Your Guess of future direction

Check out the above charts.

One is NVR, a US stock, back in 2008.

Another is HSI, HK stock index, from 2008 till present.

Both charts show you an uptrend being broken and fell off sharply.

NVR experiences indicate falling off a rising trend will bring price back down to the start of the trend, in fact, such behavior repeated itself in a very short while.

HSI haven't traced such behavior because the rising trend is formed over almost 13 years, falling off the trend will probably take quite a long while to get it to the starting point, if it ever will.

Any readers who can throw some light on HSI future behavior, please comment below.

Investing in US stocks should check it out

https://on.mktw.net/3aTVj9y

US stocks investors should check out above article.

HSI hit by at every angle

When you have two major shareholders unloading or about to unload chunks of large cap stocks of HSI, which level do you think HSI will settle before a bull market take off, it's probably a billion dollars question.

The two stocks mentioned are 700 and 1211.

Adding 9988 which is rumored to have been mortgaged by Softbank to GS without recourse, then HSI is hit at every angle by these large cap stocks unloading in the market.

The Grey Rhinos

This round of rate hiking and QT could cause a breakup of EU as the market is selecting winners and losers.

As ECB stopped QE, hikes rates, Italian and Greece Treasury rates passed 4+% and rolling over such bonds can cause a breakdown of government refinancing pushing countries to decide whether to stay in the EU.

Borrowing Yen on the cheap with low rates and carry trade it with USD can earn you good returns, but what if Yen falls too fast and Japan government decided one day to raise rates to prevent it from falling and Yen snaps back from say 145 to 135 and again to 125.

This is an imaginary situation that can happen and will cause great distress to the markets.

Beware of such grey rhinos creeping in the background, it could one day really pop.