HSBC’s technical-analysis team has thrown up the ultimate warning signal.
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks.
Gunn uses a type of technical analysis called the Elliott Wave Prinicple, which tracks alternating patterns in the stock market to discern investors’ behavior and possible next moves.
In late September, Gunn said the stock market’s moves looked eerily similar to those just before the 1987 stock market crash. Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. On September 30, Gunn said stocks were under an “orange alert,” as they looked to him as if they had topped out.
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Time For Truth: (Business Insider) – HSBC: RED ALERT — get ready for a ‘severe fall’ in the stock market
Yesterday’s big stocks drop may have just been the beginning.
Or so says HSBC Holdings Plc technical analyst Murray Gunn. In a new note, Gunn says he is now on alert for a big dip in U.S. equities. “With the U.S. stock market selling off aggressively on October 11, we now issue a RED ALERT,” he writes. “The possibility of a severe fall in the stock market is now very high,” he adds, noting that volatility has continued to rise since the end of the summer and the recent sell-off was seen across many areas of the market, and not just select groups.
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Time For Truth: (Bloomberg) – HSBC: There's Now a Very High Chance of a 'Severe Fall' In U.S. Stocks
Europe’s largest bank reported the one per cent increase on the previous year’s pre-tax profits, which were £13.1 billion.
The bank’s adjusted profits were down seven per cent at £14.3 billion compared to £15.4 billion in 2014.
HSBC said its adjusted revenue had risen by one per cent from £40 billion to £40.4 billion.
A Swiss court has convicted a former HSBC worker of economic espionage and sentenced him to five years in jail.
Herve Falciani was on trial for leaking bank data that led to tax evasion probes worldwide against prominent clients with accounts in Switzerland.
Falciani did not attend the trial and because France does not extradite its own citizens, it is unlikely he will serve the sentence.
HSBC Holdings Plc said most of the 275,000 payments from U.K. business customers it failed to process Friday were completed by the end of the day after a software problem held up transactions before a long weekend.
The system breakdown resulted from an information-technology glitch and isn’t related to hacking or criminal activity, according to a person with knowledge of the matter, who asked not to be identified because an internal investigation by the bank is private. The failure delayed transactions on the final business day of the month, when many British salaries are paid.