My Trading Strategy For Week of 12-16 June 2023

We will be having the FOMC meeting for the month of June from 13-14 June 2023. So my trading strategy for the week of 12-16 June 2023 shall cover before and after the FOMC Meeting.

The main questions on investors’ mind would be “will there be a rate hike pause?”, how is the possibility of rate hike vs pause?

This is how my previous week result far : My Trading Strategy For Week of 05-09 June 2023

We have BABA which has a 1.80% gain, SOFI which has a 14% gain, but we have a loss of 0.91% if we went into AAPL last week

I shall share this week stocks that I will be focusing.

I would be looking at these 2 stocks, which are in these 2 sectors:

• Chinese ADRs - XPeng Inc. (XPEV)

• Fintech - SoFi Technologies Inc.(SOFI)

Chinese ADRs - $XPeng Inc.(XPEV)$

I have a position on XPEV which I took on last Friday (09 June 2023).

I will be looking at XPeng Inc. (XPEV) because the architecture unveiled by XPEV called SEPA (Smart Electric Platform Architecture) 2.0 at a technology conference in Shanghai on April 16, is built into the model G6.

Model G6 was a new SUV that is based on the 800 V high-voltage platform and can get a 300-kilometer range in as little as 10 minutes on a charge.

The other model available from XPEV with 800 V-based is the G9.

XPEV has begun pre-sales of the G6, with prices starting at RMB 225,000 ($31,610) at a price significantly lower than the rival Tesla Model Y.

XPEV has identified the Tesla Model Y as its main competitor to the G6. The vehicle is positioned as an all-electric midsize SUV with a length, width and height of 4,753 mm, 1,920 mm and 1,650 mm, respectively, and a wheelbase of 2,890 mm, as shown in a regulatory filing in March.

Whereas the Tesla Model Y has a length, width and height of 4,750 mm, 1,921 mm and 1,624 mm and a wheelbase of 2,890 mm.

XPENG G6 (Photo: Business Wire)

XPeng Inc. (XPEV) Technical Analysis - Moving Averages

I would expect XPEV new model G6 to start getting pre-order after the good reception of the pre-sales price.

As seen from the TA-Moving Averages, I would think XPEV is worth a BUY for short term.

XPeng, Inc. ADR’s (XPEV) 10-Day exponential moving average is 8.55, while XPeng, Inc. ADR’s (XPEV) share price is $8.87, making it a Buy.

XPeng, Inc. ADR’s (XPEV) 100-Day exponential moving average is 9.92, while XPeng, Inc. ADR’s (XPEV) share price is $8.87, making it a Sell.

XPeng, Inc. ADR’s (XPEV) stock price is $8.87 and XPeng, Inc. ADR’s (XPEV) 50-day simple moving average is 9.58, creating a Sell signal.

XPeng, Inc. ADR’s (XPEV) stock price is $8.87 and XPeng, Inc. ADR’s (XPEV) 100-day simple moving average is 9.53, creating a Sell signal.

XPeng, Inc. ADR’s (XPEV) stock price is $8.87 and XPeng, Inc. ADR’s (XPEV) 200-day simple moving average is 10.26, creating a Sell signal.

Fintech - $SoFi Technologies Inc.(SOFI)$

I have indicated SOFI to trade for last week, this week I would think that they can benefit from the FOMC meeting.

Because if we look at the services offer by SOFI, we can see that the U.S. debt ceiling issue have been averted, so now questions is lending and refinancing are coming back.

The possibility of a rate hike pause is high and we shall look at how SOFI has perform in the past rate hikes in the following sections.

Sofi stock is disrupting the financial services industry. It offers customers a one-stop-shop for loans and other banking products.

Benefit of FOMC Meeting - Rate Hike Pause to SOFI

If we go back to 2022, after the Federal Reserve said that it would raise interest rates in 2022 at least three times, SOFI ended its uptrend.

There are only a few investors who would find a correlation between the market’s “risk-off,” or aversion to less established credit services firms, like SOFI.

As we already know that the market is a forward pricing machine, SOFI slump during the frequent rate hike already reflects minor headwinds ahead.

Financial institutions will usually thrive in higher interest rate environments. The more customer deposits banks have the more interest income banks earn.

But what will happen when the rate hike is paused in June, as growth investor, I would look at Sofi as a cross between a growing technology software firm and a fintech firm.

Recently, if we see how NASDAQ’s decline has caused PayPal (PYPL) stocks to drop.

But recent weeks, NASDAQ have been strong or rather stable, this could pulled SOFI’s share price higher as markets increased their exposure to online payment transaction firms.

We might be going through a valuation correction, I can see that it is moderating, I would look at SFI stock first.

SOFI have been rolling out new products. Customer satisfaction goes up, more and more customers would be coming back to sign up for their products.

SoFi Technologies (SOFI) Technical Analysis - Moving Averages

SoFi Technologies’s (SOFI) 10-Day exponential moving average is 7.22, while SoFi Technologies’s (SOFI) share price is $8.18, making it a Buy.

SoFi Technologies’s (SOFI) 100-Day exponential moving average is 5.91, while SoFi Technologies’s (SOFI) share price is $8.18, making it a Buy.

SoFi Technologies’s (SOFI) stock price is $8.18 and SoFi Technologies’s (SOFI) 50-day simple moving average is 5.85, creating a Buy signal.

SoFi Technologies’s (SOFI) stock price is $8.18 and SoFi Technologies’s (SOFI) 100-day simple moving average is 6.07, creating a Buy signal.

SoFi Technologies’s (SOFI) stock price is $8.18 and SoFi Technologies’s (SOFI) 200-day simple moving average is 5.63, creating a Buy signal.

Summary

These 2 stocks are all from different sectors as I wanted to spread my risk. We will be facing the FOMC meeting on 13-14 June next week, though the possibility of a rate hike pause in June seems high.

There is always still a possibility of otherwise.

I believe as investors, what we can do is to plan our trades based on events, understanding the business of the stocks and do our own analysis, we may use technical analysis or whichever suits your trading style.

Appreciate if you could share your thoughts in the comment section whether you will be looking at these 2 stocks, or maybe you can share what stocks would you be looking at for this week?

@TigerStars @Daily_Discussion appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.