Asia Pacific Ex Japan: Just a Normal Correction, but up to 40 Points in MXAPJ.

Managing Director, MTS Research

Peter Beuttell

Managing Director

MTS Research

MTS Research Limited is an independent investment research company specialising in technical analysis. 

MTS Research provides technical analysis services in the form of regular publications and consultancy advice, catering for a number of different investment approaches from absolute or relative returns to long-only and long/short.  The company has a global client base of blue-chip financial institutions ranging in size and stretching from Los Angeles to Tokyo, via New York, London, Frankfurt and Hong Kong.  

MTS was founded in 1989 at the request of Morgan Grenfell Investment Services Limited (MGIS), the ERISA arm of Morgan Grenfell Asset Management (subsequently Deutsche Asset Management), by Peter Beuttell, a Portfolio Manager at MGIS between 1987 and 1989. 

Peter is a qualified Chartered Accountant and self-taught market technician with over 30 years experience.  At MGIS, Peter managed money in European, Australasian and Far East markets for US clients, such as American Airlines and American Petrofina.  He achieved first quartile perfomance on their behalf by blending fundamental and technical analysis in his investment decision-making.  

After an initial focus on the EAFE markets (Europe, Australasia and Far East), the company has recently expanded its coverage to include the Americas, thanks to the recently-completed two-year Knowledge Transfer Partnership with the University of Plymouth.  The resulting software – the Technical Overlay Program (TOP) – allows fund managers to access an immediate Technical view on any market, sector, stock, bond yield, currency or commodity within their selected universe.

MTS Research consists of a team of five based in Penzance and London. 

Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index / Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index (MXAPJ INDEX)

MSCI AC Asia Pacific Excluding Japan Index

A complete technical picture of an index will ideally contain around 10 independent inputs, but, after Elliott Wave, the one we look at next in the list is weekly momentum. There have been 5 bear markets in the past 20 years in Asia, and at least 4 of them show the classic three momentum signs we look for in any major index before it rolls over into a downtrend.Asia currently contains only one of those three.  We have discussed them below, and what it will take for the other two to appear.

A complete technical picture of an index will ideally contain around 10 independent inputs, but, after Elliott Wave, the one we look at next in the list is weekly momentum. There have been 5 bear markets in the past 20 years in Asia, and at least 4 of them show the classic three momentum signs we look for in any major index before it rolls over into a downtrend.Asia currently contains only one of those three.  We have discussed them below, and what it will take for the other two to appear. 

Asia Pacific Ex Japan: The Message from Medium-Term Momentum