HSI - Potential Impact of WVR Share Inclusion & Finance Sector Capping

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

<p><a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" rel="noopener" data-smartkarma-citation="entities:22886:1">S&amp;P 500 (SPX INDEX)</a> found support just above the 3,050 cycle low target and after re testing 3,150 is vulnerable to weakness as trade wrinkles continue to weigh on sentiment and leading to a binary outcome Friday/Monday.</p><div>
<a href="https://www.smartkarma.com/entities/jpy" target="_blank" rel="noopener" data-smartkarma-citation="entities:22826:1">JPY (USDJPY CURNCY)</a>    USD/JPY 108.40 risk pivot is at the forefront this week as markets prepare to react to trade hurdles/breakthroughs. We do not expect tariffs to be hiked but things are likely to be pushed back given the lack of progress and unsettled hurdles (draw down risk).</div><div></div><div>We have placed downside protection in the US from the SPX 3,150 area in weaker sector and the SPX. The US cycle is trading firm with a view that a trade deal is in the cards while China price action shows a pessimistic outcome to trade negotiations and where short protection has been recommended in Hong Kong (as well as Korea and Singapore). Australia's ASX chart illustrates resistance to place short protection for a potential break below 6,580 support.</div><div></div><div>USD/KRW breakout is a focus as is a secondary attempt for the USD/BRL to challenge the critical 4.20 breakout level (direct impact on EM risk).</div>

S&amp;P 500 (SPX INDEX) found support just above the 3,050 cycle low target and after re testing 3,150 is vulnerable to weakness as trade wrinkles continue to weigh on sentiment and leading to a binary outcome Friday/Monday.
JPY (USDJPY CURNCY)    USD/JPY 108.40 risk pivot is at the forefront this week as markets prepare to react to trade hurdles/breakthroughs. We do not expect tariffs to be hiked but things are likely to be pushed back given the lack of progress and unsettled hurdles (draw down risk).We have placed downside protection in the US from the SPX 3,150 area in weaker sector and the SPX. The US cycle is trading firm with a view that a trade deal is in the cards while China price action shows a pessimistic outcome to trade negotiations and where short protection has been recommended in Hong Kong (as well as Korea and Singapore). Australia's ASX chart illustrates resistance to place short protection for a potential break below 6,580 support.USD/KRW breakout is a focus as is a secondary attempt for the USD/BRL to challenge the critical 4.20 breakout level (direct impact on EM risk).

FTSE Straits Times Index (STI) (STI INDEX)

Australian Stock Exchange All Ordinaries Index (AS30 INDEX)

Australian Stock Exchange All Ordinaries Index

Trade Goblet Half Full in the US and Half Empty in China

Hang Seng Index

Trade Goblet Half Full in the US and Half Empty in China