Asia slide after US sell-off .... Each graph tells a story.

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Derek  13 Nov 2018

Good Morning,

International:
The Asia markets also slide this morning after the US tech sell-off. The Market is starting to show the effect of the Trade-War for future returns.

Lets look at the sequence of events for the DOW. First the doji came while the DOW was overbought with the HeatMaps all red. The next day the doji was confirmed with a evening star formation, a FrontRunner break and a red MACD bar. The next day the big sell-off.



It is the technology shares that got hit the hardest. Lets look at my OLD favourite NVIDIA corporation. It touched my resistance line 3 times and could not break it. (first warning) The last touch was done with a doji. The next day the doji was confirmed with a break below the EMA8 line, a FrontRunner break and a red MACD bar. The next day the low was lower than the previous day's low and so was the high, already showing correction. Then the sell off. As you can see each graph tells a story, you only need to read it.



Let's stay with my OLD favourites, as even they make corrections like all shares. The major item for Bank of America was the trend line break. You can see the other indicators on the chart as mentioned before.



Lets show one more. I warned yesterday about Berkshire Hathaway that made a tripple top. I just want to show here that all the signals were in place, except that my trend line was not drawn tight enough. But I ignored the trend line and followed the tripple top.



JSE Technical:
Like world markets, the JSE did not escape this correction either.

I am not going to repeat the same story for the JSE financial sector. I can only add, notice the engulfing bear candle at the start of the correction.



As mentioned yesterday .... world markets are in a tough spot due to the Trade-War. And who must you thank? I am not saying his name ....

Enjoy your day.
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