The bull market continues. Weekly market observation 22Oct2021

SG(risk-on) HK(risk-on) CN(risk-off)

The bull market continues. Weekly market observation 22Oct2021
Photo by 2 Bull Photography / Unsplash

This has been a bullish week for stock markets.

S&P500 daily chart. Hits all-time high on 22Oct2021

S&P500 says it all. S&P500 hits an all-time high on 22Oct2021 and closed near the high. U.S, the stock market leader in the world, is in a bullish mood.

Hang Seng Index daily chart. 

Hang Seng Index(HSI) rose 3.14% this week and closed near the high for the week. The percentage weekly rise is the highest since the mini-rally started in 5Oct2021. At this moment, HSI is still below the 200-day moving average. It is recovering but not considered strong.

Broad market statistics for HK and China stock markets

The broad market statistics for the Hong Kong market is not good enough at this moment to get more heavy into individual stocks, although I did buy a few this week. The percentage of stocks above the 50-day moving average is 43.17%. Although this is an improvement from last week (36.52%), I will prefer to see it above 50%.
China broad market statistics continue to look worrying. The number of China stocks near 52-week high vs 52-week low is 33 vs 125. The number of 52-week lows has worsened to 125 (last week was 75) this week. When the China giant is weak, it is hard to be confident that the smaller HK market can stay strong.

Straits Times Index weekly chart
Broad market statistics for Singapore market

Straits Times Index rose 0.98% this week and closed at 0.9% from year 2021 high. Unfortunately, this positive action was made in lower volume. When an index is near a significant previous high, I prefer to see it moving up in higher volume so that it has the strength to break through the resistance. Next week will be a good test on the strength of the rally, as it seems like a pullback is coming.

I have added more stocks to my Singapore portfolio this week.

Some stocks in my portfolio that seem promising so far are Netlink Trust(SGX:CJLU), Silverlake Axis(SGX:5CP), Hong Kong Land(SGX:H78), Golden Agri-Resources(SGX:E5H).

This post was a continuation of last week's market observation.

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