Week 44 Stock Market Roundup — Heavy Construction group in focus

Despite the changes spotted in Week 43 stock market roundup, the confirmation (commitment above 3450) that I am waiting for did not show up. Instead, there was a failure happened right at the resistance, which I mentioned on 26 Oct’s video — Where is S&P 500 market heading?

S&P 500 futures (ES) tested the support zone 3200–3230 again, which was the previous swing low and the support zone formed via the buying climax in Jun 2020. On 28 Oct, S&P 500 had a sharp correction, which entered into oversold condition followed by shortening of the thrust to the downside and reacting to the support zone 3200–3230. Commitment above 3330 is required to switch to bullish bias.

Since last Monday (26 Oct) the market already hinted the start of the down swing, there are plenty of opportunity for traders to ride on the downtrend to profit from a down swing or two. Watch the video below to find out how to trade the breakout to take advantage of the selloff by identifying the market weakness:


Industry Group for Study — Dow Jones US heavy construction Index (DJUSHV)

Since Oct 2020, heavy construction index (DJUSHV) started to outperform the S&P 500. The index is currently testing the resistance zone. A break above the resistance should see acceleration to the upside.

Unlike the technology sector, many stocks within the group is still in their incipient phase of the markup phase. Here are some interesting stocks to watch in terms of their price structure and volume: FLR (FLUOR CORP), PWR (QUANTA SERVICES), AMRC (AMERESCO INC), MTZ (MASTEC INC).

Stock Watchlist — Malaysia

VS (V.S INDUSTRY BHD) — Hold up relatively well during the market reaction. Support at 2.1–2.2.

JHM (JHM CONSOLIDATION BHD) — Despite low supply, the quality of the demand is still poor. Support is at 1.55–1.7. Commitment above 1.8 could see JHM to test 2.0.

FRONTKN (FRONTKEN CORPORATION BHD) — spike of supply took FRONTKN down. Support is at 3.25.

FPGROUP — spike of supply on 6, 15, 23 Oct 2020 and failed to overcome the resistance at 1.07 paints a bearish picture. A break below 0.93 could trigger the selloff.

MI (MI TECHNOVATION BERHAD) — Spike of supply reacting to the earning pushes price back in the trading range. Support is at 3.7.

PENTA (PENTAMASTER CORPORATION BHD) — Hold up relatively well during the market reaction. Support is at 4.7–5.0.

Stock Watchlist — US

MSFT (MICROSOFT) — Correction in line with the market reaction. MSFT is within the trading range 198–217.

META (FACEBOOK) — FB failed to overcome the resistance at 284. Support is at 250.

SE (SEA Limited) — SE broke down from the up channel. Currently testing the support zone 153–160.

JD (JD.com) — JD is holding up well during the market reaction. It is expected to break above 86 when the market reverses up.

NET (CLOUDFLARE) — Support at 53–55 was broken and currently testing the momentum bar on 12 Oct 2020. Supply is low in general.

NASDAQ:LVGO (LIVONGO HEALTH) — Support at 133 is still holding. LVGO is likely to challenge the swing high at 150.

PTON (PELOTON) — PTON is in correction mode similar to the market. Support is at 100.

BABA (Alibaba Group Holdings) — similar to JD, BABA is holding up well during the market reaction. Support is at 300.

BTG (B2GOLD CORP) — BTG corrects with slight increasing of the supply, tested the support at 6.0. Trading range between 6–7.0.

FSLY (FASTLY INC) — FSLY broke below the support at 74, which is a sign of weakness. A failure to commit above 74 will see more selling in FSLY to test lower support 40–50.

SQ (SQUARE INC) — supply spiked on 30 Oct 2020 with big spread bearish bar back below the support at 160. The next support is at 135.

APPS (DIGITAL TURBINE INC) — As mentioned in Week 43, APPS tested the support at 29 with a long demand tail. Support zone is at 25–29.

AVGO (BROADCOM INC) — As spotted in Week 43, AVGO tested the support at 346 after failure to hold at 368.