Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com.
Asia has an unexpected leading market. Since stocks in the region began their rally in 2009, South Korea's Kospi index has quietly emerged as the so-called harbinger of market trends. While there are many theories why this is the case, I believe it is more useful to recognize the Kospi's role as a leader and use it to develop better trading strategies.
In my recent discussion on the prospect of the Australian dollar reaching parity with the U.S. dollar, I indicated that I will go short on the Aussie when, and if, I receive a "parity invite". Well, the invitation has arrived. Am I sticking to my guns, or will I attend as a reluctant guest?
The U.S. dollar index is not listening to the talk coming out of the U.S. mid-term elections. The greenback has continued to trend lower, now hovering at eight-month lows, despite Washington's threat to introduce a bill to pressure Beiing to revalue the yuan, in a bid to appease voters.
The term “as safe as a bank” has pretty much become an oxymoron since 2008, when the global financial crisis began. The "Basel III" announcements, already described as old generals fighting past wars, will unlikely do much to bring confidence back to the sector.
As recently as three weeks ago we remained bullish on oil. This view has now changed with a confirmation of a longer term chart pattern, with the Nymex oil chart now showing a bearish pattern.
There are some significant differences, but also similarities, in the behavior of the blue chip Dow Jones Industrials and the broader S&P 500 indices. Historically the most significant difference is in the way the 2009 recovery trend was defined.
Last week's occurence of the second Hindenburg Omen in as many weeks has investors concerned if an Armageddon scenario is in the cards for the U.S. stock markets.
Despite doomsayers' predictions that the S&P 500 index will collapse, the charts still don't support those warnings.
The euro zone is under pressure, the Shanghai Index is falling and US rates will rise. But despite these factors, gold continues to move sideways.
Four key features of the Shanghai Composite have exacerbated its plunge, pushing it toward the consolidation area between 3000 and 3400.
There is to be a big change in the direction of China's Shanghai Composite Index, with a high probability the market will find support at 3400 points.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.