While the focus is on equities...

On the other side of things, gold and silver has made tremendous runs over the past 2 weeks and the run has been parabolic.

One should not chase these two precious metals at this moment and should wait for pullbacks to find a good entry.

Looking at gold, the consolidation has been taking place since April and recent breakout has made a tremendous 9.63%. Looking at Gold futures which is currently trading at 1929 and the massive news coverage on Gold, it is likely to push higher for the next few days due to retailers joining in and likely due for a pullback but I don't expect it to tank considering the latest news on the 1 trillion bailout package that the US government is trying to lobby. If that happens, expect Gold to make even more parabolic moves as many central governments will look to get physical gold to back their currencies.

GLD Daily

GLD Weekly



Looking at the Silver chart, it has also made diabolic moves recently and it is really relentless in its up move. I will share more insights once I go through some of the news/charts as I have not really been following Silver but if Gold moves, all the other precious metals will naturally tag along as well.

SLV Daily


SLV Weekly

My analysis of Facebook

Below is the daily chart of FB and it seems to be consolidating since 26 May within the range of $244.76 and $224.20 as per the Fibonacci retracement. A consolidation might be a sign of uptrend considering at the moment there's some distribution of funds from tech to other sectors.

It's worthwhile to take note
- for the moment that the entry for FB might be good between $218 and $224 which there is a gap fill.
- it is now trending below 50MA and will need to see how it closes this week.


*I do not own any FB shares currently.

Key point to note: It is not about how the stock prices open but more importantly how it closes for the day and week. 

Key notes over the weekend:

Looking at the Hong Kong market, Monday will be the start of the new Hang Seng Tech Index and judging from the price action movement in Nasdaq over the last 1 week, the index might not start well however Nasdaq seem to recovered slightly on Friday and major Nasdaq components (Apple, Amazon) and semi conductors (Nvidia) recovered from its intraday lows. Its weekly chart is still in an overbought state and probability of retracting is higher.

Will look to cover the following next week in lieu of the HSTI on ATMX:
- Alibaba
- Tencent
- Meituan
- Xiaomi


Nasdaq Daily:

Nasdaq Weekly:

Key notes on Microsoft:

Microsoft revenue grew 13% despite coronavirus and here’s how the company did: 

Earnings: $1.46 per share, adjusted, vs. $1.34 per share as expected by analysts, according to Refinitiv.

Revenue: $38.03 billion, vs. $36.50 billion as expected by analysts, according to Refinitiv.

However, looking at the charts, it shows a different picture where it was sold down from its highs. Using the Fibonacci as a guide, it hit its 138.2% mark and seems like it is unable to break through. Based on yesterday's close it is now below its 123.6% mark which we will need to see the weekly close to determine if it will retract back to $191.35.

*I do not own any MSFT shares currently. 

Hong Kong to launch Hang Seng Tech Index. 

This is mirroring the US Nasdaq where the top 30 tech stocks in HSI will be part of this Hang Seng Tech Index.

This will be launched from 27 July onwards and it will be interesting to see how this will mirror the US Nasdaq movements.

Some of the most valuable Chinese Internet companies as its constituents includes Alibaba Group Holding (9988.HK), Tencent Holdings (0700.HK), Meituan Dianping (3690.HK) and Xiaomi (1810.HK).

More details in the link below: http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1029097/popular-news

My view on Apple:

It has been a significant run for Apple since the February highs and March lows and relentlessly moving up to its all time high at $399.82, which is close to the $400 psychological mark.

Using the Fibonacci indicator as a guideline, it was close to its 161.8% mark and started to retrace back to the 150% mark. If it starts to consolidate at this range, it might position itself for a higher up move. Looking at the recent market moves in Nasdaq, the consolidation range might be touching $371 which is at the 138.2% mark.

Long term trend is still up.

* I do not own any Apple shares currently.

Key notes:

Markets seems to be volatile after options expiration from last Friday. Nasdaq has shown strength during the opening hours and start to sell down throughout the day. 

Stocks to take note:

- Apple

- Microsoft

- Facebook

will share the charts and see whether there is any good entry point. 

It's been a while since a new post... and will look to share some thoughts on the markets since COVID-19 has engulfed the world for the past 6 months.

Barclays to launch £5bn-plus rights issue

Getty Images

Barclays will on Tuesday launch a rights issue to raise more than £5 billion as the UK bank moves fast to come into line with British regulatory requirements on leverage, according to two people briefed on the transaction.

Antony Jenkins, who took over as Barclays' chief executive a year ago, will also unveil details to shrink the bank's balance sheet.

(Read more: Barclays to fight $453 million power fine in US court)

The moves, which echo initiatives at Deutsche Bank in recent months, will leave Barclays with a core tier one capital ratio of around 9.5 per cent under "fully-loaded" incoming Basel III rules, according to one person briefed on the plan. That ratio – which measures equity as a proportion of risk-weighted assets – brings Barclays back into line with global rivals, after a period of underperformance.

Barclays was spurred into the capital and balance sheet measures when the UK's Prudential Regulation Authority last month said it had a leverage ratio of only 2.5 per cent, after factoring in expected losses and other costs, compared with a requirement of 3 per cent.

Full Article here: CNBC

When The US Thrives, The World Prospers!

Global equity markets have sold off over the past month, on the back of fears that the Fed will begin to tighten monetary policy. What is good for the US is usually good for the rest of the world; we think investors should consider some of the attractively-valued equity markets today.

Author : Fundsupermart EQUITY MARKETS SOLD OFF ON FED TAPERING CONCERNS Global equity markets have been sold off heavily over the past month as investors worry about a potential tapering of bond purchases by the US Federal Reserve. As detailed in Top Markets 2Q 13: Taper Temper, Asia and the Global Emerging Markets have been some of the worst-hit segments as global investors withdrew capital from the region, leaving valuations of many of these markets at rather attractive levels. Curiously, investors who have been fleeing equities on fears of potential Fed tapering seem to be missing the crux of the matter – that the impending cutback in bond purchases is based on economic strength, a vote of confidence for the once beleaguered US economy. WHEN THE US THRIVES, THE WORLD PROSPERS! What is good for the economy tends to be good for stock markets (see Rising Yields: Implications for Investors), as improving economic growth boosts corporate earnings, which isthe key driver of stock market performance. Also, the sheer size and economic importance of the US economy means that any positive developments there usually results in a positive spill-over effect for the rest of the world (compare this to the often-quoted “when the US sneezes, the world catches a cold”). Continued improvement in both the housing and job market has seen US consumer confidence improve tremendously, aided also by the recovery in household net worth to a new record high on the back of rising stock and home prices. These factors have helped US consumption to remain resilient, with personal consumption expenditures (the largest component of GDP) posting 13 consecutive quarters of gains since the 2008-2009 recession. Improving US consumption is thus likely to spur various export-driven Asian and Emerging Market economies, owing to the significant proportion of exports from these countries which eventually end up in the US (the large trade deficit between the US and China is a case in point). Many economists also point to the sustained US demand for Asian exports in the aftermath of the 1997-1998 Asian Financial Crisis which allowed many of the troubled economies to post strong recoveries following the deep recession, highlighting the importance of US demand on the global trade environment. BUILDING TOWARDS THE NEXT PHASE OF PROSPERITY The recent stock market weakness suggests that investors appear to be ignoring the positive implications of an improving US economy, and have been overly-focused on the “risk” of a cutback in Federal Reserve quantitative easing, akin to a healthier patient worrying that the doctor has now prescribed a lower dose of medication. As a result of these unfounded concerns, the more cyclical markets of Asia and the Global Emerging Markets have been unfairly penalised in 2013, leaving valuations lower and making these markets more attractive for investors with a long term view. Improving economic momentum in the US has sown the seeds for the next phase of economic prosperity, and it is clear to us that as investor confidence improves, it will only be a matter of time before many of the undervalued equity markets see a swift valuation multiple re-pricing, which should translate to strong returns for investors.   SEE ALSO: Funds Promo: When US Thrives, The World Prospers! Source: Fundsupermart