We get really excited whenever we see a pullback in the markets especially in the US. When market run away too fast and too high that’s a big of a danger as most would jump in on fear of missing out. Furthermore the greed and fear is current at 82 under the extreme greed region. As the old saying goes when everyone is greedy, be fearful. =) When everyone was fearful, that’s when we should be greedy.

For this week, the most important event would be Fed meeting. Market as a whole is expecting a 0.25% increase this coming Wed. There is a 99% chance that Fed will hike.

Source: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

How much of this priced in? Could US market finally have some pullback after this rate hike? We’re hoping so and also depends on what the Fed says after that. Could this be the last or one more time in sept? As inflation is coming down would there still be a need for a second hike? Watching the statement is more important than the hike itself.

STI

Source : DZH International advisor 23rd July 2023

STI inching closer to our 3300 target as we continue to see a rebound in the STI. For this week, we might continue to see some rebound as an increase in rates could help prop up banks which supports our STI. OCBC has found our target while hot stock Sembcorp Industries also saw some rebound. Overall, STI is starting to see more action after a pullback last month.

HSI

Source : DZH International advisor 23rd July 2023

HSI saw a pullback for last week after dismal reading of its GDP! It came in lower than expected which saw traders taking the chance to take profits off the table. It managed to find some support and not head back to the 18,500 level. This is a good sign as market is forming a higher low pattern. We could be looking at market testing the 19700 region as a base is starting to form. Once again, big tech stocks are also firming up and we could see more upside. JD, Tencent are on our radar.

Head over to our facebook page for more updates on the S&P500 and Nasdaq.

Yours

Humbly

Kelwin & Roy

The post The Week Ahead July 2023 - [STI, HSI, NASDAQ & S&P] appeared first on Singaporehumblestock.