Daily Brief Financials: Nikkei 225, CapitaLand Ascendas REIT, S&P 500 INDEX, New World Development, Taiwan Stock Exchange Weighted Index, Bitcoin Pro and more

• Nikkei looking oversold on all daily, WEEKLY, and MONTHLY timeframes.
• KWEB records strong bullish engulfing candle on weak overall tape Monday.
• MELI versus AMZN ratio chart favoring the former. Technical complexion change.

• US-10 year treasury yield and Singapore 10-year bond yield are closely correlated
• Singapore real estate stocks’ trading performance are therefore related to expectation of a US rate cut
• We expect SG RE stocks will show stable industry fundamentals in upcoming results.  We like our trade idea to Long CLAR SP and SHORT Keppel REIT among S-REITs

• The S&P 500 INDEX is massively oversold WEEKLY (and DAILY).
• Our models indicate the index is trading in the “Tails” area of the LONG model, a reversal is probably imminent, but forecasts in this  price area are less reliable.
• Accumulation can start from Monday’s low prices (around 5100), the reversal will probably come next week.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Indika Energy
• New World Development
• Tata Steel Thailand

• The Taiwan Stock Exchange Weighted Index (TWSE INDEX) has surged this year as the Artificial Intelligence hype boom has taken over.
• Short notional has risen too, more due to higher stock prices than due to increased shorting. However, there are stocks that have seen big changes in short interest YTD.
• The largest YTD increase in shorts have been in Novatek Microelectronics, Hon Hai Precision Industry, Lite On Technology, Acer, Wistron Corp, China Steel, Zhen Ding Technology Holding and Chailease Holding.

• Financial markets are a humbling mechanism.
• The past two weeks remind us just how difficult predicting the future can be.
• Since our market cycle indicator signalled a crypto slowdown on June 2nd, we have been risk-off.