Index Weekly Wrap for the Week of Jan 24

Summary of content for the week of Jan 24:

1. Week 4 major indexes performance;
2. Week 4 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S
U.S dropped on Friday, SPX lost 0.9% - a loss not seen for while. U.S stocks taking a breather for the week following strong performance since beginning of the year. Global market underperformed on fears of the coronavirus outlook in China and spreading to other countries. 

What stocks will be affected? Global tourism expected to drop, oil demand will be lesser. Energy shjares lagged. Resorts and Casino related stocks such as Wynn Resorts(WYNN) and Las Vegas Sands(LVS) particularly weak given the decline in visitors to their casinos in Macau. On the other hand, Utilities shares outperformed. 

China/HK
Following the sudden outbreak of a new coronovirus in Wuhan this shortened CNY holiday week, Shanghai stocks(SSE) dropped 3.2% sharply below the important psychological 3000 mark and HSI dropped 3.8%, break below 28000 level as well. However, it is believed the short term panic selling will not last long based on the example provided from previous SARS outbreak in 2003. The biggest economic casualties are likely to be retail sales( online sales could benefit), restaurants, and airlines and travel. 

The three Asian indexes under my watchlist: SSE, HSI and STI all retreated from their major downtrend line as shown in the weekly charts below. Technical traders would have be alerted on the pullback or even go short already.

Singapore
STI retreated from its major downtrend line as shown in the weekly chart below. Immediate technical level to watch is 3222.83 Year-End-Close(YEC).

Index Weekly Wrap for the Week of Jan 17

Summary of content for the week of Jan 17:

1. Week 3 major indexes performance;
2. Week 3 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S
U.S stock extended its rally for the week, 2nd week straight up. As the U.S-China signed their phase one deal agreement, encouraging earning from U.S banks and better economic data pushed U.S stocks to fresh new high. The round of rally has extended upside a lot, but it won't be going up forever, for sure. Technically, the weekly candlestick is still bullish, but I think a short-term pullback is a reasonable expectation. 

Among 11 SPX major sectors, Utility(XLU) outperformed and Energy(XLE) lagged. Technology(XLK) and Communication Service(XLC) continued to be strong among other sectors. 

China/HK
China SSE index hit high early this week but eased ahead of signing of phase one deal agreement with U.S and did not rebound after the announcement. Technically, The SSE index hit its major downtrend resistance level at around 3120(see below weekly chart) and closed first week down after six-week up in a row, I think the downside is limited by strong support at 3000-3030 area. 

HSI appears to be much stronger, it has already breakout to upside from its major downtrend line( refer to below weekly chart).There are plenty of room to upside.

Singapore
STI has another week gain to close very close to its previous high of 3285.72 in Nov 7 last year, it also hit a technical downtrend resistance line right above. Weekly candlestick looks bullish, do expected sideway consolidation ahead of CNY or short term pullback. 

Index Weekly Wrap for the Week of Jan 10

Summary of content for the week of Jan 10:

1. Week 2 major indexes performance;
2. Week 2 US sector indexes performance;
3. Major indexes weekly charts of support and resistance levels;

U.S
U.S stocks down on Friday, DJI slipped 133pts or 0.46% after U.S announced fresh sanctions on Iran and somewhat disappointed nonfarm payrolls report for Dec. However, the three major indexes all closed to fresh new high for the week, equities around the world rebounded and getting higher after Middle East tensions recede. Technology dominant Nasdaq index especially strong with 1.75% weekly gain. The mighty U.S stocks seem getting stronger and stronger, we know this strong market will not last forever, but it's very strong as for now.

Among the SPX 11 major sectors, the Communication Services(XLC) and Technology(XLK) are top perform sectors, led by Apple following a report of strong than expected iPhone sales in China. Google parent company Alphabet(GOOGL), Facebook(FB), Apple(AAPL) are leading stocks. Besides, China's Alibaba(BABA) has been strong as well since its launch of secondary listing in HK BABA-SW(9988.HK). 

China/HK
Shanghai Index rose for the sixth straight week. Stocks has been bullish ahead of Lunar New Year holiday. Historically the mainland stocks will rise during the 30-day CNY holiday window. The HSI index rose for 6th week in a row as well, breaking up its downtrend line as seen in below weekly chart. HSI index which lagged behind other peers last year is expected to catch up this year. Technically bullish and poised for more upside.

Singapore
STI rose for 3rd week straight up, slow and steady as it approaching its major downtrend line. Immediate resistance at around 3270 level. 

Index Weekly Wrap for the Week of Jan 3

Summary of content for the week of Jan 3:

1. Summary of major indexes performance for 2019
2. 2020 Week 1 major indexes performance;
3. Week 1 US sector indexes performance;
4. Major indexes weekly charts of support and resistance levels;

Hello New Year 2020!

U.S

For the year 2019, U.S stock outperformed its Asia peers in terms of return. The top performer was technology dominant Nasdaq index which gained 35.2%, S&P 500 and Dow recorded 28.9% and 22.3% respectively. All three closed at record highs. In Asia(only consider below focused indexes), the top performer was Shanghai Composite Index(SSE) gained 22.3%, following by Nikkei 225 index with 18.2%. Refer to below table for other focused indexes.

As for U.S S&P 500 sectors(Refer to below second table), Technology(XLK) was the top performer with stunning 47.9% return, Energy(XLE) sector was the least performer with 4.69% gain.

For last week, U.S stocks declined modestly( refer to weekly performance table), taking a breather after sharp rally at year-end. Concerning over rising tensions between the U.S and Iran emerged after U.S missile killed a prominent Iranian general. Geopolitical risk in the Middle East sent crude oil prices 3% higher immediately. Equity indexes futures reacted and selloff sharply lower following the news.

Main events in 2020 market theme will be geopolitical risks including Middle East and economical fundamentals; Brexit; trade tentions on tariffs, and U.S election uncertainty.

China/HK
U.S and China will sign phase one deal agreement on Jan 15. News reported China will take monetary stimulus also boosted markets sentiment.  SSE index closed up five weeks in a row. HSI index also closed fifth week up but was selloff on Friday following news of U.S airstriked and killed a Iranian general. Technically, HSI hit major downtrend resistance line and was down by profit-taking as well. Refer to below weekly chart.

Singapore
STI crept up 2nd week in a row, approaching its technical downtrend resistance level at around 3275.