Hong Kong: HANG SENG INDEX (.HSI) rise as China confirms trade deal signing next week
U.S. stocks climbed in early trading on Thursday as investors cheered confirmation from China that its top trade official will head to Washington next week to sign a preliminary trade deal.
The “Phase 1” deal is the opening step on a possible path toward a broader agreement between the nations. President Donald Trump has said he will travel to Beijing after the initial signing to start the second stage of talks.
Every major index is on track for a record as Wall Street distances itself from a bout of anxiety over the last week because of tensions between the U.S. and Iran. Both nations appear to be standing down in order to avoid armed conflict.
Technology stocks led the gains in the early going. Apple rose 1.6% and Nvidia climbed 2.3%. The sector is particularly reliant on trade because of extensive sales and supply chains in China.
Banks and other financial companies also rose as bond yields edged higher. Citigroup rose 1% and Capitol One gained 1.3%. Higher bond yields allow financial institutions to charge more lucrative interest on mortgages and other loans.
Bond prices fell. The yield on the 10-year Treasury rose to 1.89% from 1.87%.
Utilities and real estate companies lagged the market as investors took a more bullish stance. Energy stocks fell as crude oil prices declined.
KEEPING SCORE: The S&P 500 index rose 0.5% as of 10 a.m. Eastern time. The Dow Jones Industrial Average rose 122 points, or 0.4%, to 28,869. The Nasdaq rose 0.7%. The Russell 2000 index of smaller company stocks rose 0.2%.
OVERSEAS: Asian markets made solid gains as the trade deal between the U.S. and China progresses. Japan’s Nikkei 225 rose 2.3% and Hong Kong’s Hang Seng climbed 1.7%.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 27,428.05.
The projected upper bound is: 29,428.00.
The projected lower bound is: 27,760.79.
The projected closing price is: 28,594.39.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 41.7072. This is not an overbought or oversold reading. The last signal was a sell 4 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 65.13. 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 4 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 101.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 473.080 at 28,561.000. Volume was 10% above average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,279.10 27,247.98 27,539.50
Volatility: 16 20 19
Volume: 1,371,193,984 1,497,175,040 1,686,056,192
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 3.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 15 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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