Bullish week for U.S, Singapore, HK. Weekly market observation 15Oct2021

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

Bullish week for U.S, Singapore, HK. Weekly market observation 15Oct2021
Photo by Hans Eiskonen / Unsplash

This has been a bullish week for global stock markets. Stock indices from U.S, Hong Kong and Singapore did well.

It was mentioned in last week's market observation that if S&P500 moves up convincingly overcoming the 21-day and 50-day moving average resistance, it is a bullish sign. This bullish signal appeared this week. With the U.S stock market resuming its bullishness, it become safer to invest in Asian markets, given the strong influence of U.S markets on overseas markets.

S&P500 daily chart. Bullish signal on 14Oct2021

S&P500 bullish signal on 14Oct2021 was earlier reinforced by bullish follow-through days on Straits Times Index (13Oct2021) and Hang Seng Index (11Oct 2021).

STI. Follow-through day on 13Oct2021
HSI. Bullish up day on 11Oct2021
Broad market statistics 15Oct2021

The broad market statistics above was generated by software I wrote by scanning through all the securities currently trading in the respective stocks markets today.

From the percentage of stocks above 21-day, 50-day and 200-day moving averages, Singapore broad market is in a stronger condition than Hong Kong and China markets. The number of 52-week highs exceeds the number of 52-week lows in the Singapore market. I am more optimistic about Singapore stock market than Hong Kong stock market. I have resumed buying Singapore stocks this week.

Although Hang Seng Index looks bullish this week, the weak HK broad market makes me hesitant to buy HK stocks. The bigger worry comes from the weak China stock market. When this giant is weak, it is hard to be confident that the smaller HK market can stay strong. I will prefer to see a recovery in China's stock market before going aggressive in HK stocks.

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

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