|International Equity Index Daily Hotline
19 March 2015 By Cornelia Dichio, Analyst
On Wednesday, the FED delayed raising interest rates. This was unexpected and sent stock markets higher.
In the case of the Russell 2000, the market extended its advance to record levels. We continue to hold a long position in the index and raise the stop to 1165. This stop is kept just under the 200-day moving average for now, though we are looking to jam this up to around 1200 before long.
The stop on the long held in the NASDAQ 100 is also upped, to 4065, and is similarly kept under the longer-term MA for now.
In spite of the overbought RSI, China's Shanghai A index edged higher today. The profitable stop on the long is tightened once again, to 3715.
The rally for South Korea's KOSPI index is becoming overbought. The stop on the long is raised here too, to just under today's low, at 2030.
Australia's ASX 200 index has retraced the correction from overbought and retests the early-March high at 5996.9. We watch events with a view to purchasing a break over this, and the February-May 2008 ceiling at 6022, as the next important chart resistance is the 2007 pinnacle near 6850.
Sweden's OMX index has extended its rally from the 'Trough' Key Day Reversal low of 11 March at 1634.81 to break above the early-March high at 1701.07. This action has triggered the opening of a long trade (see hotline for 17 March), as the market rallies into new high ground. The stop is placed at 1550 for now.
In the UK, the FTSE 250 has retraced its pullback from overbought after finding support just above the 50-day MA. The previous high at 17357.3 yielded during yesterday's session, sending the market into unchartered territory.
NB The benchmark FTSE 100 nudged over 6980 shortly after the open today, hitting fresh highs. The market has since slipped back to trade beneath 6950 a short while ago. Nonetheless, a breach of the 200-day MA would be needed to cause significant pattern damage.
|HUI||NYSE Arca Gold Bugs Index||166.122||+5.1%|
|XAU||PHLX Gold & Silver Index||67.5761||+4.9%|
|RTSI$||Russian Trading System Index $||865.13||+4.2%|
|VIX||CBOE Volatility Index (VIX)||13.97||-10.8%|
|ASE||Greece Athens SE Index||737.96||-4.1%|
|DFMGI||Dubai Financial Market General Index||3408.18||-3.6%|
|CHF||Swiss Franc per 1 US Dollar||0.9784||-2.8%|
|ZAR||South African Rand per 1 US Dollar||12.0626||-2.4%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Target||Stop|
|2 Mar 2015||Dow Jones Ind Avg||INDU||Long||18288.6||18076.2||-1.16%||17600|
|12 Mar 2015||Russell 2000 Index||RTY||Long||1236.64||1252.14||+1.25%||1165|
|12 Mar 2015||Mexico IPC Index||MEXBOL||Long||44055.9||44360.9||+0.69%||40500|
|16 Mar 2015||China Shanghai A Index||SHASHR||Long||3614.52||3754.32||+3.87%||3715|
|16 Mar 2015||NASDAQ 100||NDX||Long||4370.47||4422.5||+1.19%||4065|
|17 Mar 2015||South Korean KOSPI Index||KOSPI||Long||2029.91||2037.89||+0.39%||2030|
|18 Mar 2015||Sweden OMX Index||OMX||Long||1701.07||1703.96||+0.17%||1550|
- A long is opened in OMX.
- Stops are tightened on the following: Shanghai A, KOSPI, NASDAQ 100 and Russell 2000 (Chart of the Day).
- We watch to buy the Australian index.
|SPGLOB||S&P Global 1200 Index||Finds support at the 200-day MA. Points back to the Feb, and all-time, high.||1957.81||+1.9%||1835.3/1892.74||1970|
|INDU||DJ Industrials||Rebounds from the 'Trough' KDR of 12 Mar again back towards the all-time high.||18076.2||+1.3%||17037.8/17620.5||18288.6|
|SPX||S&P 500 Index||Rallies back to the all-time high.||2099.42||+1.2%||1972.56/2039.69||2119.59|
|CCMP||NASDAQ Comp.||Retests the overbought early-Mar high near 5000.||4982.83||+0.9%||4547.31/4842.8||5132.52/5008.57|
|NDX||NASDAQ 100||Retraces the pullback from overbought after finding support near former resistance around 4300.||4422.5||+1.1%||4078.85/4289.3||4816.35/4483.97|
|UKX||FTSE 100||Retests the recent all-time high after finding support near the 200-day MA.||6945.2||+1.6%||6298.15/6693.8||6974.26|
|SX5E||Euro Stoxx 50||Pauses the overbought advance.||3668.52||-0.1%||3321.59/3533.4||3905.5|
|CAC||France CAC40 Index||Overbought rally shows a loss of momentum.||5033.42||+0.1%||4571.05/4856.14||5142.1|
|DAX||Germany DAX Index||Pauses the overbought rally after a new all-time high.||11922.8||-0.5%||10552.8/11193.3||12219.1|
|SPMIB||Italy S&P MIB Index||Overbought rally towards the 2011 peak slows.||22565.2||-0.7%||17555.8/20231.3||23273.8|
|CRTX||Russian Traded Index||Drops back into the s-t range/base.||1174.13||+2.6%||810.98/1002.08||1526.26/1312.7|
|IBEX||Spain IBEX 35 Index||Overbought advance pauses by the June-Sept 2014 ceiling (11249.4).||11050||+0.2%||9610.1/10136.4||11566.1/11249.4|
|OMX||Sweden OMX Index||Rallies from the 'Trough' KDR of 11 Mar to a new all-time high.||1703.96||+1.7%||1572.72/1634.81||/|
|SMI||Switzerland SMI Index||Holds the overbought rally by the Jan high.||9256.24||+0.6%||7852.83/8925.96||9548.09/9292.44|
|AS51||Australia ASX200 Index||Correction from overbought reverses near the 12 Feb reaction low. Retests the early-Mar high (5996.9).||5950.81||+1.9%||5267.4/5739.8||6385.7/6022|
|SHASHR||China Shanghai A Index||Extends the overbought rally from the 50-day MA.||3754.32||+0.1%||3074.57/3194.35||3972.95|
|HSI||HK Hang Seng Index||Counter move from oversold and the mid-Jan low.||24468.9||+1.4%||23590||25363/25102|
|SENSEX||India BSE Sensex Index||Failed break to a new all-time high. Extends the 'bull trap' reaction towards sideways trading near 28000.||28622.1||-0.4%||26469.4/28044.5||30024.7/29183.8|
|NKY||Japan Nikkei 225 Index||Holds the overbought rally.||19476.6||-0.3%||16592.6/18577.1||20833.2|
|IBOV||Brazil Bovespa Index||Reverses back up to resistance near the 200-day MA.||51526.2||+2.5%||45852.8/47841||57359.3/52457.1|
|SPTSX||Canada TSX Composite||Reverses the correction from the overbought Feb ceiling.||14962.2||+0.4%||14392.6/14606.2||15685.1/15349|
|VIX||CBOE Volatility Index (VIX)||Reasserts the s-t decline.||13.97||-10.8%||10.28/11.24/12.86||25.2/17.19|
Copyright 2015 by Stockcube Research Ltd.