Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Thematic (Sector/Industry)

<ul>
<li>In this first Taiwan Tech weekly roundup, we examine: Key stock performers both before and after Nancy Pelosi’s visit.</li>
<li>The relationship between analyst coverage and market cap for Taiwan tech stocks - At what size does analyst coverage expand dramatically?</li>
<li>A screen for significantly-sized Taiwan stocks that have zero analyst coverage - Are these dead stocks or diamonds in the rough?</li>
</ul>


In this first Taiwan Tech weekly roundup, we examine: Key stock performers both before and after Nancy Pelosi’s visit.
The relationship between analyst coverage and market cap for Taiwan tech stocks - At what size does analyst coverage expand dramatically?
A screen for significantly-sized Taiwan stocks that have zero analyst coverage - Are these dead stocks or diamonds in the rough?


Our First Taiwan Tech Weekly - “Pelosi Ex Post”

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

Taiwan Stock Exchange Weighted Index / Technical Analysis

<ul>
<li>Japan and Taiwan have been top bull bets in Asia and still a space we like adding. Dips to date have been shallow and must be factored into entry levels.</li>
<li>Japan and Taiwan have both shown impulsive rally structures as has India's Nifty (a bit tired amid overbought readings).</li>
<li>An SPX bull turn will be used as a long trigger for the Nikkei and Taiwan (Asia). Late June cycle peak approaching.</li>
</ul>


Japan and Taiwan have been top bull bets in Asia and still a space we like adding. Dips to date have been shallow and must be factored into entry levels.
Japan and Taiwan have both shown impulsive rally structures as has India's Nifty (a bit tired amid overbought readings).
An SPX bull turn will be used as a long trigger for the Nikkei and Taiwan (Asia). Late June cycle peak approaching.


<ul>
<li>Taiwan has been a top long but losing bull energy. RSI second support break warns of a price break below pivotal trendline turning our stance from exhaustive to bearish.</li>
<li>Taiwan has been a good hiding place but appears over owned amid waning upside momentum and high conviction RSI bear divergence.</li>
<li>Bearish rising wedge amid divergence are the key chart components to focus on.</li>
</ul>


Taiwan has been a top long but losing bull energy. RSI second support break warns of a price break below pivotal trendline turning our stance from exhaustive to bearish.
Taiwan has been a good hiding place but appears over owned amid waning upside momentum and high conviction RSI bear divergence.
Bearish rising wedge amid divergence are the key chart components to focus on.


Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

AngloGold Ashanti Spon Adr / Technical Analysis

<ul>
<li>We continue to see more global indexes/Sectors breaking out to new highs, with the latest being the MSCI Emerging Markets index (local currency), breaking out from a 2-year base--add exposure.</li>
<li>In terms of MSCI EM specifically, this is a huge risk-on signal for global equities, as EM is pretty much as risky as it gets across the global landscape.</li>
<li>Our bullish outlook (since early November 2023) remains intact; continue to ride this trend higher, and treat pullbacks as buying opportunities.</li>
</ul>


We continue to see more global indexes/Sectors breaking out to new highs, with the latest being the MSCI Emerging Markets index (local currency), breaking out from a 2-year base--add exposure.
In terms of MSCI EM specifically, this is a huge risk-on signal for global equities, as EM is pretty much as risky as it gets across the global landscape.
Our bullish outlook (since early November 2023) remains intact; continue to ride this trend higher, and treat pullbacks as buying opportunities.


MSCI Emerging Markets Finally Join the Rally; China/HK Improve; Upgrading Taiwan, Downgrading Brazil

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.</li>
<li>We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.</li>
<li>The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.</li>
</ul>


The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.
We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.
The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.


China: Sliding Market Leads to Passive Selling

Taiwan

The TWSE, or TAIEX, Index is capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange. The index has a base value of 100 based on its 1966 level. The index is also known as the TSEC Index.

Taiwan Stock Exchange Weighted Index (TWSE INDEX)

Taiwan Stock Exchange Weighted Index (TWSE INDEX)

Our First Taiwan Tech Weekly - “Pelosi Ex Post”

In our first Taiwan weekly roundup, we examine key stock performers before and after Nancy Pelosi’s visit and identify the market cap at which...

Vincent Fernando, CFA

Japan and Taiwan Add Levels

Japan and Taiwan have been top bull bets in Asia and still a space we like adding. Dips to date have been shallow and must be factored into entry...

Thomas Schroeder

Taiwan Crack/Red Flag

Taiwan has been a top long but losing bull energy. RSI second support break warns of a price break below pivotal trendline turning our stance from...

Thomas Schroeder

MSCI Emerging Markets Finally Join the Rally; China/HK Improve; Upgrading Taiwan, Downgrading Brazil

MSCI EM Finally Joins the Rally; China/Hong Kong Continue to Improve; Downgrading Brazil to Market Weight; Upgrading Taiwan to Overweight;...

Vermilion Research

China: Sliding Market Leads to Passive Selling

A rapidly falling market could be upwards of 74 China stocks being deleted from passive portfolios. These stocks have underperformed the headline...

Brian Freitas