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This Week Highlight - What To Lookout For in Y2022?
After a rough and volatile year in 2021, we have finally arrived at the January month of Y2022. With the crunching effect of Coronavirus and turning into Omicron now, the world is still wondering how many more folds of mutation will surface before the human reaches the end of this dark tunnel.
In Y2022, we foresee there could be more volatility in market and the global economics will face more shortage in liquidity after the pandemic stimuli end in April for both U.S. and Europe. Literally, here are few things we need to look out for this year in order to protect your investment monies safely:
1) Tapering Exercise - The U.S. FED policymakers have made known openly many times in Q4 2021 on their intention to shave the balance sheet of USD8.3 Trillion from Government's budget deficit. This will be done in Y2022 but yet to mention the dates. In our opinion, there will be most probably 2 rate hikes this year in order to trigger a tapering program. Though some traders expect 3 rate hikes, we think one in the first semester and the other in second semester will be "disastrous" enough to rock the global markets!
Hence, pay attention to the rate tightening most likely in April/May and Oct /November seasons. These actions will follow the corporate earnings of huge companies in U.S. and European markets.
2) Weakening Dollar - While the U.S. Government is planning to repatriate the fund to U.S. soil through the tapering exercises, we all know that the U.S. is facing a challenge of fund shortage in paying Government bills. On one hand, they want to increase rates to control inflation and money back to the U.S. banks, the other side will continue to print Dollar for supporting sovereign policies like infrastructure building, financial bonus to covid families, tax incentives etc.
When Dollar tanks, lookout for Gold prices to surge and this will influence Silver and commercial metals. Construction companies will need to adjust their risk margins for undertaking new projects. Farmgate prices for food will follow suit and cause stagflation when salaries cannot keep the pace of rapid rising prices.
3) OPEC+ countries have been discussing to increase global supplies by 400,000 barrels on daily basis from February onwards. Even this plan might commence, it will have little downside effect on Crude due to shrinking shipment on global basis and shortage of energies from post effect of pandemic crisis. In line with weaker Dollar and the flamboyant nature of OPEC leaders, they may reverse the policy in mid-year and continue to push the Crude prices to above USD90 /barrel.
In summary, this year will be subject to some major market factors stated above and that could trigger a series of risk factors if Omicron mutates into another new wave. As long as the global travelling is still on limitation, every country in the world will be facing shrinking in economic growth and reducing GDP.
Stay alert to watch the market. There could be some inverse opportunities for you soon!
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The U.S. stimulus worth USD1.9 Trillion has been approved by the House and waiting to be signed into law by President Biden. Target timeline to complete the signatory on the dotted line is today, 14 March 2021. That also means President Biden has to execute his pen power in order to continue the issuance of unemployment benefits to low-income Americans after the expiry date. Last week, Dow Jones market clocked the historical fresh high again on Wednesday when it closed at 32,297 points. The worries on inflation pressure as an eye-washer to long traders have become a bear-trap. Sometime back, we have mentioned in this snippet on the ironical sarcasm of inflation in U.S. economy while so many Americans are cash-strapped due to loss of jobs. Since we are expecting the U.S. stimulus to be rolled out in March, the expanse of this public fund will be able to last for estimate 5-6 months. Practically, we expect the inflation will build up at strongest level sometime in mid-April to end
CALGARY, AB , Nov. 11, 2021 /PRNewswire/ - Sundial Growers (Nasdaq: SNDL) ("Sundial" or the "Company") announced today that that its Board of Directors (the "Board") has approved a new share repurchase program (the "Share Repurchase Program") which authorizes the Company to repurchase up to C$100 million (the "Share Repurchase Amount") of its outstanding common shares ("shares") from time to time at prevailing market prices, enabling Sundial to opportunistically return value to shareholders. Pursuant to the Share Repurchase Program, Sundial may purchase shares from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, derivatives, accelerated or other structured share repurchase programs, or other means. The manner, timing, pricing and amount of any transactions will be subject to the discretion of Sundial and may be based upon market conditions,
Hello everyone. It’s a bit late to do analysis for trading today. Here is my analysis support and resistant guide for your. FUTU support level is 123 now. Please take note. It must close above 126, then, you can continue to hold. Otherwise, your sell some profit first. To average down your cost. Once the price breakdown 123, will look for the support at 116. If the price breakup 126 and we can continue to hold. I will give your future resistant. TESLA for short trade, it went to above 600 and drop again. It still look’s good. If not breakdown to 550 again. We still look for TESLA sideway between 550~600 for the next 3 to 5 trading days. APPLE, no matter how still at the normal price range movement. Support at 122, resistant at 128. I dont think it breakdown 120 yet. Still can hold for long term. NIO looks went to 34.9 and drop again. If it hit 32 and not breakdown, it can hold for long term. It look’s good for NIO. Dont need to worry too much. Anyway, market movement we cant predic