I'm Brandon, a senior stockbroker at a local securities firm and also a professional trainer with Singapore Exchange (SGX) Academy. Holder of Chartered Market Technician (CMT) and Certified Financial Technician (CFTe) with over 10 years experience in the financial industry.

This blog aims to share how private traders can forecast price and trade in line with the market and smart money by applying Wyckoff principles and simple technical analysis techniques.

Tuesday, 7 May 2019

US China Trade Deal & China A50 Index


China A50
China A50 comprises 50 largest companies listed on China (A-shares). And these companies will be the first in-line to be impacted by outcome of the US-China trade talk.

With the index trading in Mark Down phase, Smart money is pricing in that the upcoming US-China trade deal may not be as successful as anticipated. Our proprietary FFI indicator is also suggesting funds exiting the index.

As investors or traders who are looking to long on cyclical sectors, its crucial to monitor the current downtrend line (Red) governing the mark down phase. 

Only with a successful breakout coupled with accumulation phase sighted, may signal a potential turn around and reduce risk of entering the market too early.

Till then, trading or allocating funds in defensive sectors or short-side trades would be preferred in current conditions.

Disclaimer Applies.

*Above chart is a CFD tracking FTSE China A50 Index