In today’s briefing:
- China/HSI Uptick Short Levels
- Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections
China/HSI Uptick Short Levels
- Bear impulse in China/HK sets up a sell on a squeeze. Sell volumes ignited on the A50 12,400 support break. HSI has been our top short in Asia and rewarded.
- We did trim our HSI short at the 15k target but still represents 10% of our book. RSI is oversold with short squeeze risk (then re cycle short).
- Hong Kong likes to bottom on big impulsive downside moves so will be interesting how our price and timing models converge.
Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections
- The bear market rally we have been discussing since our Sept. 27 Compass report has begun.
- Over half of the Sectors and all the major indexes (S&P 500, Nasdaq 100, DJIA, and S&P 600 Small Caps) display bullish 2+ month inflections.
- As referenced last week, we expect the aforementioned indexes to rally to their 200-day MAs; longer-term, this is still a bear market until they can break above their 200-day MAs.
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