Trump blames the FED for Market collapse? .... FEAR and GREED

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Derek  15 Oct 2018

Good Morning,

International:
Trump is blaming the FED's interest rate increases for the stock market’s collapse. In turn everyone else is blaming Trump's TradeWar. You can decide yourself? My pick is 99% Trump and 1% FED .... as you can see, I do not have much confidence in this man. Some analysts say that the market’s nightmare may be far from over?
The East resumed their fall this morning with tech stocks leading.

Let’s stay with the technical indicators as we will have no influence on what Trump, nor the FED do.

The NASDAQ bounced back with a FrontRunner break and a green MACD bar. No Trend or EMA8 lines are broken yet. What I do not like is the dip of FrontRunner below the bottom green oversold lines .... predicting that a lower low is still coming?



The HangSeng also made a green MACD bar with a FrontRunner break on Friday and wants to close its gap only to fall back again this morning. The only difference here is that FrontRunner did not break below the oversold lines to warn about a further low. Notice that todays low is higher than Friday's and the High is lower.
Markets are still very uncertain about the bottom.



None of the Banks made a confincing break yet. Bank of America touched support and then bounced to close positively without any trend line breaks. The close was also much lower than the high of the day .... not very convincing!



Steven Bugalow in the US base his whole system on EMA8 breaks only. I counted only 20 EMA8 breaks in the S&P500. Kohls Corporation is one of them.




JSE Technical:
The JSE had a very strong bounce from a very oversold territory.

The strongest bounce came from Naspers. Notice the oversold HeatMaps (dark green). Trend line, EMA8 line and FrontRunner average breaks can be seen on the chart. The % bounce was the same as Tencent's.



FirstRand did the same. I zoomed out a bit to show the support where the bounce came on. I also marked where FrontRunner broke up and the MACD started making green bars.



Always remember: “Markets are designed to frustrate you and move on FEAR and GREED!” AND wait for those trend line breaks!

You must enjoy your day.
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