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.

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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

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