|Stock index||Daily change|
|Hang Seng Index||1.91%|
|Straits Times Index||0.88%|
|CSI 300 Index||0.88%|
|Dow Jones Industrial Average||-0.78%|
|S&P 400 mid-cap||-0.93%|
|S&P 600 small-cap||-1.03%|
The last day of the week was not a bad day for Asian stock indices but it was certainly bad for U.S indices. While this blog is about Asian stocks, Asian stock investors cannot ignore what is happening in the U.S stock markets. If U.S stock markets fall into a bear market, no Asian market will be spared. This has been so historically for decades.
Throughout the 5 weekdays of this week, DJI (Dow Jones Industrial Average) has been closing negative every day. It has now fallen below the 21-day and 50-day moving average and closed near the low on Friday. U.S small caps are not doing well either. It fell in the same fashion at DJI, down on all 5 weekdays and is now below 21-day and 50-day moving average. For both indices, Friday's down day occurred volume was the highest during the week. S&P500 and Nasdaq100 are doing better but it was still a down week for both of them. The bull market is still intact in the U.S market but it looks a bit shaky at the moment. Watch Asian markets reaction to Wall Street poor performance on Friday when it opens next Monday.
Although China indices did well today, the broad market did badly. This explains the relatively large loss in my China portfolio today. Hong Kong portfolio suffered minor losses. Singapore portfolio made some gains which is natural rebound after the bad losses for the past 2 days.
Action for China market (risk-on):
- Look actively for buying opportunities.
- Buy when good stocks appear on watchlist and price is within buy range.
Action for HK market (risk-on):
- Look actively for buying opportunities to place on watchlist.
Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in portfolio on weakness.