Disappointing CPI data as inflation still remains stubbornly high. We saw a really WILD ride as Nasdaq moved over 5% in intraday movement on Thursday night. Market actually clawed back its losses on Thursday night coming back from being down 3% to ending up 2%. But on Friday US markets gave up all gains. We know it can be frustrating when markets swing to wildly so its very important to reduce your lot size and ensuring you’re discipling in cutting loss. Save your bullets to fight another day.
For this week , China’s CCP meeting will be focus. New party leaders will be chosen, growth plans laid out and China’s plan on the international stage will also be discussed. Markets might also take some cue in the party’s plan with regards to battling Covid. Many are hoping that China will ease their stand on Covid lock downs so that more economic activity can start. But at the same time, let’s not be too hopefully.
Our Straits Times Index also came off as expected before some rebound after CPI data but was short lived as traders took profit on a relief rally. With Friday’s negative close, we might start off in the red for the week and probably look to fight our way through the week. We might move down to 3000 a round number support before any rebound that might come during the later part of the week.
After coming off as mentioned last week , the Hang Seng Index tried to look for a rebound but like STI, it was short lived. The 5ema acted as the resistance and HSI couldn’t stay above it. For this week, the CCP meeting will probably give us guidance to where the HSI might go to. It might consolidate around the 16k region and only if it manages to stay above the 5ema then we might see further rebound to 17500 level.
Do head over to our Facebook page for more updates on S&P500 and where it might head after the massive sell down. Updates for Nasdaq is also over there.
Kelwin & Roy