Recent Articles in Asian Markets

We reversed our short-term tactical sells for the S&P 500 and Dow Transports as those indices have broken above their respective resistance zones.  Both the Russell 2000 and Mid-Cap (MD) are on the cusp of doing the same.  The long-term trends remain intact, and we are looking for further upside in the weeks to come.

For the U.S. markets, we wanted to focus on the weekly sell signals that were generated a few weeks ago, and therefor avoided trying to catch the short-term turns. Both the S&P 500 and Dow Transports have rallied back to their ellipse resistance zones, so we need to see how they trade into this area.  Both the DAX and Italy's FTSE MIB have both cleared their ellipse sell zones with good momentum. We are back on the bullish call for these markets. The Nikkei remains resilient and on target for the 23000 zone.

Although we had some recent short-term buy and sell signals in the S&P 500, we have yet to see any buy signals based on the important intermediate-term time frame. The sell signals we have been talking about in recent weeks remain in effect. The Dow Utilities and Nikkei remain favorable, while China's Shanghai Composite is close to generate a sell.

We are on alert for any buy signal in the days and weeks to come.

The sell signals we highlighted on September 24 remain in effect for a number of the U.S. and European markets. At a minimum, we have been expecting a 5% - 6% decline at which point, we need to see these markets hold key support levels. We would be very concerned of the August lows are breached in a decisive manner which would likely negate the long-term targets.

Lots of changes this week as we had weekly ellipse sell signals triggered on the close of last week. The sell signals were triggered for the S&P500, Nasdaq Composite, Russell 2000, Mid-Cap (MDY) and the Dow Transports. The long-term trends remain intact, but we do see about -5% downside. We would like to see how the indices hold their long-term uptrends in the coming days/weeks.

In Europe, the DAX, CAC and Italy's FTSE MIB appear to be failing at resistance. We went long the DAX and CAC last December and will capture about +20% in each index. We are short the Hang Seng and see a minimum of -5% from here.

The weekly buy signals generated last month for a number of U.S. indices remain in effect. The Russell 2000, Mid-Cap (MDY) and Dow Transports have had a strong rally, and into resistance areas that are likely to result in a pause/pullback. Long-term trends remain favorable.

We remain bullish on most of the U.S. indices with the exception of the Utilities which we believe is topping.

The buy triggered in recent weeks remains in effect for the S&P 500, Nasdaq Composite, Russell 2000, Mid-Cap MDY and the Dow Transports.

We had a number of buy triggers last week in not only U.S. indices, but also for Spain, Italy, Nikkei and the Hang Seng.

The recent volatility and market weakness triggered a number of ellipse buys in the U.S. indices while most of the European indices have pulled back to support areas which keep them positive. The trade war headlines has brought the Shanghai Composite below its long-term average and uptrend off the January low. This puts the index in a weak position and cancels our bullish call.

Not much has changed in our view. We remain constructive on all the developed markets and cautious on the Kospi 100. Both the Russell 2000 and Mid-Cap MDY have pulled back to a support area where we would be adding exposure.

We remain bullish on many of the equity markets we cover on a weekly basis. The S&P 500 has cleared the 3000 mark and we believe our long-term target of 3180 off the 2009 low will be achieved in the months to come.  Stay long!

We remain bullish on almost all markets we cover on a weekly basis. Upside momentum has increased for these markets and we highlight our near and long-term targets.

In the attached PDF we highlight 40 long ideas in the Topix index that have very favorable multi-factor model scores. Each chart is shown on a weekly timeframe back to 2014, and relative to the Topix index.

We remain bullish on most markets reviewed. Both the S&P 500 and Nasdaq Composite have pulled back to ellipse support to trigger a buy on a daily basis.