Hong Kong Daily Outlook for Aug 19, 2008
Posted by Book Eater
Scary thoughts fulfilled: Prepare for Gruesome Lose –em
Hang Seng Index has broken lower than its March 18 low and the only support waiting right now is just simply the August 17 lows which rests at 19,386.72. From today’s close of 20,484.37, what’s most bearish on today’s performance is that the weakness of Hangseng was broad based leaving all sectors down despite Shanghai posting a 1% gain today due to good earnings of China Merchants Bank, a big cap heavyweight in Shanghai. With these headwinds, traders should stand aside and let the heavy overhead supply get distributed before taking any long positions. Prepare to see new lows.
Recommendation: My previous recommendation to just simply detach and take a vacation holds. Just observe and watch the markets from a distant view. Avoid HK markets until a decisive amount and size of bounces form within a sustainable trading range.