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-- 17.0000 STI shows strength; banks in focus and one ETF to kickstart your investment journey
Hi everyone,
#ICYMI
Moving forward, I will be answering some questions that have been posted in the Learn Premium Group. This group was created by the moomoo educational team, designed to help you learn about investing. Here, you'll find daily market updates and premium investment courses to help you build your trading strategies.
Of course, you can also ask questions on topics that interest you, and group admin @Ciciwill collect them for me to answer. Welcome to join and engage with thousands of like-minded investors in the group!
Thank you for the questions this week! Moving forward, I will attempt to answer your questions in a single post, hopefully you can get some insights from my responses!
Banks back on the radar
Unsurprisingly, Singapore banks are in focus this week, especially after the US Federal Reserve announced an outsized 50 basis point cut on Wednesday.
To answer the questions from @105268562 and , the trio of local banks have traditionally been seen as stable blue-chip stocks deserving of an allocation in one’s portfolio. As such, Singapore banks are bellwethers for Singaporean investors. Both $DBS (D05.SG)$ and $OCBC Bank (O39.SG)$ are showing strong bullish momentum for the long term.
If you are a short term trader, DBS definitely would be a good time to take profits now since we are re-testing the recent swing highs.
However, if you’re holding onto OCBC, a weekly close above 14.80 will signal further upside. 5% is always a good point to take partial profits.
Zooming out of the banking sector and into the broader Straits Times Index (STI), the short-term outlook for the STI is looking positive. With a close above 3,600 on Thursday, it has surpassed its previous high in 2019. Contributing to the rally will still be the REITs and the 3 banking counters. S-REITs have been performing exceptionally well.
Markets are riding on the risk-on sentiment as optimism builds in the city state after economists surveyed by MAS recently upgraded the country's 2024 growth forecast to 2.6%.
Additionally, following the recovery from the covid pandemic, Singapore has taken the lead as a regional financial centre and still has further potential growth due to its stable economy and favourable geopolitics.From a technical perspective, as long as STI holds above 3550 support level, investors can expect further upside with STI pushing higher towards 3700 resistance, which is also a psychological level.
Crude oil and oil-related stocks
On crude oil - a question from @Kopimoney, shares of PetroChina (857.HK) have risen about 2.3% over the past 5 trading sessions, though it is still down more than 16% over the past month. However, the stock is now currently holding above the 5.47 support. If we have a weekly candlestick close above this level, we could very well see a bounce to 6.35 resistance. However, breaking below 5.47 support will see price drop further to 5.04 support next.
As for the price of oil, i would advise only experienced traders to touch this asset. It is volatile and mostly politically driven
It's never too young to get started on investing!
Finally, this is probably my favourite question of the week. “As a student, i am ready to start investing, any good ETF recommendations?”
To @Ong Chen, we have all been there before – as a beginner starting on our investing journeys, feeling confused and intimidated by the wealth of options in the market. Where should we start? What should we buy? How much money should I put in?
I am glad to see young individuals – students even – thinking about entering the market. Yes, it’s never too early to start.
But one should be careful when entering the markets for the first, especially if you are a student with limited capital.
For a start, it is a good idea to engage in regular savings plan in an ETF. For students who wish to play it safer and stick to a "time in the market" approach, they can consider investing in the S&P500 ETF.
The S&P 500 ETF is an excellent starting point for beginner investors, particularly students with limited capital, for several key reasons:
1. Diversification: The ETF tracks the S&P 500 index, which includes 500 of the largest U.S. companies across various industries. This broad exposure reduces the risk of relying on the performance of a single stock, offering a more balanced investment approach.
2. Affordability: S&P 500 ETFs typically have low fees and allow fractional share investing, meaning students can start investing with small amounts of capital. This makes it accessible for beginners who may not have significant savings.
3. Consistent Growth: Historically, the S&P 500 has delivered consistent returns over the long term, making it a reliable option for building wealth gradually. For students, this long-term growth potential can be a solid foundation for their financial future.
4. Simplicity: The ETF is easy to understand and manage compared to more complex investment options. It provides exposure to a wide range of companies without needing in-depth knowledge of individual stocks.
Overall, the S&P 500 ETF is a low-cost, diversified, and beginner-friendly investment option for students.
Hope this helps, and good luck on your investing journey!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Invest With Cici : Awesome! Love your answers, hope everyone asks more questions, Isaac is a treasure. heh
The partners who asked the above questions will be rewarded 88 points by cici. 
Search "Learn Premium Group" to apply to join our group.
103656173 : What's the difference between the S&P 500 ETF and theWhat's the difference between the S&P 500 ETF and the Nikko AM STI ETF?
Invest With Cici 103656173 : Tracking different stock indices, the SPX refers to stock indices listed on the US stock market, while the STI refers to stock indices listed on the Singapore stock market.
mr_cashcow Invest With Cici : Hello, my question is regarding the risk of Japan carry trade has it blow over or is it something we should still keep an eye out on and also how will it affect us again if BOJ were to increase their interest rate again will we see another major sell off from people scrambling to cover their carry trades?
Invest With Cici mr_cashcow : copy that, will be recorded in next week’s qns![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ValueHeiress : Q1. Is it a good time to enter spot gold/silver since the fed has began to cut rates.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Q2. Which reits in the singapore markets in ur view to enter? now or later to enter?
These are the questions for issac. Thank you
103656173 Invest With Cici : So buying SPX is investing in American companies, while buying the other is investing in Singapore companies.
Invest With Cici 103656173 : yes, correct
ZnWC : Here is my question for Issac:
Some said Fed rate cut will benefit REIT stocks because low interest rates will encourage more to buy property. But some REIT stocks are facing pullback while others surge. What other factors should we be looking at when investing in REIT? To minimize volatility risk, is REIT ETFs a better choice - diversification? What stocks should we look (or avoid) at amid further rate cuts in Q4?