Shanghai: SSE Composite Index (.SSEC) Investors are waiting for the Federal Reserve Chairman Jerome Powell will speak at an economic meeting in Jackson Hole, Wyoming
Asian markets were mixed Thursday as investors digested a slew of corporate earnings.Japan’s Nikkei 225 (N225) rose 0.1%,while Hong Kong’s Hang Seng Index (HSI) fell 0.5%. China’s Shanghai Composite Index (SHCOMP) was flat. South Korea’s Kospi (KOSPI) fell 0.5%.
China’s largest electric car maker, which is also backed by Warren Buffett — declined 4.6% in Hong Kong. Its Shenzhen-listed stock lost 2.5%. The company reported a nearly 204% surge in net profit for the first half to more than 1.4 billion yuan ($205 million), but said itexpected its electric, hybrid and other “new energy” vehicle sales to slow down, and for overall profit to drop a “significant” amount in the third quarter because of weakening demand for cars and a cut in government subsidies for electric vehicles.
Henderson Land Development,which is owned by one of Asia’s richest property tycoons Lee Shau-kee, dropped 4.1% in Hong Kong. The company posted about a 50% fall in its net profit for the first half. It also said the US-China trade war and ongoing protests in Hong Kong have added uncertainties to Hong Kong’s property market.
Investors are still waiting for Friday, when Federal Reserve Chairman Jerome Powell will speak at an economic meeting in Jackson Hole, Wyoming. The Fed released minutes Wednesday from its July policy meeting. The minutes showed that most Fed policymakers supported last month’s rate cut, and noted that the Fed was keeping its options open about the future.
“The risk sentiment remains on the mend, with little coming out of the July Fed minutes to significantly alter rate cut expectations,” wrote Jingyi Pan, a market strategist for IG Group,in a research note Thursday.
Markets now almost fully price in a rate cut by the Fed in September, according to CME Fedwatch.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 2,896.59.
The projected upper bound is: 2,965.11.
The projected lower bound is: 2,800.67.
The projected closing price is: 2,882.89.
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 26 white candles and 24 black candles for a net of 2 white candles.
A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.
A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with SSE COMPOSITE) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 90.7429. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 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 53.04. 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 buy 10 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 4 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 3.105 at 2,883.436. Volume was 28% below average (neutral) and Bollinger Bands were 7% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,836.24 2,912.21 2,838.36
Volatility: 16 18 24
Volume: 15,685,391,360 17,302,904,832 22,777,468,928
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.
SSE COMPOSITE is currently 1.6% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 27 periods.
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