Daily Technical Analysis: Ping An No Longer the Safe Haven – Call for New Lows in Progress and more

In this briefing:

1. Ping An No Longer the Safe Haven – Call for New Lows in Progress
2. Global Indexes Approaching Major Resistance
3. U.S. Equity Strategy: Defensive Areas Weakening; Broad Market Attempting to Bottom
4. Amorepacific Group and Corp Pair Trade

1. Ping An No Longer the Safe Haven – Call for New Lows in Progress

68.30 long entry was recommended to close at the 77-80 area with 80 acting as the macro bull/bear line in our insight Ping An Long Pair Working – Risk of New Lows . The rejection call at 80 was expected to usher in selling pressure to press on new lows.

Ping An’s safe haven status has evaporated and does exhibit future vulnerabilities in HK’s underlying cycle (late Q1 into Q2). In our last insight we outlined that Ping An shows increasing risk that its safer have position will come under pressure and so it has.

New lows are still targeted. The current bounce is knocking on formidable resistance that should be used to sell stale long positions or even take a short bet.

2. 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.

3. 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.

4. 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.