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 were mixed as traders weighed the implications of higher US Treasury yields amid President-elect Joe Biden’s push to provide massive fiscal assistance to counter the impact of the pandemic. Japanese equity markets are closed for holidays and Treasury cash will not be traded until the London opening. Asian stock indexes fluctuated as South Korea turned lower after previously gaining as much as 3.6%. S&P 500 futures slumped
  • Chinese stocks fell on Monday as concerns over Sino-US tensions continued to weigh on the market, while a spike in new domestic COVID-19 cases also dampened sentiment. The CSI300 Index fell 0.1% to 5,492.74 late in the morning session, while the Shanghai Composite Index fell 0.2% to 3,561.77. The Hang Seng Index rose 0.9% to 28,122.93, while the Hong Kong China Enterprises Index rose 1.9% to 11,167.23
  • Stock futures fell in overnight trading Sunday as investors assessed the prospect of more Covid-19 aid stimulus. The Dow Jones fell 130 points. S&P 500 futures are trading 0.5% lower and Nasdaq 100 is down 0.3%. US stocks hit a record Friday after Biden said he would draft proposals this week for trillions of dollars in fiscal support to fight the economic toll from the soaring virus case. Oil eased some of last week’s spikes and gold fell even further
  • Investors are evaluating extended valuations and some signs that global stocks may be running too hot
  • Oil prices hit their highest level in almost a year on Friday, up 8% this week, on the back of Saudi Arabia’s pledge to cut production and strong gains in major equity markets. West Texas Intermediate (WTI) crude futures closed at $ 52.24 a barrel, up $ 1.41, or 2.8%, also the highest since late February. WTI posts a weekly gain of 7.7%
  • JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co., are among those reporting its earnings
  • EIA crude oil inventory report will be released Wednesday
  • Christine Lagarde of the European Central Bank spoke at an online conference on Wednesday
  • US consumer price inflation figures will be released Wednesday
  • Biden plans to draft a fiscal support proposal on Thursday
  • Fed Chair Jerome Powell took part in the webinar on Thursday
  • US initial jobless claims data will be released Thursday
  • US retail sales, industrial production, business inventory and consumer sentiment figures are due Friday

Market Analysis SP500

After breaking the double top area 3770 the rally will focus on the 3828 and 3880 levels. Buy levels : 3620-3560, Sell levels : 3825-3855

Market Analysis Dow Jones

Dow has surpassed all resistance limits and the highest price is expected to be in the range 31130-31200. Opportunities for consolidation will focus on the 3000, 30590, 30400 and 29950 levels. Buy levels : 30500-30200, Sell levels : 31130-31240

Market Analysis Nasdaq

The consolidation will focus on the 12860-12700 level. Dropping below the 12700 level will trigger a rally at the 12500 and 12375 and 12170 levels. Strengthening will focus on the 13228 and 13388 levels. Buy levels : 12850-12500, Sell levels : 13200-13400

Market Analysis Hangseng

Can hangseng continue the link up to 28214 and 28700? To be able to go up there, a consolidation is needed first because the zinc hangs are already in the overbought level and the consolidation level will focus on the range 27730-27455. Buy levels : 27460-27230, Sell levels : 28210-28300

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 that 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 past 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
  • The company’s equity capital investment program shows 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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