Asia stocks gain in face of world growth concerns?

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Derek  15 Jan 2019

Good Morning,

There was some more profit taking in the US yesterday. This morning Asia stocks gain in face of world growth concerns? The concerns came as China trade data sparked more global economy worries yesterday .... all forgotten this morning!

The S&P500 closed with a doji, to show uncertainty, still above the EMA8 line and below the 50 day moving average.

The HangSeng gave a cyclic signal in overbought territory yesterday, but the index only touched the EMA8 line. One must be very carefull of cyclic signals when in a trend. That is one of the reasons I prefer trend line breaks for action. The trend is your friend!

Bank of America is in such a trend and just broke the 50 day moving average. I followed the cyclic signal at the turn when divergence was in place, but for now I stay with the trend.

Boeing is also giving cyclic signals above the 200 day moving average, but far above my trend line. Cyclic signals are very accurate in a sideways market, but not so good when in a trend. It is then more a signal to show profit taking.

JSE Technical:
If you have been following these market reviews, you will know that divergence is my priority no. 1. When you get a double top, with cyclic confirmation, trend line break and divergence .... you can guess what I am doing! Well, all this can be seen on the chart of Impala Platinum.

In contrast, Discovery is in a trend and all cyclic signals are ignored. It just broke the 200 day moving average.

You need to prioritise signals to make decisions.
My signals:
1 Divergence
2 EMA8 and trend line breaks
3 Frontrunner must show direction and break
4 Cyclic signals
5 MACD change colour
6 HeatMaps must confirm whether we are overbought or oversold.

When it all happens together .... ideal world. But it is never that simple!

Enjoy your day
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