Sunday, July 22, 2018

True Price Reflection: A Classic Divergent Trend - SP500 RUT2000 DAX Vs. HSI

A clear cut 'DIVERGENT TREND' for the past (11) consecutive trading days between US Equity Indices, NK225 compared with Hang Seng Index HSI reflects the, true sentiments where prices had a bigger impact from the trade spat. Other Asian countries have followed the price action from the 2nd largest economy with the exception from those that are well ALIGNED with US POLICY. On the other hand, tactical investors & traders do know what and how to take advantage of these market conditions where a defined trend along with price action have been moving prices in similar direction. But the fact remains is how well other traders perception sees it that way or believes otherwise would take action with US equities already on record levels.

Russel 2000 small-caps and German DAX would benefit more from these market conditions as it paces major indices to another record highs. For now US investors although concerned would still back US equities at this time which can only signal who wins in this tit-for-tat but rather the fact remains US growth is on track. 




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