Markets Update: 21st Sept 21
ATEC will admit that we were taken aback with Monday’s price action in Hong Kong spilling over to other asset classes/markets, on the back of the Evergrande narrative.
It remains to be seen if this indeed escalates into a systemic contagion, but for now, markets are already voting with their feet anyway.
The technical message which the APEX50 (and HSI) offered us (posted 13th Sept 21) a week was perhaps the salient warning signal to heed.
What we did not expect was when this also resulted in failed breakouts in two of the commodity markets (being crude and copper) which we had been tracking, and they are now back in their corrective zones.
We humbly respect our risk levels and await further price developments to avoid trading in a vacuum and to re-assess. We will also be watching if the imminent pullback in Nikkei is able to find support above its previous breakout zone. This will enable us to assess if the rally which had started early in the month is done or yet done.
Good luck out there.