Spencer Li

Weekly Market Wrap: Will Tech Stocks Live Up to Earnings Expectations?

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Thumbnail banner weekly market wrap x3

For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (24 July 2023)
Click here to subscribe for the latest market report (31 July 2023)
Click here to see the archives of all our past market reports

Market Recap & Upcoming Week

Last week was marked by significant financial and technological achievements with tech giants Google and Microsoft posting impressive earnings. Both companies showcased enhanced revenue growth and profitability for the quarter ending in June. A highlight was the resurgence of Google’s main advertising business after two quarters of decline, and Microsoft’s cloud and enterprise software sectors exceeded Wall Street expectations despite a global slowdown in tech spending.

Additionally, the duo’s commitment to generative AI technology was noteworthy. With Microsoft’s proactive adoption of this technology, its stock experienced a 46% surge since the start of the year. Google-parent Alphabet, meanwhile, saw a moderate 39% stock increase this year, further boosted by a 6% jump after their recent earnings report.

Meanwhile, on the stock market front, the Dow Jones Industrial Average reached a record with its 12th consecutive day of gains, significantly assisted by a surge in 3M shares. Despite 3M reporting a quarterly loss due to a litigation settlement, the company’s shares rose 5.3% after it announced improved margins and an increase in its yearly earnings expectations.

The U.S. Federal Reserve also raised interest rates by 0.25% in response to ongoing inflation, marking the highest policy rate in 16 years. Internationally, rumors of a possible shift in Japan’s longstanding bond yield repression policy caused minor upheaval in U.S. markets, triggering a rise in Treasury yields and a reversal rally in the S&P 500. This speculation, if confirmed, could signal a more restrictive policy stance in Japan, potentially disrupting international trades tied to Japanese markets.

As the earnings season carries on, the market eagerly anticipates reports from tech giants such as Apple and Amazon. These high-profile companies’ financial results will need to significantly exceed expectations to drive share prices further. Given their current near-all-time-high status, any average earnings reported could potentially lead to a decrease in share prices.

Investors also await economic data, including the June JOLTS report and ADP’s National Employment Report, as well as the July nonfarm payrolls report to get insights into the state of the labor market. Adding to the roster of vital data is a series of PMI readings from S&P Global and the ISM, which will offer indications of the health of the manufacturing sector.

Investors will also keep an eye on the eurozone’s inflation and GDP numbers, potentially influencing international investment decisions. Finally, the Bank of England’s interest rate decision will be critical as markets globally adjust to changing monetary policy signals.

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

Trading Signals USDSGD 280723

USDSGD – Prices were unable to break the support despite multiple tries, this is a sign of bullishness.

 

Trading Signals NZDCAD 280723

NZDCAD – Prices are now halfway to the TP, will continue holding. 💪🏻

 

Trading Signals US100 280723

NASDAQ 100 (US100) – Prices tried breaking higher but got rejected and closed lower. This shows a lack of buying conviction and could lead to a small correction.

 

Trading Signals 3067 280723

China tech stocks ETF (3067) – Following up, prices have broke above the mini ascending triangle, and are likely to test the prior swing high.

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Spencer Li

Weekly Market Wrap: Will We See More Rate Hikes Next Week?

Thumbnail banner weekly market wrap x3

Thumbnail banner weekly market wrap x3

For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (17 July 2023)
Click here to subscribe for the latest market report (24 July 2023)
Click here to see the archives of all our past market reports

Market Recap & Upcoming Week

Last week was marked by significant geopolitical and financial events that could have substantial implications in various sectors. On the international political front, Moscow’s withdrawal from humanitarian cooperation at the United Nations and its decision to shut down a Syrian aid route could raise concerns over regional stability.

Meanwhile, in the tech sector, Tesla finally started production of the much-anticipated Cybertruck at its Texas factory. For its earnings, Tesla reported a 20% increase in profit, attributing it to price cuts and higher deliveries, but its share price took a beating. Notably, Ford also slashed the price of its F-150 Lightning Electric Truck by up to $10,000.

The UK took a significant step towards globalization by joining the £12 trillion Indo-Pacific Trade Bloc.

In terms of financial markets, China’s debt sector has been caught in ambiguity and financial squeeze, and the global wheat prices are surging due to Russia’s withdrawal from the grain deal.

ARK Investment Management’s Cathie Wood decreased her stake in Twitter by 47%, but still remains optimistic about the company’s future prospects. In the corporate world, tech giants Microsoft and Meta have collaborated to offer new AI software for businesses. Netflix’s crackdown on password sharing has led to a surge in new subscribers, reflecting changes in consumer behavior.

Elsewhere, hiring patterns have indicated a possible looming recession, even as companies continue to recruit heavily. Notably, the semiconductor industry is experiencing a downturn, with TSMC reporting a profit drop for the first time in four years.

On the monetary front, Turkey raised its key interest rate to combat soaring inflation, while UK borrowing costs decreased following lower-than-expected inflation, making a Bank of England interest rate hike less likely in August.

As we step into the next week, the major focus will be the two-day policy meeting convened by Federal Reserve officials, commencing on Tuesday. The highly anticipated interest rate decision, due on Wednesday, will potentially impact financial markets significantly.

Concurrently, earnings season is escalating with a vast array of major corporations slated to release their reports. Giants from the tech industry like Microsoft, Meta Platforms, and Google’s parent company, Alphabet, will be in the limelight, along with influential entities like Visa, Mastercard, Texas Instruments, Coca Cola Company, McDonald’s, Boeing, AT&T, Verizon, Ford Motor Company, Chevron, and ExxonMobil.

The economic calendar of the week remains densely packed. Thursday will see the unveiling of the advance estimate for the second-quarter gross domestic product (GDP). To follow, on Friday, we have the release of the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation measure, which will provide insights into the current inflation scenario.

Moreover, the latest updates on home prices, including new and pending home sales for June, are also on the schedule, which could bring further attention to the state of the housing market.

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

Trading Signals CADCHF 190723

CADCHF – Following up on this trade, prices have hit our TP with 268 pips profit! Congrats to those who took this trade! 💪🔥💰

 

Trading Signals NZDCAD 190723

NZDCAD – Trade got triggered, great shorting opportunity near the top of the trend channel.

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Spencer Li

Birthday Reflections Upon Turning 37

2023 07 10 18 47 51 1

As I greet another year of life, I find it fitting to reserve this day for introspection, gratitude, and projection. This ritual of quiet contemplation serves not just as a moment of pause, but also as an opportunity for recalibration.

In no particular order, here are my areas of focus for the coming years, each one a beacon to guide my journey:

The idea of embracing new experiences, like an artist exploring different mediums, resonates deeply with me. Whether it’s mastering the culinary artistry of cooking, learning a new sport like surfing, losing myself in the rhythm of Salsa (hopefully some day), discovering the nuanced layers of fine wine, or dabbling in traditional and contemporary art forms, these pursuits represent the unquenchable thirst for knowledge that I hold dear.

The desire to nurture my relationships, to tend to the garden of friendship, has never been stronger. In the years to come, I intend to invest not just my time, but my attention, care, and love, into these vital connections. The richness of human connection is not in the number of friends and family we have but in the depth and authenticity of the bonds we cultivate.

In the realm of romantic relationships, I stand at the precipice of hope and commitment. I am learning, growing, and striving to be a better partner every day. It’s a journey of understanding, patience, and unending love that is as much about self-discovery as it is about discovering another soul. In the coming years, I aspire not just to find that extraordinary love but to build and nurture it with all the care and tenderness it deserves.

My journey towards personal growth includes a commitment to understanding the intricacies of the human mind. Diving into realms of psychology, philosophy, and cognitive mental models promises to unlock doors to self-awareness, thereby empowering me to navigate life’s maze with more wisdom and compassion.

A commitment to health, both physical and mental, remains a cornerstone of my life’s priorities. Regular exercise, mindful eating, and mental wellness practices are not mere activities, but a pact with myself to cherish and respect the gift of life.

My aspiration to traverse the globe remains unwavering, with the ambitious goal of experiencing 100 countries before I turn 40. Each journey represents a unique opportunity to broaden my horizons, to learn, to grow, and to create memories that will last a lifetime.

As I progress on this journey, I aim to espouse the principles of minimalism further. It is not about denying oneself but about channeling one’s focus, attention, and resources to what truly matters, to what brings joy, peace, and fulfillment.

Mindfulness, empathy, gratitude, and self-esteem are the pillars of my quest for personal growth. My ambition is to evolve continually, to be better at showing love, extending kindness, and celebrating the abundance of life.

My passion for enlightening and inspiring others through my writing, through sharing my thoughts, experiences, and learnings, is a flame that burns brighter each day. In the upcoming years, I plan to enrich my blog and various channels with more diverse and meaningful content.

Lastly, I will continue to seek avenues that allow me to make a positive impact in others’ lives. Whether through my career, volunteer work, or in the simple, everyday acts of kindness, I want my existence to resonate with purpose.

As I conclude this reflection, I extend my deepest gratitude to all those who have stood by me, supported me, and contributed to making my 37th birthday unforgettable. I look forward to the upcoming years with eagerness and optimism, ready to embrace all that life has in store.

 

 

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If you are excited to get more life hacks, also check out: “Beyond Financial Freedom: An Unofficial Guide to Living Your Best Life”

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Spencer Li

Weekly Market Wrap: Stocks Climb After Inflation Slows Down!

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Thumbnail banner weekly market wrap x3

 

For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (10 July 2023)
Click here to subscribe for the latest market report (17 July 2023)
Click here to see the archives of all our past market reports

 

Market Recap & Upcoming Week

Last week, market watchers were eagerly anticipating the release of US inflation data, which was expected to provide a much-needed direction for future monetary policy decisions. Experts predicted a notable slowdown in both headline and core inflation, with a projected modest rise of 0.2% from May to June.

This projection represented the smallest potential increase in core inflation since last year and signified a potential turning point for policymakers as they grapple with managing rising costs against the Federal Reserve’s 2% target. Despite the anticipated inflation slowdown, the current rate still indicated a possible resumption of interest-rate hikes by the Federal Reserve.

In addition to the inflation data, the resilience of the economy was put under the spotlight last week, as recent jobs reports showcased solid wage growth and a healthy yet slightly lower than expected payroll increase.

The Federal Reserve’s track record of ten consecutive meetings with interest rate hikes led many to expect a continuation of this trend in the upcoming meeting on July 25-26. However, the potential easing in inflation data could have led to a pause in interest rate hikes, adding another layer of complexity to the economic forecast for the rest of the year.

The earnings season is set to intensify in the week ahead, with several heavy hitters from various industries slated to release their financial reports.

Investors will be keeping a close eye on results from major institutions such as Bank of America, Morgan Stanley, and Goldman Sachs, along with powerhouse corporations including Lockheed Martin, Tesla, Netflix, IBM, Johnson & Johnson, and United Airlines.

The market will be keen to see how these giants have fared amid the ongoing economic conditions, and the updates could trigger significant market movements. Furthermore, the financial health and outlook of these influential companies can provide invaluable insights into the broader economic landscape and future trends.

Economic data releases in the upcoming week promise to offer a wealth of information on the global economy’s health.

In the U.S., the focus will be on the retail sales data for June released by the Census Bureau, shedding light on consumer spending patterns amid fluctuating inflation and employment dynamics. Additionally, several housing market indicators, including building permits, housing starts, and existing home sales for June, along with the NAHB’s Housing Market Index, will provide insight into the state of the U.S. real estate market.

International attention will be directed towards the latest inflation readings from the U.K., eurozone, and Japan, which will be closely monitored by investors and policymakers for signs of inflationary trends outside the U.S.

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

Trading Signals GBPUSD 120723

GBPUSD – Following up on this, we are up by 700+ pips profit, and very near to our TP!

Congrats to all those who took this trade! 💰🔥💪🏻

 

Trading Signals USDCHF 120723

USDCHF – Following up on this, it has hit and even exceed our 2nd TP! 💰🔥💪🏻

Congrats to those who held on!

 

Trading Signals PLTR 120723
Palantir (PLTR) – Following up from the video, prices have rebounded off the strong support!

 

Trading Signals USDCAD 120723

USDCAD – Following up on this, prices have started to move towards our TP. Will continue to hold and monitor.

 

Trading Signals USDSGD 120723
USDSGD – Unfortunately, prices did not trigger the upside breakout, and instead broke to the downside. This is why patience is important before entering a trade.

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Spencer Li

Weekly Market Wrap: NFP Jobs Data Weakening?

Thumbnail banner weekly market wrap x3

Thumbnail banner weekly market wrap x3

 

For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (03 July 2023)
Click here to subscribe for the latest market report (10 July 2023)
Click here to see the archives of all our past market reports

 

Market Recap & Upcoming Week

The U.S. labor market and inflation rates are showing signs of slowing down, albeit not stagnating, according to the latest data from the Labor Department.

In June’s NFP Jobs report, 209,000 jobs were added to the economy, down from May’s figure of 306,000, and the unemployment rate decreased to 3.6%. This performance exceeded initial expectations set by the Federal Reserve and Wall Street.

In addition, persistent labor demand has led to lowered predictions for the unemployment rate for the end of 2023, particularly in sectors affected by the pandemic.

On the other hand, inflation rates continue to exceed predictions.

The Fed’s Q4 2023 inflation forecast, excluding food and energy, has increased from 3.5% to 3.9%, suggesting possible rate hikes in future meetings. The key question now revolves around whether inflation will slow down faster than the job market, thereby influencing the future trajectory of monetary policy.

If inflation cools off sufficiently, the Fed could stop rate hikes, but if it remains high, additional rate hikes might be necessary to maintain the balance between employment and inflation.

The upcoming week is set to be packed with crucial financial information as earnings season gets underway.

Reports from some of the world’s most prominent financial institutions such as JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock are eagerly awaited. Additionally, key players from other industries, such as PepsiCo, Delta Air Lines, and UnitedHealth Group, will also be disclosing their earnings reports.

These reports will likely provide insight into the performance and future direction of these companies, as well as offer a sense of the current state of the economy.

Alongside these company reports, crucial economic indicators will be announced.

On Wednesday, the June Consumer Price Index (CPI) is scheduled for release, followed by the Producer Price Index (PPI) on Thursday. Both of these will offer valuable information about the current state of inflation in the economy.

To round out the week, the University of Michigan will release the preliminary reading of its Consumer Sentiment Index (MCSI) for July on Friday. This metric will provide a valuable measure of consumer confidence, giving a timely snapshot of the public’s overall economic sentiment.

 

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

 

Trading Signals AUDNZD 050823

AUDNZD – Prices continuing lower for our short positions, with 200+ pips profit in the money! 💰🔥💪🏻

 

Trading Signals AUDJPY 050823

AUDJPY – Following up from the weekly videos, after hitting our first target, we have now extended our TP to a more ambitious target! 💰🔥💪🏻

 

Trading Signals BTCUSD 050823

Bitcoin (BTCUSD) – Following up, prices are now testing prior swing highs, and there is a good chance of a new breakout soon.

We have adjusted a further price target to reflect more upsize, as we are now in the money. 💰💪🏻🔥

 

Trading Signals USDJPY 050823

USDJPY – Following up on this long trade, we are now 600+ pips profit in the money! Congrats to those who took this trade! 💰🔥💪🏻

We adjusted the target upwards since the price is so bullish, but it is also a good idea to take some profits first.

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