Bursa KLCI

21 August 2018 – The Superbull continues with new all-time highs

Indices
Dow Transportation closed at 11436.36 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 114.78. Intermediate Cycle is positive and rising slope. Short Term Cycle is positive and rising slope. Market direction – Buy. Fractal Bias – Bullish.

Dow Industrial closed at 25822.29 with an inverted hammer candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 103.92. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction – Buy. Fractal Bias – Bullish.

Russell 2000 closed at 1718.05 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 23.38. Intermediate Cycle is positive and rising. Short Cycle is positive and rising. Market direction: Buy. It has exited its Squeeze. Fractal Bias – Bullish.

Nasdaq 100 closed at 7397.2257 with an inverted hammer candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 53.04. Intermediate Cycle is positive and falling slope. Short Cycle is positive and falling slope. Market direction: Sell. Fractal Bias – Bearish.

S&P 500 closed at 2862.96 with a gravestone doji candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 11.91. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

Metals and Commodities
WTI Crude oil futures (CL) closed at $66.15 per barrel with a tiny candle on its 8 EMA and below its 21 EMA and 50 SMA. Daily trading range was 0.2. Intermediate Cycle is negative and falling slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Gold futures (GC) closed at 1202.7 with a bullish candle above its 8 EMA and below its 21 EMA and 50 SMA. Daily trading range was 10. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Agriculture (DBA) ETF closed at 17.25 with a spinning top doji candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.175. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Commodities (DBC) ETF closed at 16.84 with a small bullish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.097. Intermediate Cycle is negative and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. Fractal Bias – Bearish.

Bonds
Bond futures (/ZB) closed at 145’09 with a hammer candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.6875. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

High Yield bond ETF (HYG) closed at 86.21 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.2. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a weekly Squeeze. Fractal Bias – Bullish.

Currency
The dollar index ($DXY) closed at 95.212 with a bearish marubozu candle below its 8 EMA and 21 EMA and above its 50 SMA. Daily trading range was 0.674. Intermediate Cycle is positive and falling slope. Short Cycle is positive and falling slope. Market direction: Sell. Fractal Bias – Bullish.

EUR/USD closed at 1.1569 with a bullish candle above its 8 EMA and 21 EMA and below its 50 SMA. Daily trading range was 0.0122. Intermediate Cycle is negative and rising. Short Cycle is negative and rising. Market direction: Buy. Fractal Bias – Bearish.

USD/JPY closed at 110.28 with a ‘rolling pin’ candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.774. Intermediate Cycle is negative and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. It is in a Squeeze. Fractal Bias – Bearish.

6S (Swiss Franc) – closed at 1.0109 with a bullish candle above its 8 EMA, 21 EMA and on its 50 SMA. Daily trading range was 0.006. Intermediate Cycle is negative and flat. Short Cycle is negative and flat. Market direction: Buy. It is in a Squeeze. Fractal Bias – Sell.

Relative Strength – Sectors On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLU, XLV, XLI, XLP, XLK, XLY, XLB and XLF.

On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLU, XLV, XLP, XLY, XLI and XLF respectively.

Market Internals
Market sentiment is rather Bullish. Market breadth is rising and shows more gainers to losers. Volume Accumulation/ Distribution is rising and shows nett accumulation. Skew is at 144.70. Vix is at 12.86 and Vix futures is at 14.80.

The Week Ahead
Skew continues to be elevated for the past few weeks. Vix is below 13 and Vix futures has risen to above 14 indicating a near term volatility. Market internals are showing strength. The prognosis is for a bullish bias but caution is warranted as the US dollar uses strength.

To YOUR wealth!

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