Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Shanghai Stock Exchange Composite Index / Technical Analysis

<p>HSI short from 30k did kiss the 28k target and sets up a long trade into the next swing lower. Shanghai composite also met the 3,450 long support as the key driver for H shares and HK with some slippage/lag. A heavier global cycle will provide headwinds for the A50 initially which has yet to hit ideal buy support at 17,500 but now looks more promising.</p><p>HSI will need more work to proof a low at pocket support on the back of a heavier global cycle in coming sessions.</p>

HSI short from 30k did kiss the 28k target and sets up a long trade into the next swing lower. Shanghai composite also met the 3,450 long support as the key driver for H shares and HK with some slippage/lag. A heavier global cycle will provide headwinds for the A50 initially which has yet to hit ideal buy support at 17,500 but now looks more promising.HSI will need more work to proof a low at pocket support on the back of a heavier global cycle in coming sessions.

Korea Stock Exchange KOSPI 200 / Technical Analysis

<div>Asia lean was on the short side (STI, HSI, KLSE, SET, Japan and India banks). Short protection called for in Taiwan and Korea for a pullback cycle. USD rally risk will add to pressure now that the USD/KRW has cleared resistance (we are long from 1,080).</div><div></div><div>Long equity and short the USD is a crowded trade and we are poised for a shakeout in the next few weeks. We like selling equities on a bounce attempt and buying the USD on dips into early February but divergences suggest this may start to see a bigger unwind.</div>

Asia lean was on the short side (STI, HSI, KLSE, SET, Japan and India banks). Short protection called for in Taiwan and Korea for a pullback cycle. USD rally risk will add to pressure now that the USD/KRW has cleared resistance (we are long from 1,080).Long equity and short the USD is a crowded trade and we are poised for a shakeout in the next few weeks. We like selling equities on a bounce attempt and buying the USD on dips into early February but divergences suggest this may start to see a bigger unwind.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

<p>The number of major country indexes showing major bullish inflections continues to grow. Broad commodities (Bloomberg Commodity index) also display a bullish reversal topside a 12.5-year downtrend. This type of evidence helps affirm our bullish outlook and suggests higher prices are ahead. Continue to add exposure on pullbacks.</p>

The number of major country indexes showing major bullish inflections continues to grow. Broad commodities (Bloomberg Commodity index) also display a bullish reversal topside a 12.5-year downtrend. This type of evidence helps affirm our bullish outlook and suggests higher prices are ahead. Continue to add exposure on pullbacks.

Long-Term Bullish Inflections For Hang Seng, DAX, MSCI EM, & Bloomberg Commodity Index

<p>As the USD moves into extreme oversold territory we are on the hunt for short hedges in Asia and present positioning on the short side into strength this week. Japan, Korea and Taiwan have been our core long group but nearing secondary resistance levels. Dip support targets outlined to trade a push high and then prepare for a mid to late January risk draw down that sets the stage a drive higher in February/March.</p>

As the USD moves into extreme oversold territory we are on the hunt for short hedges in Asia and present positioning on the short side into strength this week. Japan, Korea and Taiwan have been our core long group but nearing secondary resistance levels. Dip support targets outlined to trade a push high and then prepare for a mid to late January risk draw down that sets the stage a drive higher in February/March.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>At long last, Hang Seng Indexes (HSIL) has released the consultation paper on the "Proposal to enhance the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> as regards continuing to serve as the most representative and important benchmark of the Hong Kong stock market". Market participants have until 24 January to submit their views to the HSIL.</p><p>There are 5 main proposals in the consultation paper:</p><ol>
<li>Select constituents by industry group based on a target coverage for each industry group</li>
<li>Increase the number of constituents to between 65 to 80</li>
<li>Removal of the Minimum Listing History requirement for eligible candidates</li>
<li>Maintain a certain number of constituents classified as Hong Kong companies to sustain the level of representation of Hong Kong portion in the index</li>
<li>Lower the weighting cap of individual constituents from 10% to 8%, and increase the weighting cap of WVRs and Secondary Listings from 5% to 8%.</li>
</ol><p>The simulated one-way turnover of increasing the number of constituents to between 65-80 is estimated at 15-20% and HSIL proposes to implement the transition to the enhanced methodology within one year.</p><p>In this Insight, we look at the impact on the index from the proposed changes.</p>

At long last, Hang Seng Indexes (HSIL) has released the consultation paper on the "Proposal to enhance the Hong Kong Hang Seng Index (HSI INDEX) as regards continuing to serve as the most representative and important benchmark of the Hong Kong stock market". Market participants have until 24 January to submit their views to the HSIL.There are 5 main proposals in the consultation paper:
Select constituents by industry group based on a target coverage for each industry group
Increase the number of constituents to between 65 to 80
Removal of the Minimum Listing History requirement for eligible candidates
Maintain a certain number of constituents classified as Hong Kong companies to sustain the level of representation of Hong Kong portion in the index
Lower the weighting cap of individual constituents from 10% to 8%, and increase the weighting cap of WVRs and Secondary Listings from 5% to 8%.
The simulated one-way turnover of increasing the number of constituents to between 65-80 is estimated at 15-20% and HSIL proposes to implement the transition to the enhanced methodology within one year.In this Insight, we look at the impact on the index from the proposed changes.

HSI Market Consultation - Wide Ranging Changes Proposed

Hong Kong

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

Hang Seng Index (HSI INDEX)

HSI Short and Composite Target Met

HSI short from 30k did kiss the 28k target. Shanghai composite also met the 3,450 long support as the key driver for H shares and HK with some...

Thomas Schroeder

Asia Pullback Protection with USD Risk

Long equity and short the USD is a crowded trade and we are poised for a shakeout in the next few weeks. We like selling equities on a bounce...

Thomas Schroeder

Long-Term Bullish Inflections For Hang Seng, DAX, MSCI EM, & Bloomberg Commodity Index

The number of major country indexes showing major bullish inflections continues to grow. Broad commodities also breaking a 12.5-year downtrend....

Vermilion Research

Asia Long and Short 2021 Kick Off

As the USD moves into oversold territory we are on the hunt for short hedges in Asia and present short positions into strength this week. Core Asia...

Thomas Schroeder

HSI Market Consultation - Wide Ranging Changes Proposed

HSIL has announced the market consultation for the Hang Seng Index. The conclusions should be announced in February. If the market agrees to most...

Brian Freitas