The Fang Index - Broke Below its Long Term Trend for the First Time In 5 Years

The FANG Index - Losses Its Bite ! The FANG index broke below its long uptrend  and 200 day Moving Average for the first time in 5 years. The FANG have been providing leadership to the US markets for this bull cycle and when it losses its bite the US markets "Last Man Standing " outperformance of the Global Market could be in doubt. The technical damage to the Fang has strenght sifu's view that the US market has peaked for the cycle. Fang's        " Winner Takes All" business model could be faced challenges from regulation with its highly published data breaches for Google and Facebook, another threat faced by these companies are the decentralised technology disruption provided by Block Chain

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DLC Webcast: HSI is trying to stabilize at 24500 level

Major U.S. indexes finished the week in the red, hurt by a post-earnings plunge in key tech companies Alphabet and Amazon. The S&P 500 fell into correction territory by falling 10% from its recent high. For China, CSRC says China to implement New Share Buyback Rules from 26-Oct, relaxing the conditions for listed companies to buy back shares to support share prices. Hang Seng Index gapped up nearly 200 points and then pulled back to test the bottom support at around 24,500 points level.

Watch the webcast here:

https://dlc.socgen.com/en/webcast-inside.php?id=44

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Taiwan Msci Index - The Big Boys Just Left the Market!

One of RHO most Bearish Setup!

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PHLX Semi Conductor Index - Yesterday 6.6% fall Could Confirm The Multi Year Double Top Formation .

Today's 6.6% Fall On The PHLX Semi Conductor Index (SOX) confirms a Double Top Reversal pattern and signal the start of a Bear Market for the Semi Conductors Stocks. Its time to take a Long Term bearish view. This blog base strategy is to ride a portfolio of weak tech stocks with a Stop Loss at the year high of the index

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China SunSine - Consolidation Between 0.94 to 1.01 could be over soon! Watch for the break below 0,94!

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DLC webcast: HSI is trying to find support at 25500

PBOC Governor, Yi Gang says central bank is considering a range of risks in its currency policy, including a worst-case scenario. RMB has normal volatility, to stay in reasonable range and now is at a “reasonable and equilibrium level. Hang Seng Index gapped down nearly 200 points and found the support at around 25,500 points level.

Click here to watch this week's DLC webcast. 

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Thomson Medical - warrants back in-the-money

The price action of Thomson Medical (TM) looks interesting these few days. With the existing TM Warrants expiring in April next year, the price of TM has now returned to $0.09, which is the exercise price of TM warrants.

If the price stays above $0.09-$0.095, there could be an opportunity for shareholders to arbitrage by selling their shares and convert their TM warrants into shares at $0.09 in order to receive the piggy-back warrants, which only expires in 3 years. Exercise price of the piggyback warrants is $0.12.

For the piggyback warrants to be listed, 100 shareholders have to exercise their TM warrants. From TM's point of view, investors exercising the warrants will be an important source of funds for its projects.

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Inflection Point

As the US indices tested their all time highs recently, we are seeing signs that the US market could be due for a major correction soon. Here are 3 signs that the US market is at its inflection point.

1) The US Dollar Index is poised for a breakout from its resistance at 95.7, towards the previous high of 97.

2) US 10-year treasury yield is testing the upper trend line of the channel and could be on the verge of a break out.

3) The Semi-conductor Index is forming a double top, and could break down soon.

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Best Buy Inc (BBY) - First Bearish Bar ! This stock could also have hit its long term peak and a major reversal of trend could be expected !

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DLC Webcast - China Weaker PMI numbers added more selling pressure

China Weaker PMI numbers showed 2 gauges of activity in China’s manufacturing sector worsened in September, reflecting the nation’s economic slowdown and the fallout from the trade war with the U.S. Hang Seng Index dropped back to the 10D and 20D SMA and now is trying to stabilize at around 27,300 points level.

Click here to watch the webcast: https://dlc.socgen.com/en/webcast-inside.php?id=40

All posts and charts are for educational and illustration purposes only