Tech takes brunt of Trade Tensions .... Poor Trend Factor

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Derek  21 May 2019

Good Morning,

Stocks in the U.S. closed lower as tech takes the brunt of trade tensions. The East is mixed as investors weigh the implications of the Huawei banning by Trump? Just more uncertainty that markets do not like.

You can see the uncertainty on the graph of the S&P500 with another doji.

The ASX was not bothered with all this uncertainty and even broke top resistance yesterday. It is also hesitating this morning.

It was tech stocks that got hammered and the biggest drop was by KEYS Technologies. Notice the gap and the Frontrunners predicts that the low has not been reached. If so, then this is a continuation gap.

The Health Sector is slowly recovering from the "Free for All Medicare". UnitedHealth Group broke top resistance and even managed to have a positive trend factor again.

JSE Technical:
The JSE just followed world markets lower.

You can see this on the graph of the Satrix40 that did not manage to break the EMA8 line. We remain in negative oversold territory.

The Pioneer Food Group published poor results yesterday and that made the share break bottom resistance with a -11.03% drop for the day. Notice the dark red Trend Factor .... you should not be in any share that has such a disastrous Trend Factor.

I heard yesterday that any company that wants to list in the U.S. needs at least a $2 billion turnover. I was wondering if the JSE has such a requirement? I could only find that you must have at least R 5m cash to list. I wonder how many of them still comply?

Enjoy your day.
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