The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were relatively flat as they digested gains from the prior two days of gains. Some sideways consolidation would be constructive as the indices have gained 4–5% since retaking their respective 50-DMA on October 11, and are up 8–10% from early-October lows.
Symbol: COM7.TH
APAC Weekly Summary
We are noticing a shift in APAC market leadership. India, which has been a leader for most of 2018, is now pulling back
significantly from highs. We downgraded India to a Downtrend on Monday, September 24. On the other end, we are more bullish
on Japan, which was flat for much of the year but has outperformed in recent weeks. With a FTD in Hong Kong last Friday
(September 21), both Chinese markets are back in a Confirmed Uptrend, but conviction that a true bottom is behind us remains
low. With China’s National holiday next week, we expect volume to remain low for the rest of the week.
In this week’s note, we go over our recent market condition changes in Hong Kong and India and reiterate our bullish view on
Japan. More Japanese stocks are breaking out recently, which is an encouraging sign. The majority of emerging markets are still
below their 40‐WMA with significant resistance, but we have provided EM ideas (excluding China/HK) with solid O’Neil Ratings
and Rankings for our mandated clients. Among our Focus List ideas, we highlighted high conviction EM ideas: Samsung SDI
( SCT.KR; 006400:KS ) and Koh Young Tech ( KYX.KR; 098460:KS ).