In this briefing:
- China Mobile and SK Telecom Defensive Plays and Top Trade Set Ups
- Global Equity Strategy: Cautious Outlook Intact; Defensive Sectors Remain Leadership
1. China Mobile and SK Telecom Defensive Plays and Top Trade Set Ups
We are playing any surprise bounce via Shanghai A 50 futures and the HSCE.
RIO tactical bounce trade presented.
Duration defensive long set ups outlined with stops and rally targets in China Mobile and SK Telecom.
KLSE bear triangle second trade in the making for a press toward 1,620/15.
In Europe, Italy is lagging the break down and a prime short candidate for a break below triple lows/out of flat congestion.
S&P tactical break points outlined with a bounce set up in the DJI. Base case view is to short a bounce.
Higher conviction pivot levels for a USD/JPY short are laid out with action turn levels and risk points.
2. Global Equity Strategy: Cautious Outlook Intact; Defensive Sectors Remain Leadership
Global equities (MSCI ACWI) are testing 52-week lows as prices have been consolidating over the last 1-2 months. Our outlook for global equities remains extremely cautious and we expect downward consolidation to continue. Equity prices will need to show signs of bottoming in order for this outlook to change. In our December International Strategy, we explore various themes which lead to our cautious outlook, provide a technical appraisal of major world markets, explore a possible bottom in the Chinese market, and highlight attractive setups in the Consumer Staples, Communications, Health Care, and Utilities Sectors.
