Author: Neeraj Khanna
Daily Market Intelligence
Daily Market Intelligence
Daily Market Intelligence
Global Focus Frontier Long
Global Focus Emerging Long
“This week, the Shenzhen and Shanghai indices fell over 3% and 1%,
respectively, falling into a Correction. The Shenzhen looks to be the
worst performing, falling below its 40-week moving average. It is now
on its way to retesting August 2016 lows. The Shanghai is still holding
2% above its 40-week moving average, but action this week has been
discouraging as it failed to rally above resistance at its 10-week moving
average. We advise caution and suggest holding back on new positions as
the markets continue to search for support.”
Global Focus Developed Long
“Australia’s ASX All-Ordinaries Index lost 0.6% this week, falling
for the first time in four weeks after once again rising to new
52-week highs early in the week. The index is in a Confirmed
Uptrend, however, it did pick up two distribution days and now
has four in the past five weeks. Given the increase, we expect some
consolidation after a 12% rally from November 2016 lows.”
European Focus Long
“European markets narrowly missed extending their winning streak
to six weeks after rallying 1% on Friday. For the week, the markets
closed 0.1% lower on average, but nine of 16 countries advanced.
The U.K. was by far the best-performing market, gaining 1.8% to
a record high and extending its streak to fourteen consecutive up
days. Several countries registered distribution days during the week,
but all markets remain in a Confirmed Uptrend. Five countries,
Portugal (-1.9%), Italy (-0.9%), Belgium (-0.8%), Austria (-0.7%),
and Finland (-0.7%), lost more than 0.5%.”
US Focus Long
“The U.S. market remains in a Confirmed Uptrend, aided by a strong rally in the FANG ideas
and a further jump in Financials. Distribution stands at four days for both the S&P 500 and
Nasdaq, with one day set to fall off the S&P next week. Q4 earnings season has begun and
will drive market direction over the next several weeks. We still view the upper channel line on
the S&P 500 as resistance, and a sharply rising 50-day moving average as support. “
