U.S market weakened further. HK in correction. China starting to look shaky. SG continues to decline. Weekly cap(17 Sep 2021, Fri)
SG(risk-off) HK(risk-off) CN(risk-on)
| Stock index | Daily change | 21EMA* | 50EMA* | 200EMA* |
|---|---|---|---|---|
| Hang Seng Index | 1.03% | -2.96% | -5.11% | -8.30% |
| Straits Times Index | 0.22% | -0.61% | -1.29% | 0.81% |
| CSI 300 Index | 1.00% | -0.98% | -1.86% | -2.34% |
| ASX 200 | -0.76% | -0.80% | -0.41% | 4.69% |
| Nikkei 225 | 0.58% | 3.66% | 5.87% | 9.58% |
| NASDAQ 100 | -1.18% | -0.47% | 1.38% | 11.05% |
| S&P 500 | -0.91% | -0.93% | 0.14% | 7.89% |
| Dow Jones Industrial Average | -0.48% | -1.17% | -0.99% | 4.48% |
| S&P 400 mid-cap | -0.71% | -1.22% | -1.02% | 4.83% |
| S&P 600 small-cap | 0.14% | -0.77% | -0.91% | 4.90% |
| German DAX | -1.03% | -1.50% | -1.31% | 3.82% |
| French CAC 40 | -0.98% | -0.92% | -0.22% | 5.77% |
| UK FTSE 100 | -0.91% | -1.66% | -1.71% | 1.23% |
* percentage over exponential moving average
This week is a bad week for stock markets. Look at the stock indices in the table above. All the major indices(Asian, U.S, European) are below 21-day moving average. Most of them are below 50-day moving average. Nikkei225 is the only strong man standing out.
Another worrying sign comes from the currency markets. USD is a safe-haven currency. It strengthens when global stock markets are weakening. The strengthening USD during the past 2 days is an indication of weakening global stock markets.
One week ago, U.S market started to look shaky. It weakened further this week. HK market is obviously in a correction. China market is struggling to survive. SG market continues its decline.
I took partial profits in some of my bigger winners(1205.HK, 257.HK) in the HK portfolio. When the market is bearish, better take some partial profits first because good gains can evaporate quickly.
Action for HK market (risk-off)
- Get the stops ready and sell stocks in the portfolio on weakness.
I took partial profits in my Singapore portfolio in some of my bigger winners, which I have held for more than half a year. They are Yangzijiang and Apac Realty.
Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in the portfolio on weakness.
I reduced my risk exposure to the China market. Took some quick profits, took some losses. I will not be adding more stocks to the China portfolio until some improvement is seen in the stock indices.
Action for China market (risk-on):
- Look actively for buying opportunities but don't buy yet until market conditions improve.
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