What is CFD Trading?

CFD trading is a method that allows individuals to trade and invest in assets by engaging in a contract between them and a broker, instead of acquiring assets directly. Traders and brokers agree among themselves to imitate market conditions and settle differences between themselves when positions are closed. CFD (short for “Contract for Difference”) offers traders and investors the opportunity to profit from price movements in financial markets without owning the underlying instrument

Summary

  • Asian stocks on Friday slipped from records they hit the day before, but the prospect of a US coronavirus aid package left some investors in the mood to grab stocks and other riskier assets
  • US stock index futures traded slightly lower in overnight trading on Thursday, after the main average closed at new highs. The Dow Jones fell 44 points. S&P 500 futures are down 0.09%, while Nasdaq 100 futures are down 0.17%
  • A US bipartisan deal “seems imminent,” said Senate Majority Leader Mitch McConnell, but it may take hard work over the weekend to get through Congress
  • Investors previously picked up unexpectedly big hikes in jobless claims as a sign both sides will be pushed towards a deal. Treasury yields ticked lower
  • The Bank of Japan on Friday extended a grant scheme for companies hit by the coronavirus pandemic and vowed to initiate checks on more effective ways of hitting the 2% inflation target, as a surge in new infections threatens to undermine a fragile recovery. As widely expected, the central bank kept monetary policy steady including its pledge to guide short-term interest rates at -0.1% and 10-year bond yields around zero
  • As the dollar’s selloff continued, many investors put their focus on Bitcoin, which has soared 10.5% to a record high of $ 23,777, taking profits this year past its target of 220%. Bitcoin was last up 5% at $ 22,414
  • A no-deal Brexit means the UK risks entering sub-zero interest rate territory, he said. If there is no deal, it will bring back negative interest rate risk from the Bank of England, and the UK economy goes into negative territory
  • What other reasons can be taken to continue to weaken and pressure the USD? Let’s wait and see
  • Oil prices fell on Friday but remained within touching distance of nine-month highs reached overnight as surging COVID-19 cases weighed on fuel demand and US lawmakers continued to fight for a $ 900 billion economic stimulus package

Market Analysis SP500

Strengthening is still dependent on US stimulus news and for the time being the gains will be limited at 3725-3800 levels. A steady decline below the 3690 and 3655 levels will trigger consolidation to the 3603 and 3560 levels. Buy levels : 3603-3550, Sell levels : 3715-3770

Market Analysis Dow Jones

A steady decline below the level of 30155 is the initial signal for consolidation at the 29920 and 29510 levels. Dow gains will still focus on the 30375, 30440 and 30560 levels. Buy levels :29920-29500, Sell levels : 30115-30300

Market Analysis Nasdaq

A steady gain above 12610 will again trigger a rally up to the target levels 12745 and 12810. On the other hand, a steady weakening below the 12600 level will trigger a consolidation to the 12400-12205 level. Buy levels : 12400-12220, Sell levels : 12745-12810

Market Analysis Hangseng

Stable weakness below the 26440 level will again trigger the rally at the 26230, 26125 and 25890 levels. Stable gains above the 26440 level will continue to maintain the bullish momentum Hangseng to re-test the 26750 resistance. Buy levels : 26230-23000, Sell levels : 26400-26600

CFD US Sheet

Starbucks Corporation (NQ.SBUX) (Volume  10.349,36 K  52 Wk Range  50,02 – 95,93)

Overview

  • Starbucks Corporation currently has a negative book value but is trading at a higher Price / Asset ratio (3.46) than its median counterpart (1.54)
  • The book value of SBUX-US equity is not positive and indicates that ROE versus P / E analysis is not meaningful to determine whether the company has an operating or growth advantage
  • The change in annual earnings (relative to peers) is better than the change in earnings (relative to peers), suggesting the company is more focused on revenue
  • The company’s relatively low gross and pre-tax margins indicate an undifferentiated product portfolio and less control over operating costs compared to peers
  • Compared to selected peers, SBUX-US has had faster revenue growth in previous years and the current P / E ratio indicates faster growth in the future which indicates superior growth expectations
  • SBUX-US has the financial and operating capacity to borrow quickly

Facebook Inc (NQ.FB) (Volume  30.333,67 K52 Wk Range  137,1 – 304,67)

Overview

  • It is trading at a lower Price / Book multiple (6.15) than its median counterpart (22.38)
  • The market expects FB-US to grow more slowly than its peers and its median ROE to decline
  • FB-US has a relatively high profit margin when operating with a median asset turnover
  • The change in annual earnings (relative to peers) is better than the change in earnings (relative to peers), implying that the company is more focused on revenue
  • FB-AS’s current and over the past five years asset returns demonstrate that its relatively high return on operations can be sustained
  • The company’s relatively high gross and pre-tax margins indicate a different product portfolio and tighter controls on operating costs compared to peers
  • While FB-US earnings growth in recent years has been around the median peer, the below-stock median P / E ratio suggests that the market is likely to see the company’s long-term growth prospects fade
  • The level of a firm’s investment in capital indicates that it is likely to underinvest in the business with above average returns
  • FB-US has the financial and operating capacity to borrow quickly

Walmart Inc(NQ.WMT) (Volume  11.327,36 K   52 Wk Range  102 – 151,33)

Overview

  • Current Price / Book 5.37 is about the median across its peer group
  • The market expects WMT-US to grow at the same rate as its peers and to maintain the median return it has produced today
  • WMT-US’s average net profit margin and relatively high capital efficiency provide some operating leverage
  • The change in annual earnings (relative to peers) is better than the change in earnings (relative to peers), implying that the firm is more focused on earnings
  • WMT-US’s current and over the last five years return on capital is around the equivalent median and suggests that it lacks any particular operational advantage over peers
  • The firm’s margins are around the median of peers and do not represent any price benefit or operating cost advantage over peers
  • While WMT-US earnings growth has been below its peers’ average in recent years, the market still gives shares a P / E ratio of around median equivalent and appears to see the company as a long-term strategic bet
  • A company’s equity capital investment program indicates that the company is underinvesting in the business that produces an equivalent average return
  • WMT-US has the financial and operating capacity to borrow quickly

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The rate and other information rendered herein by education & analysis PT Soegee Futures has been obtained from sources we believe reliable, but we can’t represent that they are complete and accurate. We are not responsible to any offer to sell or solicitation of an offer to purchase base on the rate and information contained .

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