|International Equity Index Daily Hotline
25 November 2013 By Cornelia Dichio, Analyst
The Dow Jones Industrial Average is one of the leading US stock markets, as it continues the advance into new high ground. This follows a shallow and short-lived pause near the round 16000 figure. However, it must be pointed out that the RSI momentum indicator remains at an elevated level, and the rally from support at the 200-day moving average does indeed appear overdone, increasing the danger of a correction before long. Still, there is no sign of this on the horizon just yet, with valuations continuing to climb, at present, in the futures contract in the out of hours session.
The Canadian TSX Composite index is quietly firm, as it continues to toy with the 13500 level. Current action could be part of a consolidation phase before the advance is renewed, towards the 2011 highs near 13900-14330. We watch events with a view to buying a sustained break over 13500 (see also hotline for 15 November, Chart of the Day section).
Recording a 2% gain for Friday's trading, Argentina's General index has continued to lift off support from the shorter-term moving average near 280000. We are still long the market in the hope of a resumption of the advance to fresh highs. The stop is raised to 267000.
Most of the main European bourses featured on the Focus List lifted on Friday. The Swiss SMI did so too, initially, before finding intraday resistance at 8246.56. Nonetheless, a fall beneath the early-November low at 8125.92; near the 50-day MA, is required to check the advance upon the May peak at 8411.3.
The Latvian OMX Riga index shed 2.1% before the weekend. This chart pattern is looking top heavy. What is more, a break under the 200-day MA, currently located near 435, could confirm the 'bull trap' or failed break over the 2011 ceiling. We will consider selling should that occur (a breach of the MA).
|ASE||Greece Athens SE Index||1168.9||+2.4%|
|IBG||Argentina General Index||288252||+2.0%|
|SENSEX||India BSE Sensex Index||20605.1||+1.9%|
|NKY||Japan Nikkei 225 Index||15619.1||+1.5%|
|XU100||Turkey ISE National 100 Index||75638.1||+1.3%|
|VIX||CBOE Volatility Index||12.26||-3.2%|
|RIGSE||Latvia OMX Riga Index||442.75||-2.1%|
|PCOMP||Philippines Manila Comp Index||6004.26||-1.3%|
|BDIY||Baltic Dry Index||1483||-1.1%|
|SKSM||Slovakia SAX Index||194.34||-1.0%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Stop||Comment|
|11 Oct 2013||China Shanghai B Index||SHBSHR||Long||258.334||249.232||-3.52%||235|
|21 Oct 2013||Russian Traded Index||CRTX||Long||2122.42||2032.97||-4.21%||1950|
|5 Nov 2013||Argentina General Index||IBG||Long||296319||288252||-2.72%||267000|
|14 Nov 2013||S&P Midcap 400 Index||MID||Long||1305||1308.81||+0.29%||1250|
- The stop is upped on Argentina's long.
- We watch to buy the Canadian index; and sell the Latvian market.
|SPGLOB||S&P Global 1200 Index||Holds the uptrend.||1809.75||+0.5%||1694.1/1779.14||1832.42|
|INDU||DJ Industrials||New all-time levels. RSI high.||16064.8||+0.3%||15522.2/15864.4||/|
|SPX||S&P 500 Index||New all-time high.||1804.76||+0.5%||1746.2/1777.23||/|
|CCMP||NASDAQ Comp.||Retests the 'Peak' KDR of 18 Nov. Reasserts the uptrend.||3991.65||+0.6%||3650.03/3855.07||4289.06/3994.97|
|NDX||NASDAQ 100||Retests the 'Peak' KDR of 18 Nov. Reasserts the uptrend.||3422.02||+0.6%||3117.69/3318.39||3514.96/3429.2|
|UKX||FTSE 100||Pullback from overbought. Potentially developing support at the 50-day MA.||6674.3||-0.1%||6185.21/6316.91||6875.62/6819.86|
|SX5E||Euro Stoxx 50||Holds the uptrend.||3055.98||+0.4%||2877.87/2999.25?||3456.81/3106.64|
|CAC||France CAC40 Index||Maintains uptrend support near the 50-day MA.||4278.53||+0.6%||4105.67/4211.82||4558.56/4356.28|
|DAX||Germany DAX Index||Overbought rally slows near the latest all-time high.||9219.04||+0.2%||8489.62/8962.42||/|
|SPMIB||Italy S&P MIB Index||Hovers near uptrend support at the 50-day MA.||18822.3||-0.1%||17199.8/18491.8||19922.3/19501.2|
|CRTX||Russian Traded Index||'Bear trap' recovery struggles.||2032.97||+0.6%||1798.67/1976.69||2205.26/2141.84|
|IBEX||Spain IBEX 35 Index||Develops support at the 50-day MA.||9677.4||+0.8%||9173.4/9467||10221.5/10063.9|
|OMX||Sweden OMX Index||Holds the m-t uptrend to the 2007 high.||1297.87||+0.6%||1234.04/1269.75||1321.56|
|SMI||Switzerland SMI Index||Advance slows near the May peak.||8250.43||-0.2%||7747.42/8125.92||8411.3|
|AS51||Australia ASX200 Index||Holds uptrend support at the 50-day MA.||5352.83||+0.3%||5115.1/5284.9?||6000/5457.3|
|SHASHR||China Shanghai A Index||Breaks initial resistance near the 50 and 200-day MAs (2267.47). Rallies back to the Sept/Oct highs||2288.46||-0.5%||2123.68/2176.24||2376.6/2347.8|
|HSI||HK Hang Seng Index||Advance to the early-2013 peak slows.||23684.5||-0.0%||21465.7/22463.4||23944.7|
|SENSEX||India BSE Sensex Index||Advance flattens beneath the early-Nov (all-time) high. Holds support near the 50-day MA.||20605.1||+1.9%||19264.7/20161.6||21293.9/20934.4|
|NKY||Japan Nikkei 225 Index||Renews the rally towards the May peak. RSI overbought.||15619.1||+1.5%||14026.2/15020.3||15942.6|
|IBOV||Brazil Bovespa Index||'Bear trap' recovery has paused. Potential top.||52800.7||+0.2%||49530.3/51290.3||57098.6/54317.2|
|SPTSX||Canada TSX Composite||Reasserts the advance towards the the late-May 2011 high.||13478.3||+0.0%||12678/13285.2||13901.6|
|VIX||CBOE Volatility Index||Eases back to the l-t floor near 12.||12.26||-3.2%||11.05/11.83||21.34/14.36|
Copyright 2013 by Stockcube Research Ltd.