We continue to be bullish on the main indexes since all 3 of them are in an uptrend. The month of November is also a bullish month for them.
Let's take a look at the charts below. The latest ones are on top.
*p.s. I update this everyday before opening bell, so you need to bookmark this page and press the refresh button.
Today let me take you on a tour of the Hang Seng Futures. Which is the index for North Korea...LOL...no, its the index for Hong Kong. Just wanted to see if you know your facts and are paying attention.
As you can see above, the Hang Seng index is in a daily uptrend. It is above its rising 50 MA and rising 200 MA. When an index is above these rising moving averages, it is a picture of long term health and mid term health. So, a stock index that is in an uptrend is usually great areas for traders to buy on dips.
They are also great areas for traders to buy breakouts as well.
The most recent beautiful rise happen when the index touched the rising 50 MA and formed a bottoming tail candlestick pattern. Actually we can consider it to be a super bottoming tail since the tail is so long. The index had a nice rise after the appearance of the bottoming tail.
But what I want to bring to your attention is how traders will enter the index or stocks as it hits the rising 50 MA. They will enter as the bottoming tail is forming not after it has formed. Therefore, they tend to get great entries which results in great risk reward ratios if the trade works out.
By the way, indexes and stocks that hit the 50 MA can give great buying opportunities which I have mentioned in my article the The 7 Best Times To Buy Stocks For Short Term Trading. The 50 MA is actually one of those times.
If you are wondering how traders can enter the index at the lows when it hits the 50 MA, you can hop on and read about the trading strategy I called The 5MD50 Bullish Trading Strategy. The chart above is the 5 min chart of the Hang Seng index on the day that it hit the daily 50 MA.
Traders can enter the index as it bottomed when it made an ascending triangle bottom and when it traded back above the 5 min 20 MA. Or the less aggressive trader can us the 5MD50 trading setup and enter when the index trades back above the 5 min 50 MA.
For today's last chart, let's take a look at the daily S&P 500 futures chart.
Well, all I can say is that it is still in a beautiful strong uptrend. Notice how the index stays above the rising 20 MA and rising 50 MA and rising 200 MA. A picture of bullishness.
I think some people may wonder why the S&P 500 index can still keep on going higher all these years despite the US government debt growing and growing and growing and is now standing at 20 Trillion USD!
Well, the first reason is simply because the S&P 500 is in an uptrend. That is not a joke my friend. The maxim the trend is your friend holds through and sometimes you do not need to understand why it goes up but just need to follow the trend.
But for those who want to know why the S&P 500 is going up despite the growing debt crisis and the ever presence debt ceiling problem...
The reason why it is going up is because the S&P 500 is no longer a true representation of the US economy. Lots and lots of companies in the S&P 500 make their profits from out of the United States. Some even make 50% of their profits from foreign countries.
Think about Apple.
Are they just selling their stuff to US citizens? No, they are raking in profits from consumers all over the world.
Which is why if the earnings of the S&P 500 companies keep on growing and growing and growing, the S&P 500 has no way to go but up. Of course there will come a time when markets will crash but for that I think it needs to have a parabolic move up where there is a buying frenzy.
At this moment the S&P 500 is trending up slowly higher step by step and that is good news for trend followers. Until then let us stay bullish with the S&P 500 and follow the trend.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
May 06, 19 06:04 AM
Technical analysis of the US stock market with coverage of futures.
May 06, 19 05:46 AM
Step by step technical analysis of the KLCI Malaysian stock market.
Apr 22, 19 06:55 AM
A technical analysis of the US stock market. I go through the major indices of the US market and see where it is likely to go.
Apr 22, 19 06:47 AM
Technical analysis of the Hang Seng. Learn how the Hong Kong stock market is doing and where it is likely to go.
Apr 22, 19 06:36 AM
Technical outlook for Malaysia's biggest market cap stock.