HANG SENG technical outlook – market update

The Chinese stocks have built their lows in the manner I wished US stocks would have done. A substantial weekly reversal outside the weekly Bollinger plus we got a weekly 13. The market lost almost 70% and H-shares were below 10 times earnings in the only economic powerhouse left. They look like the winner right now as commodities got cheap and the demand for cheap goods rising in tougher economies.

The 21000 points down with a 25% retracement is at 16500 and the 38% at 19000- therefore buying weakness in the Chinese story is a good way to add some good momentum, if you want to put up a basket for the relief rally due into Feb 2009.

The NDX and SPX trend in low volume markets to the targets of 1350/60 NDX and 980/90 SPX and the window dressing operation is coming to an end and we should see some weakness going into next week.


~ by behindthematrix on October 31, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: