HK
Market

ZOOM
ZOOM ZOOM! Jump up your seats and BUY! BUY! BUY!

In
its most dramatic session for the year, Hong Kong stocks zoomed in
the afternoon session after falling 1400 points during the morning
session, after the Federal Reserve, the European Central Bank, the
Bank of Japan and other central banks took joint action to alleviate
tensions. The Hang Seng Index pared the losses down to 4.73 points
or 0.03% to close at 17632.46. The HSCCI advanced 87.01 points or
2.7% to close at 3314.47. H-Shares slipped 31.42 points or 0.36% to
close at 8633.73. Turnover was significantly higher at HK$102.35
Bil, higher than HK$76.354 Bil.

Technical
View:

Market staged a very very
clear cut rally. As traders, we simply buy and ask questions later.
Lo and behold, the news came out afterwards that the central banks
all over the world are coordinating action to inject funds into the
market. This is a clear government intervention to stop
capitulation. For us traders, this is a happy day and a sweet
reversal. You don’t have to be a technician to know that this
is a clear boost in sentiment and in risk appetites.

Short Recap:
Market opened 600 points down at 17,120 from previous close of 17,636
and continued its momentum to the downside sending the index to a low
of 16, 283.72 or 1,400 points down. As a trader, I looked for the
support of the 10 year moving average at 15,000 and was looking to
bottom fish tomorrow. Lo and behold, the market prevented the
capitulation and zoomed all the way up as much as 1600 points to a
high of 17,849.97 before slightly slowing down to close at 17,632.46.
So this is what a bull market feels like, even if it’s just
for a brief 2 hours! It really is a great feeling.

Preferred Action: BUY
BUY BUY! 700 HK or Tencent is my top pick.

Support: 54.00 (Tight
support found in intraday)

Resistance: 64.00

Preferred Entry: 54.05
but 58.00 is still fine

Disclosure: Author is
long Tencent