The social unrest and violence continues in Hong Kong for 13 weeks. Overnight, the corrupt communist puppet leader Lam withdraws the extradition bill that began the violence. China wants the legal authority to extradite any Hong Kong citizen to China. The Beijing communist leadership is lowering its heavy hand on Hong Kong wanting to squash any ideas about independence. China plans on always keeping Hong Kong under its umbrella and moving it towards its communistic rule going forward. The Beijing leaders crushed the Umbrella Revolution in Hong Kong in 2014.
The Hong Kong protesters have a different idea. They want to maintain their pseudo independence from China. The demonstrators have five demands on the table and pulling the extradition bill would only satisfy one. Nonetheless, the news that Lam will pull the extradition bill sends global markets strongly higher. The S&P futures pop nearly +30 points. The Hang Seng Index, HSI, catapults nearly 1000 points higher, +3.9%, to 26523 (blue star). In Europe, the luxury brands such as LVMH are rallying big (lots of luxury goods are sold to folks in Hong Kong and China). Companies like TIF may jump strongly in the States today.
Interestingly, minutes ago, about 6 AM EST, Wednesday, 9/4/19, the Lam decision to pull the extradition bill is already becoming muddled. The demonstrators are not reaching out to grab the olive branch since they know, when dealing with communists, they will always lie and stab you in the back.
Chinese self-proclaimed dictator-for-life President Xi is extremely concerned about the upcoming celebration of the 70th anniversary of the People's Republic of China, the filthy communist state, on October 1. The festivities are only 26 days away. Xi will make a bigtime speech and he wants the celebrations to be joyous and positive. Xi is concerned that the Hong Kong protests, social unrest and violence will sully his celebration and weaken his control.
China must have made a calculation that to send their riot police in and knock heads and crush the rebellion, like they crushed the Umbrella Movement, would make too much of a mess of things as time is running out ahead of the October 1 festivities. Thus, the Beijing leaders, who are the puppet-masters of idiot Lam, are taking the approach to calm the protesters by announcing plans to pull the extradition bill. China may make other concessions with the sole goal of keeping things quiet so the celebration of communism goes off without a hitch. Of course once the festivities are over, China will crush the Hong Kong protesters.
The Hong Kong demonstrators are not stupid. With technology and the internet nowadays, more and more of the huddled masses are beginning to understand how the elite class is screwing everyone else all around the world in Western and commie nations. September will be fascinating to watch. The protesters may actually ramp up the unrest to purposely try to soil the upcoming celebration. One of the young protest leaders was in Taiwan yesterday trying to gather support. The Chinese leadership must be livid at such bold actions. Taiwan is no fan of the mainland and most there would like to be completely independent of China. Seeing the red communist China flag burning in the streets of Hong Kong must also enrage the Chinese leadership. They will eventually round up all these people involved and put a bullet in their heads. Such is the world.
The HSI chart prints a death cross where the 50-day MA stabs below the 200-day MA (black circle). As Keystone always says, be alert for a pop in price when a death cross occurs since it takes a long time of gloominess to create the negative cross. By the time the cross happens, price is ready for at least a dead-cat bounce.
The green lines show positive divergence in play which bounced price. The death cross occurs and price was soggy for a bit, but then bounced again forming the sideways triangle pattern. The vertical side is about 1200 points so a breakout above 26K would target 27.2K.
Governments obviously consult chartists for input since the political news can be timed properly to provide more bang for the buck. The corrupt Federal Reserve and other global central bankers have been routinely following this scenario for the last decade. The daily chart was agreeable to a bounce and buoyancy and the positive news about pulling the extradition bill launched price with the gap-up move today.
The HSI will simply keep dancing to and fro depending on the latest soundbite. Hong Kong futures are falling on the news that the positive news may already be muddied. S&P futures are at +23 dropping off the highs over the last half hour. Watch Hong Kong this month into the commie celebration October 1. There will surely be fireworks. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added Thursday Morning, 9/5/19: President Trump flinches and, if news reports are correct, the US and China agree to meet in October for trade negotiations after the 70-year communist anniversary festivities. Trump probably made the back-door agreement with Xi in exchange for something else, perhaps, humorously, China promises to buy more soybeans again. None of us know half the story of about what is going on behind the scenes. Trump probably made the calculation that there is no need to disrupt the upcoming commie celebration, the US will look good if they avoid this, while at the same time the Hong Kong protesters likely will seek to sully the communist festivities on October 1.
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