the US continued to pour over which helped push our market up. Penny stocks saw another round of movement, so for those who likes to play penny stocks, the past week was probably a good one for you. Sembcorp Industries also saw some action this week.

Over at Hong Kong side it has also reached our resistance of around 26222 area with continual rebound from the tech and EV sectors. Evergrande paid out its bond coupon last week, buying it time to wrestle with a debt crisis looming over the world’s second biggest economy. It also resumed work on more than 10 of its property projects. Some good news but do be cautious especially for traders as HK market has rebound off the lows and some pullback might be seen soon.

Key Events to Watch For 

  1. Big Tech earnings! Four out of the five FAANG stocks are set to report earnings during the week – Facebook. This could set the tone for tech stocks.
  2. U.S. GDP .Data on Thursday is expected to show the extent of the headwinds that hit the U.S. economy in the third quarter. Economists are forecasting that GDP growth slowed to 2.8% from 6.7% in the previous three months. Other data to look out for would be initial jobs claims on thursday and friday’s core PCE price index.
  3. Continual monitoring of the 10 year yield. Its at the highest for the month of Oct and given Nasdaq is coming close to its ATH and S&P breaking its ATH, markets might slow down a little.

Technical Levels to Watch For This Week

STI

Chart Source: AdvisorXs 24th Oct 2021

STI continues to power through the week hitting to the round number resistance of 3200 and close slightly below it for the week. It actually rebound off the 5ema which shows some strength. The momentum does looks like its slowing down and with an month of an extension of covid regulations, markets might have some mini reactions to it. It STI manages to hold above the 5ema we might see near term upside resistance to 3230 area where more profit taking might come in. For traders, we might not want to be over aggressive as markets in US are also near or at all time high. So some pullback is not too much to expect.

HSI

HSI has also seen strength rebounding to our upside resistance of 26222. It is currently hovering near this resistance and a break above this might it move to 26834 area. Profit taking might soon come in too as market has rebound for about 2 weeks plus. Keep a look out! EV stocks like geely and BYD has seen a nice move up together with the usual tech suspects. Most tech stocks also are seeing some profit taking as they have rebound for the last few weeks too. Looking for it to stabilize before planning a move again.

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

 

The Week Ahead (3) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
17th October, 2021, 10:20 PM

Image source: goodmorningfun.com

The week is starting soon and we hope you’re not feeling the blues as market is starting to come back to live and things are starting to heat up!

Recap for STI & HSI 

For our local market, as mentioned in our previous post, banks earnings over in the US gave a push to our local banks, especially for OCBC and UOB.

Electronic stocks also saw some rebound as the 10 year yield curve started to ease up. Nasdaq also had a rebound bringing further positivity to the markets. Energy stocks saw some pullback which is healthy while oil stocks pushed further up.

As for the Hong Kong market, it only traded for three days as it was closed for a day due to typhoon warning and one day due to Chung Yeung Festival. Overall, EVs , tech stock saw a rebound in the HK market while HSI moved up to our initial target.

Key Events to Watch For 

1.Earnings! Earnings have kicked off in the US and dozens of companies will be reporting in the coming week, including Tesla (NASDAQ:TSLA), Intel (NASDAQ:INTC) and Johnson & Johnson (NYSE:JNJ), as the first major wave of third quarter earnings results gets underway.

On Thursday Netflix will kicks off third quarter reporting for the ‘FAANG’ group of U.S. tech giants Facebook , Apple  Amazon.

Take note of earnings in Singapore too.!

2 Chinese GDP! On Monday, the third quarter gross domestic product for China will be released alongside with the factory production and retail sales. These are data to see the health of the economy and economist are expecting growth of around 5.2%. If it comes below then market might have some reaction to it depending on how bad the numbers are, but if it jumps on the upside it could spark more upside as this might signal recovery for the world’s second largest market.

3. U.S data he U.S. is to release data on industrial production on Monday followed by reports on buiding permits and housing starts on Tuesday.

4. Bitcon futures ETF! For those interested to get your hands on bitcoin this ETF might provide an avenue for it. The first U.S listed futures ETF are set to launch in the coming week barring any last minute objection from the SEC.

The ProShares Bitcoin Exchange Traded Fund is scheduled to start trading on the New York Stock Exchange on Tuesday. A day later, the Invesco Bitcoin Strategy ETF, would also be allowed to launch unless the SEC blocks it.The ETFs will be based on bitcoin futures that already trade on the Chicago Mercantile Exchange rather than the cryptocurrency itself amid regulatory concerns over a potential lack of liquidity and the risk of price manipulation on spot exchanges.

5. Take note of the 10 year yield too. It did move up on Friday. Don’t overlook this point.

Technical Levels to Watch For This Week

Straits Times Index 17th Oct 2021

Image source: AdvisorXs 17th Oct 2021

STI saw a nice rebound of about 60 points when it broke our resistance line last week . It reached our upside of 3160 on the back on our banks moving, Jardine and Venture having share buy backs . With renewed interest of opening up, this also has caused aviation stocks to move up but we prefer a pullback now before entering. Positive sentiments continue to flow and we might see our next resistance target of around 3200.

HSI

HSI also saw some bounce on a shorter week hitting our first resistance. The closing bar on Friday was a nice pin bar candle. As we see US side closing strong and the S&P cutting above its downtrend line. This could bring more positive movement as the bulls look to overcome the bears in the coming week. Watching HSI to break that resistance of around 25404. If that breaks, our next upside resistance would be 26209.

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

The Week Ahead (2) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
10th October, 2021, 10:26 PM

Image source: Shutterstock.com

We hope you are well rested and ready for the week ahead.  As we ahead into another week lets do a recap and see what next week might bring.

Recap for STI & HSI 

For our local market, STI fought hard despite a few negative session over in the US. Energy,Oil, hospitality and covid related counters took center stage last week. Counters like Golden Energy, First Resource, Wilmar, Sats, Q&M Dental, Raffles Medical saw upside last week.

As for the HSI,  it was trying to find its footing as tech stocks saw some recovery as market is starting to absorb the bad news of  Evergrande and tech regulations.

Key Events to Watch For 

Over the weekend, our government gave more clarity in our battle with Covid , highlighting simplified healthcare protocols and the need for our mental attitude towards Covid. We’re slowly moving forward and becoming a Nation living with Covid. Recovery plays liek SATS, hospitality reits might continue to be in play. Energy and oil counters are also currently in play too.

Some events to watch out for overseas

1. Some of the World’s biggest banks will also kick off their Quarter 3 earnings season with Banks such as JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs reporting their earnings this week.
2. The key U.S. economic report to watch this week is Wednesday’s data on consumer price inflation for September.
3. The Fed is to publish its September meeting minutes on Wednesday amid expectations that it will begin tapering asset purchases before the end of this year, an important first step towards eventual rate hikes.
4. Annual meetings of the World Bank and the IMF get underway Monday, where officials will discuss the global economy, the ongoing COVID-19 pandemic and global taxation issues.
Technical Levels to Watch For
image source: AdvisorXS 10th Oct 2021

For STI, the support of 3024 held and we saw it break our short term downtrend line but resisted by the horizontal resistance previously mentioned at 3112. This week would be interesting as we watch and see if this resistance would break. If this breaks we might we a nice rebound for the week, our upside resistance is around 3160.

For HSI ,it has also broken the short term downtrend as the buying overcame the selling despite negative news which is a positive sign to us once again. It has reached some resistance around 25k and a clear break with a bullish bar might see more upside to around 26k with short term resistance in its path. Inflation fears, bad results earnings from US side might have negative sentiments so do watch out for it.

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

 

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

Kelwin & Roy Straits times index , , , ,
3rd October, 2021, 10:39 PM

We will be doing new series called The Week Ahead where we’ll share a weekly update on S&P500, Nasdaq , Hang Seng Index (Hongkong) and Straits Times Index ( Singapore) on our facebook and blog. We’ll recap what has happened to the markets , key events to look for during the week and  finally  some technical points to look out for in the coming weeks

Recap for STI & HSI 

For our local market, our sentiments continue to remain weak as it is affected by regional markets like HSI and of course USA. With inflation fears and rising 10 years treasury rates, this has continue to affect the sentiments over here. In addition, covid cases are rising in Singapore which adds another damper to our trading climate.

As for the HSI,  worries about the fallout of  Evergrande continues to spook the market affecting Furthermore regulatory concerns over the big tech players like Alibaba, Tencent and Meituan continues to weigh on the markets. But there has been surprising strength in the underlying market as every time when HSI opens lower it manages to have a good closing. Selling pressure seems to be meeting with more buying.

Key Events to Watch For 

A good news that came out where Merck said its new Covid pill reduces the risk of hospitalization, death by half for some patients. This could help lift sentiments especially for recovery stocks like SATS and SIA. Market will still be looking at the 10 year treasury yield for signs of inflation and interest rates.

Technical Levels to Watch For

Image source: AdvisorXs

For STI, it is still a range bound of around 3024 as the support (lower range) and 3112 resistance (upper range) . It is below the 20 and 50ema and the 20ema is below the 50ema which is a bearish sign. So STI has to hold the support of 3024 if not we might see a further downside to even 2928. There is also a short term downtrend line for it to overcome if we want to see any upside movement. A clearer sign would be for STI to break above 3112.

 

For HSI, technically still weak as it is below its 20 and 50ema. support at around 23672 and if that can’t hold then we might see it move lower to 23163 or even 22382. Interestingly HSI has been holding up well despite the pullback that is happening over in the USA and evergrande’s bearish sentiments. If the index manages to hold and break above the 25k resistance, we might see some rebound in the coming week which could take it up to around 25757.

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