Markets Hate Uncertainty In Short Run

Summary of content for the week of  Oct 23:

1. Week 43 major indexes performance;

2. Week 43 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

U.S

The SPX ended modestly lower after three consecutive week advances. Headlines focused news flow around the fiscal relief negoniation before the election, which is just around the corner. Market behaved in a somewhat oderly fashion for the week, fluctuating in a narrow band. However, do expect to brace for a bumpier ride as we approach to and through, the election. Based on historical experience, markets hate uncertainty in the short run, but are not partisan over the long run.

Major Events in Focus:

10-year Treasury yield rose to highest level in four monts, as expectations that a potential Biden win for a larger relief package to support the economy.

Housing market continued to be strong, and also improved jobless claims with supportive Fed policies, fiscal stimulus package after the election will lead to sustained economic expansion in the coming years. All these will support a bull market in our view.

Earnings Reporting season for the week and coming weeks. Major companies such as SNAP surged on surprised profits, provide a tailwind to Twitter(TWTR). Coming week, heavyweight such as AMZN, AAPL, MSFT, GOOGL, V, MA will report their earnings, click (HERE) for details.

Among 11 SPX major sector. Communication Services(XLC) outperformed for the week, helped by gains in internet giants FB and Alpharbet(GOOGL).  Technology stocks( XLK) performed worst, dragged lower by Apple(AAPL). Refer to below sector performance table for detail dates.

China/HK

Chinese stocks retreated for the week, but still within its three-month consolidation range. China reported its GDP expanded 4.9% in 3Q, along with other data, offered further evidence that China's economy recovery  gaining momentum. By comparison, U.S and EU remains below pre-pandemic levels for their industria activity. 

Alibaba(BABA) began promotions for "Single Day"-the largest shopping event on Nov 11 each year. Last year, Alibaba's GMV(gross merchandise value) totaled RMB 268.4 billion or about 38.3 USD billion. By comparison,2019 "Black Friday" online sales in U.S totaled 7.4 USD billion. 

Ant Group IPO is said will start application on Oct 27-30, and start trading on Nov 6. Will be the world largest IPO in history. 

Singpore 

STI appears found footing above 2500 level after having been closed above it for three-week in a row. Immediate technical support to watch 2520 and resistance at 2600. Refer to below major indexes weekly performance table and weekly charts.