HSI makes follow-through day. Market action 31Aug2021 (Tues)
SG -> risk-off. HK -> risk-on. CN -> risk-on
| Stock index | Daily change |
|---|---|
| HongKong Hang Seng Index | 1.33% |
| Singapore Straits Times Index | -1.52% |
| China CSI 300 Index | -0.16% |
| Australia ASX200 | 0.41% |
| Japan Nikkei 225 | 1.08% |
Today is a bullish day for Hang Seng Index(HSI). It is a follow-through day, a term coined by William O'Neil. At one point in the day, HSI was down 1.68% but it reversed higher to close at 1.33% in above-average volume.
The mood in the HK stock market has changed. I will start buying Hong Kong stocks when good ones appear on the watchlist. Yesterday, I also noticed that a higher number of momentum HK stocks appearing on my stock screen.
Take care not to get too aggressive when buying. HSI still hovers below the 21-day, 50-day, 200-day moving average. It is still weak.
Action for HK market (risk-on):
- Start looking actively for buying opportunites.
- Buy when good stocks appear on watchlist and price is within buy range.
In contrast to the HK market, today is a bad day for STI and Singapore market. STI closed -1.52% in above-average volume and is near the May low this year.
Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in portfolio on weakness.
China stock indices closed negative today but most were off the lows. One thing I observed in recent weeks is the big-cap Chinese stocks are under-performing this round but the broader market has become healthier at this point in time. This is the reason for me to resume buying China stocks since last week despite the ugly chart of CSI300.
Action for China market (risk-on):
- Start looking actively for buying opportunites.
- Buy when good stocks appear on watchlist and price is within buy range.
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