On Fri, US market rally on the news of China Interest-rate cuts and European Central Bank, Mario Draghi, open the door wide for more QE.

The market has so many good news.

What will happen on Monday when Asia market start trading? I do not have a crystal ball and predict what will happen on Monday.

I can only look at chart and see what kind of messages are sending to the market. We need to teach ourselves to understand those messages and how to combine into a coherent whole.

PS If you are reading this post for the first time, you may wish to follow this link to understand the reason why I do a “Tour Around the World” during the weekend.

Before we proceed to our worldwide market, let’s look at the chart of SSE when china announced interest-rate cut in Jul 2012. What did the chart showed?

Surprise! SSE went down….

Will the history repeat itself? I don’t know but stay caution!

Let’s look at the major indices and read what kind of messages they are sending out.

Tokyo Stock Exchange (Nikkei)

Nikkei index closed at 17,357.51 points, down 133.31 points for the week.

Daily MACD Histogram is ticking down.

Weekly Impulse system is green (you can long or stay sideline but prohibited for short selling).

London Stock Exchange (FTSE 100)

FTSE index closed at 6,750.80 points, up 96.39 points for the week.

Weekly MACD histogram cross over the zero reference line.

Weekly Impulse system is green (you can long or stay sideline but prohibited for short selling)

Shanghai Stock Exchange(SSE)

SSE index closed at 2488.79 points, up 7.967 points for the week.

All the hype of Shanghai-Hong Kong stock connect but only ended up 7 point?

Last week, I have stated that it will be better for investor to stay sideline and watch the show.

I will buy pop corn and sit in front of my monitor to watch the show again.

Hong Kong Stock Exchange (HKSE)

HKSE index closed at 23,437.12 points, down 650.25 points for the week.

HKSE has a missing right shoulder.

Weekly Impulse showing red (you can short or stay sidelines but prohibited to buy). Caution for HKSE, protect you long position with hard stop.

Frankfurt Stock Exchange (DAX)

DAX index closed at 9732.55 points, up 479.61 points for the week

DAX is on uptrend after ECB announcement.

Weekly MACD histogram is ticking up and seems like it will break the resistance.

Kuala Lumpur Exchange (KLSE)

KLSE index closed at 1,809.13 points, down 4.66 points for the week.

My last week comments:

“for the coming week, If I am Malaysia trader/investor i try not to have any long position. MACD histogram is showing "missing right shoulder". Stay caution.”

KLSE is still in downtrend, the index has closed lower than the previous week.

In Summary, we will see how Asia market will react to China interest-rate cut.

Definitely not the most bullish pictures but certainly Markets are much more bullish than one week ago.

PS if you wish to attend a small gathering on 13th Dec 2014, you can read this link. Thank you for helping me to achieve 1000 visitors in less than 1 week. Good news, I have achieved 7000 page views and 1700 visitors in less than 2 weeks.

Best wishes,

Divergence Trader Francis

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Disclaimer: This blog is created for the sole purpose of education, discussion and knowledge sharing. All charts and information can be obtained freely from the internet. All analysis are based on my own personal view and years of experience. It should not be used as a decision to solicit buy/sell activity. Use all information at your own discretion and practice due diligence.

The post “Tour Around the World” Weekly Market Review – 24/11/14 appeared first on Divergence Trader.