Australia’s ASX All Ordinaries Index gained 1.1% this week. The index is facing resistance along its 50-DMA and trading 3% below its 52-week high. It is in an Uptrend Under Pressure with five distribution days. One distribution day expires next week.
Author: Midhun Parameswaran
Global Focus Emerging
The CSI 300 closed with a narrowed loss of 0.12% as of Thursday this week. The market was shifted to an Uptrend Under Pressure following Monday’s heavy selloff. The current distribution day count is three. The index found support at and then traded around its converged 100- and 50-DMA (~4,912, -0.7%). Next support lies at previous lows of ~4,663 (-5.8%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive growth.
China A Shares
The CSI 300 gained 0.95% on lower and below average volume and remains in an Uptrend Under Pressure with eight distribution days. The index closed around its 50-DMA (~4,889, +0.02%) with next resistance at the 100-DMA (~4,958, +1.4%) and support at July 28’s low (~4,664, -4.6%). Investors parsed marginally improving October financial data, with M2 up 8.7% y/y (consensus 8.36%) and new loans of RMB 0.83T (consensus RMB 0.74T). Trade growth beat expectations on resilient overseas demand and increasing domestic energy demand. But factory gate inflation (PPI +13.5% y/y) remained at a historic high. Real estate surged on expectations of regulatory easing following a rise in new mortgage loans in October’s total social financing and the restart of debt issues by domestic developers. Defense outperformed on a positive outlook following clues in Q3 earnings. Food and beverage pulled back from a price hike-fueled rally. Coal mining stocks retreated further on weakening prices. Health Care was rattled by positive updates from Pfizer on COVID pills and domestic drug price negotiations. We will stay patient until there are more positive policy signals or signs of a sustained upward momentum. Investors should be cautious, disciplined, and selective amid strong volatility and sector rotation.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq found support near their respective 10-DMA, eventually closing ~1% off all-time highs for the week. Support below this level remains the rising 21-DMA (S&P 500: 4,603; Nasdaq: 15,515). The distribution day count remains low at three and one, respectively.
European Focus
On Thursday, the Stoxx 600 ended 0.38% above last Friday’s close. Of the 17 indices we cover, 11 are in a Confirmed Uptrend, one in a Rally Attempt, and five in an Uptrend Under Pressure.
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 0.2% this week. The index is trading along its 50-DMA and closed 2% below its 52-week high. It remains in an Uptrend Under Pressure with four distribution days, after adding one this week. Two distribution days will expire next week.
Global Focus Emerging
The CSI 300 gained 0.95% on lower and below average volume and remains in an Uptrend Under Pressure with eight distribution days. The index closed around its 50-DMA (~4,889, +0.02%) with next resistance at the 100-DMA (~4,958, +1.4%) and support at July 28’s low (~4,664, -4.6%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 lost 1.35% on higher and close-to-average volume and remains in an Uptrend Under Pressure with eight distribution days. The index lost support at the 50-DMA (~4,888, +1.0%) with next support at July 28’s low (~4,664, -3.7%). Next resistance is at the 100-DMA (~4,974, +2.7%). October official manufacturing PMI slid further to 49.2 (from 49.6) on weaker demand and supply. Metaverse-related stocks led gains following Facebook’s rebranding to Meta. Consumer-related stocks such as food and beverage outperformed on price hike expectations. Electronics went up on expectations of demand recovery following improving Q3 earnings. Tourism stocks led losses amid rising domestic COVID cases following disappointing earnings from leaders. Cyclicals weakened further on lower commodity prices after continuous regulatory efforts. Real estate-related sectors underperformed amid persistent credit worries. Contract Research Organization stocks sold off sharply on lofty valuation worries following signs of trimming by some institutional investors. The market remains volatile with strong sector rotation. Upward momentum is weak with an elevated distribution day count. We will stay patient until the CSI 300 breaks above ~5,000 on good volume. Investors should adopt a cautious, disciplined, and selective approach.
