The following article is sourced from: Hong Kong Soros (pseudonym)

Edited by: Well Link International Securities

Market Overview

Technical: SPX and NDX rebound from panic, formed a potential bear flag. SPX corrected around 8% from peak which still within normal correction range. 

Long-term structure equity bull market still in play. However, short-term range bouncing is expected ahead of US election. It’s a no easy money market.

Sentiment: Extreme fear. 

Market Breadth: improved from oversold to neutral.

Macro:  Jobless claims data supports strong US economy.  

Stocks:

• SVXY – short volatility ETF provides good risk/reward and volatility

• Recession hedge pair – Short HYG against Long LQD rebounded to good level to re-entry.

• Risk on & rate cut pair – Short GLD against Long SLV provides good upside if there is a liquidity bull market in risk assets.