Hong Kong: HANG SENG INDEX (.HSI) forging higher, building on solid gains from the previous week as hopes for a U.S.-China trade continue to rise
Stock markets in Asia were forging higher Monday morning, building on solid gains the previous week as hopes for a U.S.-China trade continue to rise.
Asia Pacific markets were mixed on Monday as investors digested better-than-expected jobs data in the U.S. and reports of progress in trade negotiations between Washington and Beijing.
Mainland Chinese stocks were mostly lower on the day, with the Shanghai composite declining slightly to 3,244.81 and the Shenzhen composite falling 0.551% to 1,770.20. The Shenzhen component, on the other hand, was 0.11% higher at 10,351.86.
Meanwhile, Hong Kong’s Hang Seng index gained 0.32% in its final hour of trading.
Earnings Season Worries
First quarter earnings season kicks off on Friday, April 12, with J.P. Morgan Chase announcing before the market opens.
According to Shayne ‘Jack’ Heffernan, “Right now expectations are for a negative 3.9% comp from last year. That’s the worst comp and the first negative comp since 2Q of ’16.”
“Analysts have been taking their numbers down dramatically over the course of the quarter. We started the quarter basically thinking up 3% now we’re looking more like down 4%,” he added. “That’s the biggest decline since the first quarter three years ago.”
Shayne ‘Jack’ Heffernan and other analysts don’t think most investors are prepared for disappointing numbers. However, there are some who believe investors may be able to ride out the weakness due to an optimistic outlook for a trade deal and the dovish Federal Reserve.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 30,851.08.
The projected lower bound is: 29,426.09.
The projected closing price is: 30,138.58.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.3318. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 69.21. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 28 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 140.830 at 30,077.150. Volume was 32% above average (neutral) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,283.16 28,622.99 27,427.60
Volatility: 18 16 22
Volume: 2,039,111,168 1,926,489,216 1,859,753,984
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
HANG SENG INDEX is currently 9.7% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 3 periods.