Market Observations — Getting Close

Ok, so we had very ‘bad news’ out of China yesterday, in the form of a weak 3Q21 GDP print of 4.9% year over year rise.

ATEC takes it as an encouraging sign that this did nothing to damage the tentatively bullish setup in the region.

Source: Bloomberg

In fact, the poster child for the region, APEX50, is now in a position to challenge its entire downtrend since its February peak.

Source: Bloomberg

We see potential leadership coming from Hong Kong, as represented by the HSCEI index above, which similar to APEX50, is also on the verge of breaking above its important 50 Day MA (as mentioned before).

Source: Bloomberg

… but also potentially from the regional Semiconductor index as represented by the Bloomberg Asia Pacific Semiconductor Index (BPRSEMI Index) as shown.

Again, here is a sector where stocks are no longer falling on ‘bad news’. Granted, it has not yet overcome its downtrend channel and we have yet to see evidence of a trend change. But, from a starting position of being rather over-sold and shunned, it does stand a fair chance.

ATEC thinks time is best spent preparing before the move. Good luck out there.

Investing research and thoughts from an Upside user and Portfolio Manager named ATEC, based in Singapore. learn more at https://upsidetechnology.co/