Global Recession Fears .... Tencent's profit

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Derek  15 Aug 2019

Good Morning,

Markets are correcting on Global Recession Fears.

I got fooled by Trump's false bounce as the abc correction is still forming. I must take you back to the FrontRunner prediction that the low has not been reached for the S&P500 and many other indices. Now we are starting to have the lows and unconfirmed divergence is in place! The next step is a turning candle. FrontRunner is seldom wrong!

The abc correction is much more clear on the chart of the ASX. Notice that we have unconfirmed divergence in place.

American Tower Corp also reached resistance in overbought territory and started its correction. Notice how accurate FrontRunner predicted the turn.

I showed yesterday that Bank of America did not bounce convincingly. Notice how well trend lines worked for this share in the past. Best to wait for a trend line break here .... and I will show it when it happens as it is my favourite share in the U.S.

JSE Technical:
China's Tencent Holdings, the world's largest gaming company by revenue, warned on Wednesday of a difficult economic environment even as it reported a better-than-expected 35% jump in quarterly profit. Markets do not like warnings and that made Tencent and with it Naspers correct.

Do you see the abc correction and unconfirmed divergence for Naspers? I did not mark it.

Remember: When fear is on its peak and no one wants to buy shares .... that is the best opportunity, but only with divergence in place.

Enjoy your day.
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