By Chris Becker
It’s not been a good week if you’re a long only holder of stocks, with rising volatility spilling over into some frenetic selling on Wall Street and other interconnected markets. Friday night saw another bad finish to the week with US stocks now at a six month low, tech stocks leading the selloff as despite a better than expected GDP print, the internals did not give much confidence. The Trump sugar hit is starting to bite and give trader’s brain freeze, with the expectations of more interest rate rises punching the rally harder than expected. The USD remains king although it slowed down its ascent on Friday night on the GDP print but all the majors are in very weak positions.
Looking at Chinese stocks first, last week saw the Shanghai Composite continue its malaise, again finishing below terminal support at 2600 point level,after an intraweek false breakout. The weekly candle is a spinning type which may indicate a bottom – note last week’s wick underneath suggesting buying support – but I’m nowhere near convinced the selloff has finished:
