Technically Speaking For September 11

Sep. 12, 2018 10:54 AM ET
Hale Stewart profile picture
Hale Stewart


  • Hong Kong and Vietnam have entered bear markets.
  • In fact, most of the ETFs that track broader global equity markets are either moving lower or are already near 52-week lows.
  • Prices moved higher Tuesday.

It's hard to forget this day, isn't it? I was in law school on September 11, 2001. It was the first semester of my first year. I'm not sure when I first heard about what was happening, but I do remember being downstairs in the dining area and watching the news. Then there was an announcement that the school was closed (we were in the same building as a state appellate court and were therefore considered a hard target). I also remember being off the next day as well. There were several people who dropped out of law school, citing the 9/11 attacks as their primary reason. Anyway, those are my memories of this very depressing day in U.S. history.

I've already noted the divergence between U.S. markets and the rest of the world. Now Hong Kong is in a bear market:

Hong Kong’s stocks fell into a bear market Tuesday, another casualty of an international selloff driven by trade tensions, a stronger dollar, and worries about the resilience of developing economies.

And so is Vietnam:

Prices have dropped from 20.5 to an absolute low of 15.03 and are now just below the 200-day EMA in the mid-16s. Equity markets are leading indicators, which means we should definitely be paying attention to this development. Due to the increased international financial linkage, it's difficult seeing the divergence between the U.S. and other international markets lasting. One should logically give. And considering the U.S. market is a single market (albeit it a very large one) and the rest of the world comprises many markets, it seems natural that it's the U.S. that should move lower.

And since we're talking about global markets, and this is a chart-oriented column, let's look at the one-year charts of the ETFs that track global markets:

Australia (top

This article was written by

Hale Stewart profile picture
Hale Stewart spent 5 years as a bond broker in the late 1990s before returning to law school in the early 2000s. He is currently a tax lawyer in Houston, Texas. He has an LLM in domestic and international taxation (MagnaCumLaude). He is the author of the book The Lifetime Income Security Solution. Follow me on Twitter at @originalbonddadYou can read his legal analysis on his law office's blog.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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