In this briefing:
- Global Indexes Approaching Major Resistance
- U.S. Equity Strategy: Defensive Areas Weakening; Broad Market Attempting to Bottom
- Amorepacific Group and Corp Pair Trade
- Tsuruha Holdings/Toyota Motor Pair on a Stronger JPY
- DBS Sell Barrier Within Decline Call
1. Global Indexes Approaching Major Resistance
Broad global indexes are bumping up against logical downtrend resistance. As a result, our outlook remains cautious and our baseline expectation for continued downward pressure on global equities remains intact. At the same time, we are seeing signs that the worst of the declines may be behind us as global cyclical Sectors show RS improvements while defensive Sectors display early signs of RS deterioration. In this report we review important technical levels for developed and EM indexes, and highlight a number of attractive opportunities across markets and sectors.
2. U.S. Equity Strategy: Defensive Areas Weakening; Broad Market Attempting to Bottom
In this report we detail our U.S. investment thesis and provide a detailed technical appraisal of the broad market, as well as highlighting attractive investment opportunities within each of our 12 Sectors.
3. Amorepacific Group and Corp Pair Trade
This insight delves into make or break levels for a pair trade in being long Amorepacific Group (002790 KS) (APG) over Amorepacific Corp (090430 KS) (APC) with key hurdles/targets and floor support.
Curtis Lehnert puts forth the fundamental argument in TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity and we thought pivotal chart points would help round out this trade idea.
Holding floor support is vital for this trade to work. In absolute terms both APG and APC display similarly weak chart structures with risk of a final bout of weakness. APG displays a more depressed chart reading however.
4. Tsuruha Holdings/Toyota Motor Pair on a Stronger JPY
Running thorough ideas presented by Campbell Gunn in his stronger yen insight Japan: What to Buy & Sell if the ¥ Rises to 90 , we found a compelling pair trade set up in the form of long Tsuruha Holdings (3391 JP) and short Toyota Motor (7203 JP) as the relative chart is moving into an exhaustive low that sets up a good reaction rise to the tune of 20%.
In absolute terms we see Toyota Motor moving into a top while Tsuruha shows risk of a final low to work into this pair position but has a very compelling bullish chart set up as Toyota fade from resistance.
5. DBS Sell Barrier Within Decline Call
This is a follow up with fresh levels from our insight DBS Top and Decline Call to See More Fallout in 2019 .
Descending price wedge has and will dominate tactical swing cycles on the way down with fresh evidence of a bearish flat maturing and a tactical negative to test the lower end of the descending range. DBS is knocking on fresh sell resistance currently.
Relative stance also shows continued deterioration versus the STI barring an upside break of pattern resistance. Expected bottoming cycle due in May 2019 followed by a perform into year-end.
Indicator bear divergences are being unwound but we are starting to see basing bull divergence form in the daily MACD cycle.
Get Straight to the Source on Smartkarma
Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.
