by Chris Becker
Unless you’re trading Japanese stocks its been another boring day here in Asia as re-positioning takes its toll on risk managers, exhausted by the end of the US presidential election.
The Shanghai Composite is down a few points as the lunch break unfolds, hovering just above 3200 points in a very small correction that was warranted given the recent breakout. The Hong Kong based Hang Seng is up 0.6% at 22461 points, but still no indication yet that’s its correction is over with the downtrend line still intact, but a possible long swing brewing here:
In Japan, the Nikkei is up over 1%, catching up to bullish futures action overnight as Yen remains weak against USD. The USDJPY has paused here after shooting a little too high overnight, hitting the 109 handle, but the 4 hourly/daily trendline remains intact as this bull trend unfolds:
S&P Futures are up slightly heading into the European session trying to build on last night’s breakout, with the ASX200 about to close slightly in the red after a positive start that was flushed away as the day unfolded.Resistance overhead at 5400 points is just too high.
The Aussie dollar is again going nowhere, with all the action in Yen, still stuck at around 75.50 against USD. Again, just watch the ratcheting ATR resistance line above for signs of a reversal:
Are we seeing signs of stirring motion in gold? After flat lining since a correction after the Trump win, gold has shuffled sideways below $1230USD per ounce for days now. But today’s action is a little more positive with the hourly chart showing signs of a swing long position brewing:
The data calendar tonight includes UK employment stats and US mortgage applications, plus industrial production and weekly DOE crude oil inventories.