Daily Brief Thematic (Sector/Industry): Good Morning Japan | Shifting Sentiments but Bullish Price Action and more

In today’s briefing:

Good Morning Japan | Shifting Sentiments but Bullish Price Action

Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news that will impact your trading day in Japan. FOLLOW US to keep abreast!
OVERNIGHT. Trump is back on Twitter ! Sentiment mixed on Fed Pivot -bulls still in charge – market underweight equities; Things not as bad in TECH; Thanksgiving =consumer stock volatility
JAPAN. NKY to open flat; Yen stable; PM Kishida in danger of the sack ? Not yet; Inflation approaching BOJ’s 2% tgt – still need wages to rise

The sharp rally of China’s higher education stocks on 18 Nov reflects positive sentiment from announcement of “Implementation Plan for the Project of Reaching the Standards for Running Vocational Schools”.
For China Education Group (839 HK), potential resumption of dividend will be a driver. The 48% increase in 2022/23 registered students and 10pp utilisation growth have secured FY23 outlook.
CEG’s premium valuations are justified by execution capability, asset quality and earnings outlook. FY23 consensus forecasts are just too low and upgrades will be positive catalysts.

One useful way of finding emerging trends and potential market leadership is by spotting divergences in sectors, companies, and indexes.
Alternatively, spotting negative divergences can be useful to identify when existing trends are reversing or about to reverse judged solely by the observed price action.
Divergences can often give helpful clues of new market leadership which then can be confirmed by technical charts and especially volume or accumulation signs.

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