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A foul-mouthed former Philippine president who jailed political rivals, insulted the pope and claims to have hired “death squad” gangsters is running for re-election in his hometown in a desperate bid to strengthen his scandal-hit political dynasty.

Labeled “Asia’s Trump” by some commentators due to his unorthodox leadership style and bombastic rhetoric, Rodrigo Duterte is aiming for a perhaps even more unlikely political comeback than Donald Trump’s seismic return to the White House.

Duterte, 79, wants to return as mayor of Davao City, on the southern island of Mindanao, where he held power for more than two decades before leading the archipelago nation between 2016 and 2022.

His return to politics is about more than a personal quest for power, analysts say – it’s an attempt to shore up support for his family against the Philippines’ other famed political dynasty – the Marcoses, who have an opposing vision for the country, particularly its relationships with the United States and China.

In a political culture dominated by clan-based alliances, the Marcoses and the Dutertes made a vow of unity when Duterte’s daughter, Sara Duterte-Carpio, ran for vice president alongside Ferdinand Marcos Jr. – son of former dictator Ferdinand Marcos, who died in exile in 1989 after a brutal 21-year reign.

The duo won a landslide victory in 2022, but not even halfway through their term the alliance is disintegrating as Duterte-Carpio faces calls for her impeachment for alleged corruption, which she denies.

The Marcos-Duterte fallout has since descended into public tirades and name-calling – a hallmark of Rodrigo Duterte’s years as a straight-talking, filter-free president.

Richard Heydarian, senior lecturer at the Asian Center of the University of the Philippines, says the older Duterte has entered the political maelstrom to bolster his family’s defenses as they fight battles on several fronts.

“The Dutertes are at their most vulnerable moment in almost a decade,” he said.

Death squads and a war on drugs

Duterte soared to power on a promise to replicate on a national scale his anti-crime crackdown in the family’s stronghold of Davao, winning the 2016 presidential election in a landslide.

In the years that followed, more than 6,000 people were killed in his war on drugs, according to police data, though independent monitors believe the number of extrajudicial killings could be much higher.

Many of the victims were young men from impoverished shanty towns, shot by police and rogue gunmen as part of a campaign to target dealers.

The bloodshed prompted an investigation by the International Criminal Court (ICC) and a monthslong House of Representatives inquiry, as well as a separate Senate inquiry led by the cousin of the current president.

In a House hearing Wednesday, Duterte declared that he was finally ready to face the ICC, even urging prosecutors to “hurry up” and “start the investigation tomorrow.” In typically combative fashion, however, he also told the 12-hour long hearing that he would kick any ICC investigators who came to the Philippines to face him.

Duterte’s fighting talk comes after the former president made a stark admission to the Senate inquiry last month during his first public appearance in the investigations.

Before an audience of millions watching on television and online, Duterte told lawmakers he hired a “death squad” of gangsters to kill criminals while mayor of Davao City, 600 miles (965 kilometers) from the capital Manila.

“I can make the confession now if you want,” Duterte said. “I had a death squad of seven, but they were not police, they were gangsters.”

But in the same hearing, Duterte distanced himself from claims he directly ordered his national police chiefs to carry out extrajudicial killings during his time as president. He also said he told police officers to “encourage” suspects to fight back, as legal cover for the killings.

Duterte’s attempts to fend off criticism come as his daughter fights calls for her impeachment over claims she misappropriated funds from both the Office of the Vice President and the Department of Education.

Lawmakers in September deferred the approval of budgets to her office as allied political clans at odds with the Dutertes demanded more transparency and accountability over her public spending.

Heydarian, the analyst, said Duterte’s decision to run for Davao mayor marks an attempt to keep the family politically relevant, and is likely an acknowledgment that he may not have what it takes to run for a seat in the national legislature.

His return to Davao may also serve to support his sons – incumbent Davao mayor Sebastian Duterte and congressman Paolo Duterte – who are contesting the Davao election but are viewed as “out of touch” with locals, Heydarian said.

“It’s always foolish to underestimate the Dutertes given their almost fanatical base in certain parts of the country, but I think it would also not be foolish to think that the Dutertes are also now facing an existential crisis,” Heydarian said.

From unity to animosity

The Marcos-Duterte alliance was always an unlikely one. But major cracks appeared in January, when Rodrigo Duterte called Marcos a “drug addict” and threatened that the president could be removed from power.

Months later, Vice President Duterte-Carpio resigned as education secretary, a departure seen by analysts as a sign that the relationship between the country’s top leaders was beyond repair.

In October, Duterte-Carpio aired a litany of grievances against the president in a two-hour livestreamed press conference, saying she “wanted to chop his head off.” She said the Marcoses “used her” to propel themselves to victory in the 2022 election.

At one point, Duterte-Carpio spoke about Ferdinand Marcos Sr. – the late patriarch and longtime dictator. She said she had become so incensed by the attacks on her that she wanted to dig up his body and “throw it in the West Philippine Sea.”

Despite this, Duterte-Carpio told reporters she does not regret running for vice president under Marcos. “They can drag me to hell,” she said. “And when they get there, I will be the president of hell.”

Marcos insisted he thought he and the vice president were friends.

“I always thought that we were,” he told reporters on the sidelines of an Association of Southeast Asian Nations conference in September. “But maybe I was deceived.”

His son, Sandro Marcos, entered the fray, saying in a rare statement that he “cannot remain silent” as the vice president “threatens to exhume a former president and behead an incumbent one.”

At the heart of the feud is geopolitics, specifically how the Philippines should balance its relationships with China and the US, according to Ranjit Singh Rye, an assistant professor of political science at the University of the Philippines.

The incumbent Marcos administration has leaned more closely toward Washington – the Philippines’ oldest and closest ally – particularly strengthening its military alliance, in a move that reverses Duterte’s pro-Beijing tilt for investment in infrastructure.

Cozying up to China is believed to have led to the nefarious proliferation of the gambling and online scams industry, with alleged links to Chinese organized crime, under Duterte’s administration.

The leaders’ split views on the Philippines’ geopolitical standing ultimately divided the Marcos-Duterte alliance, according to Rye.

“The differences are irreconcilable because they both represent a different vision of where the Philippines needs to go and how the Philippines needs to be governed,” Rye said.

Home turf survival

When Duterte filed his candidacy in Davao, he was met by a roaring crowd of supporters. “I want to serve you. Davao is better than yesterday,” he told reporters, implying its current progress was due to his past iron grip.

The midterm elections are not until May 2025 but politicking and campaigning in the Philippines starts punishingly early, and thousands of local posts are up for grabs across the country of just under 120 million people, from district councilors and mayors to lawmakers.

Cleve Arguelles, a political scientist and head of polling firm WR Numero, said the outcome could shape the political landscape for years to come.

In Davao, five members of the once-mighty Duterte clan are facing off with familiar rivals.

Along with Sebastian, who will be his father’s running mate, Rodrigo’s eldest son Paolo is seeking re-election to Congress and two of Paolo’s sons are running for other local seats. Political pundits are saying that at least one Duterte may make a bid for the presidency in 2028.

“The Dutertes are not just joining this race as regular players. This is a fight to the death. This is for their political survival,” Arguelles said.

The Dutertes’ biggest challenger in Davao is the Nograles clan, reigniting a decades-old family rivalry.

The late Prospero Nograles remains the only person from Mindanao to have served as the nation’s House speaker. Though he only held the role for two years until 2010, the patriarch of the Nograles family built formidable ties with influential lawmakers and entrenched political elites across a decades-long career in local and national politics.

Now, the next generation of Nograles politicians is running against the Dutertes in their shared hometown.

Karlo Nograles is running against Rodrigo Duterte for the mayoralty while his sister, Margarita, a lawyer and rising TikTok influencer, is challenging Paolo.

Karlo Nograles has said people in Davao “deserve a chance to have real, meaningful and lasting change” – a message that could sway a portion of voters, Arguelles said.

“If the Dutertes lose the ballot in their home turf, it’s a sign that they have not been able to defend themselves from attacks on several fronts,” Arguelles said.

A lingering problem for the Dutertes is their relationship with Pastor Apollo Carreon Quiboloy, a self-styled “appointed son of God” and founder of the Kingdom of Jesus Christ church, who is wanted by the FBI for alleged sex trafficking.

Quiboloy is a close supporter and spiritual adviser of Rodrigo Duterte, who regularly appeared on a church-linked media network when he was mayor of Davao and was accused by lawmakers of concealing Quiboloy’s whereabouts.

The church leader was arrested in September after a weeks-long standoff involving nearly 2,000 officers who surrounded a sprawling church compound just outside Davao International Airport – a massive operation for which Marcos took credit.

Despite all the controversies and alleged links to extrajudicial killings and suspected criminals, Duterte has told Davao voters that a vote for him is a vote for order.

This post appeared first on cnn.com

Eight people were killed and 17 others injured in a stabbing attack on a college campus in eastern China on Saturday, police said — the latest in a recent spate of attacks that has shaken a nation long used to low rates of violent crime.

The attack took place around 6:30 p.m at the Wuxi Vocational Institute of Arts and Technology in the city of Yixing, according to a police statement. A suspect was detained at the scene, it said.

The statement said the suspect was a recent graduate who was motivated by “failing (an) exam, not receiving a graduation certificate, and dissatisfaction with internship compensation.” An investigation is ongoing.

The attack is the latest mass casualty incident to hit China — a country of 1.4 billion that has one of the lowest rates of violent crime in the world, partly due to its strict gun controls and powerful mass surveillance.

Last Monday, 35 people were killed after a car plowed into people who were exercising in the southern city of Zhuhai in the country’s deadliest known attack on the public in a decade. Around 40 others were injured.

As news of that attack spread, censors swooped in to take down online videos of the attack and moderate social media discussions

In October, police arrested a 50-year-old man after a stabbing attack near an elementary school in Beijing injured five people, including three children.

In September, three people were killed and 15 others injured in a knife attack at a suburban supermarket in Shanghai.

Also in September, a bus crashed into a crowd of students and parents outside a school in Tai’an city in Shandong province, killing 11 people and injuring 13 others. Chinese authorities did not reveal whether that incident was accidental or deliberate.

This story has been updated with additional infomation.

This post appeared first on cnn.com

The wreck of a US warship sunk in a World War II battle dubbed one of the bravest ever stands by a US Navy vessel has been found in the depths of the Pacific, US and Australian officials announced Monday.

Known as the “dancing mouse” due to its slippery movements in that final, fatal fight with the Imperial Japanese Navy, the destroyer USS Edsall went down off the coast of Australia in 1942, under the command of Lt. Joshua Nix.

“Joshua Nix and his crew fought valiantly, evading 1,400 shells from Japanese battleships and cruisers before being attacked by 26 carrier dive bombers, taking only one fatal hit,” US Ambassador to Australia Caroline Kennedy said Monday in announcing the find of the Edsall’s wreck.

Speaking alongside Kennedy, Australia’s chief of navy, Vice Adm. Mark Hammond, said the wreck was found with the help of advanced hydrographic survey capabilities aboard naval support ship MV Stoker.

Hammond also praised the Edsall crew for fighting a string of battles to help protect Australia during the early days of World War II before the vessel sunk on March 1, 1942.

On that day, a Japanese carrier-based plane spotted the US destroyer around 200 miles south-southeast of Christmas Island, according to an account of the Edsall’s final battle on the website of the US Naval History and Heritage Command (NHHC).

Japanese Vice Adm. Chuichi Nagumo was reportedly “incensed” that the US warship was spotted within 16 miles of his forces and ordered them immediately to intercept, according to the NHHC account by director Samuel Cox.

The old US destroyer – Edsall was commissioned in 1920 – and its 4-inch guns would prove to be no match for the newer Japanese fleet with bigger guns and dozens of aircraft carrying 500-pound bombs.

“Nix’s position was hopeless from the moment Edsall was sighted,” Cox wrote.

But the captain of the US destroyer didn’t give up.

“As a last gesture of defiance, like the famous cartoon of the little mouse flipping the bird at a huge screaming eagle, Lieutenant Nix chose to make a fight of it,” Cox wrote.

He had the destroyer lay a smokescreen, execute course changes and change speeds to evade the Japanese shells while launching torpedoes that narrowly missed one Japanese warship.

After seeing Edsall evade more than a thousand 14-inch and 8-inch shells, Japanese commanders ordered dozens of dive bombers from their three aircraft carriers to strike, according to Cox’s account, which he wrote was derived from Japanese sources.

At least one hit Edsall, and the ship began to lose its ability to maneuver.

“With fires raging and the ship settling and losing way, Lieutenant Nix pointed the bow of Edsall at the Japanese surface ships in his last act of defiance” and ordered ship abandoned, Cox wrote.

The Japanese warships then turned their big guns on the disabled destroyer, finally sinking it.

But Nix’s maneuvers drew the respect of Japanese witnesses, Cox wrote.

“According to a Japanese observer, Edsall performed like a ‘Japanese dancing mouse’ (a popular domesticated pet in Japan, also known as ‘waltzing mice’ or ‘whirler’ for its manic and bizarre movements),” the US naval historian wrote.

‘Don’t give up the ship’

Following the announcement of the wreck’s discovery, officials were effusive in their praise of Nix.

“The commanding officer of Edsall lived up to the U.S. Navy tenet, ‘Don’t give up the ship,’ even when faced with overwhelming odds,” the US chief of naval operations, Adm. Lisa Franchetti, said in a statement Monday.

“The wreck of this ship is a hallowed site, serving as a marker for the 185 U.S. Navy personnel and 31 U.S. Army Air Force pilots aboard at the time, almost all of whom were lost when Edsall succumbed to her battle damage.”

While most of those aboard the Edsall died at sea that day, some were rescued from the water by the Japanese and taken prisoner.

After the war’s end, six decapitated bodies found in graves on Celebes Island (now Sulawesi, Indonesia) were identified as those of Edsall crew members. Five more bodies found in the graves were not identified but were believed to be those of US pilots who had been aboard the ship, according to Cox’s account.

He called the story of the Edsall “one of the most gallant and valorous actions in the history of the U.S. Navy.”

Historian and author Trent Hone cited Edsall’s ultimate battle as “the most courageous independent action by a US Navy surface ship in combat,” in a 2020 survey by the US Naval Institute’s Proceedings magazine.

Franchetti said Monday that the story of the Edsall, both in its defense of Australia in 1942 and in the cooperation shown by the two allies in finding the wreck this year, shows the strength of that trans-Pacific alliance.

The discovery highlighted the current AUKUS partnership, between the US, Australia and the United Kingdom, she said.

“A key component of AUKUS is the development of the most cutting-edge underwater technologies of the type that enabled the discovery of Edsall in the vastness of the Indian Ocean, something not possible just a few years ago,” Franchetti said.

That ability helps “ensure our collective capability to preserve the peace, respond in crisis, and win decisively in war, if called,” she added.

This post appeared first on cnn.com

Weight loss drugs such as Wegovy and Ozempic have been hailed worldwide as revolutionary for medicine. In the United Kingdom, the government is hoping they might also improve public finances, eyeing their use to help unemployed people re-enter the workforce and ultimately save money on health care.

“For many people, these weight-loss jabs will be life-changing, help them get back to work, and ease the demands on our NHS [National Health Service],” British Health Secretary Wes Streeting wrote recently in The Telegraph newspaper.

Streeting added that obesity is “placing significant burden on our health service,” costing the NHS £11 billion ($14 billion) annually and leading people to take an average of four more sick days each year, which hurts the economy.

To counter that, the government is funding a five-year trial of the weight loss drug Mounjaro, or tirzepatide, in conjunction with the drug manufacturer Eli Lilly, which will collect data on participants’ quality of life and changes to their employment status and sick day use.

But the proposals have sparked backlash from healthcare professionals, who say that new pharmaceutical treatments have resulted in massive demand that the country’s public health system can’t cope with.

Additional measures to prevent obesity in the first place are desperately needed, health experts say.

Fierce debate on obesity solutions

There’s no question about the issue of obesity in the UK – at least 29% of adults in England are obese, as are 15% of children between the ages of 2 and 15, according to the latest Health Survey for England, which used 2022 data.

Obesity is the second most common cause of preventable death in England, after smoking, according to government health data. It’s also a risk factor for type 2 diabetes, cardiovascular disease, dementia, liver disease and several cancers.

British Prime Minister Keir Starmer has said that his government needs to “think differently” about how to reduce pressure on the country’s national health care system, overburdened amid staffing shortages and funding pressures. Part of that new thinking is exploring weight loss drugs.

Yet obesity experts and healthcare professionals say that because the health system is already overloaded, drugs are hard to administer at scale and solutions need to go much deeper.

“The idea that this is the solution to obesity is a complete fantasy. We still need to prevent as many cases as possible,” said Alfred Slade, government affairs lead at the Obesity Health Alliance, a coalition of organizations that work together to reduce the condition across the UK.

The OHA has crunched the numbers on existing weight loss drugs like Wegovy, the brand name for the appetite suppressant semaglutide. The conclusion? It’s nearly impossible to make it widely available.

Currently, about 4.1 million people living with excess weight meet the criteria to get Wegovy through England’s national healthcare system. But fewer than 50,000 people per year will actually receive the treatment due to underfunding for NHS services and staffing levels, even with additional financing in the coming years, according to the alliance, citing NHS estimates.

To improve access, the government is also expanding the use of the drug Mounjaro, or tirzepatide, for obesity patients in addition to Type 2 diabetes patients. The health ministry claims that up to 250,000 people with the greatest need could receive it over the next three years.

The alliance says it’s not clear how the government will pay for the drugs, or how it plans to fund “wraparound support” that is essential alongside these prescriptions, such as dietary advice and physical activity support to ensure patients don’t lose muscle mass as well as fat.

The government trial studying links between weight loss drugs and employment is also raising alarm bells among healthcare experts, who argue that medical need should always be the driving factor behind prescriptions.

“Obesity management services should be available to all who could benefit but where prioritization has to be made, this must be done based on clinical need not the potential economic output of the patient,” wrote Jack Doughty, a senior policy officer at Diabetes UK, in a blog post.

The UK’s health ministry has been clear that the NHS will continue to treat people based on clinical need and not prioritize those who are unemployed.

Early prevention translates to ‘huge’ cost savings

A key issue with weight loss drugs is that they are “dealing with the symptom, not the cause” of obesity, according to Martin White, professor of population health research at the University of Cambridge. Experts argue you need to tackle both.

“It’s a whole population problem, not a small number of individuals,” White said. “We have to work out ways to change the context or the environment that is leading people to eat that many excess calories.”

One way is to implement stronger taxes on unhealthy products.

For example, the UK’s tax on sugary soft drinks has already resulted in manufacturers reducing the amount of sugar in sodas, and studies indicate that price increases are deterring some consumers. There are growing calls to tax food products with sugar and salt in a similar way.

Experts are also calling for stronger marketing regulations to prevent unhealthy foods from being advertised to children. In October 2025, a watershed law that prevents junk food advertising before 9 p.m. on TV, streaming services and online will come into force in the UK.

Another policy solution is to require healthier food to be served in public-sector facilities, like schools, hospitals and prisons. White said that kind of intervention could also be applied to the private sector, if offices and corporate caterers are required to serve healthier food.

In schools, experts say there are also problems with implementing the existing regulations for healthy food, which is another area that could benefit from more oversight and investment. For example, one government report has called for more funding to widen access to free and nutritious school meals.

“Increasingly, what we’ve seen is that kids are starting to put on weight from a very early age,” White added. “But if you can prevent it really early, then the cost savings in terms of health care become huge.”

Of course, changing an entire food system is harder than prescribing a drug. But tackling an obesity problem that impacts roughly one-third of British adults will require multiple solutions, across all sectors of society.

“There is no such thing as a silver bullet for obesity,” the Obesity Health Alliance emphasized.

This post appeared first on cnn.com

DETROIT — General Motors laid off roughly 1,000 employees on Friday as the automaker attempts to cut costs and realign priorities amid changing market conditions, according to a person familiar with the decision.

The layoffs, which were announced Friday morning to those impacted, were across the business. Some were due to poor performance, while others were part of a review to reorganize priorities by the automaker, according to the person, who agreed to speak about the decision on the condition of anonymity.

A majority of the employees impacted were in suburban Detroit at the automaker’s global technical center in Warren, Michigan, the person said. A small number of hourly employees were included in the layoffs.

A spokesman for GM confirmed the layoffs but declined to disclose the total amount.

“In order to win in this competitive market, we need to optimize for speed and excellence,” GM spokesperson Kevin Kelly said in an emailed statement. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business. As part of this continuous effort, we’ve made a small number of team reductions. We are grateful to those who helped establish a strong foundation that positions GM to lead in the industry moving forward.” 

Friday’s layoffs follow more than 1,000 salaried employees working in GM’s software and services organization being let go in August.

GM’s global salaried workforce was 76,000 as of the end of last year. That included about 53,000 U.S. salaried employees.

The United Auto Workers union, which represents hourly employees at the automaker, did not immediately respond for comment.

This post appeared first on NBC NEWS

The Indian benchmark Nifty 50 extended its corrective decline. Over the past four sessions of a truncated week, the Nifty 50 index remained largely under selling pressure, and the markets continued with their process of mean-reversion. The volatility, though, did not show any major surge. The volatility gauge, IndiaVIX rose by a modest 2.11% to 14.77. The trading range over the past week stayed wider on the expected lines. The Nifty oscillated in a range of 852 points; it closed with a net weekly loss of (-615.50) points (-2.55%).

The coming week is truncated as well. Wednesday, November 20th is a trading holiday due to Assembly Elections in the state of Maharashtra. The markets are undergoing a painful mean-reversion process. As of now, though the Nifty has closed a notch below the 200-DMA, which is currently placed at 23555, it has managed to defend this important support. Beyond this, the Nifty is within striking distance of the 50-week MA, which presently stands at 23253. Even if the index ends up testing this level, the long-term primary uptrend would still stay intact. Two possibilities remain distinct. A relief rally in the form of a technical pullback cannot be ruled out, but, in the same breath, the markets remain weak and vulnerable to extended corrective pressure.

On Monday, the Nifty will adjust to the global market setup, as it will open after a gap of one day.  The levels of 23650 and 23780 may act as potential resistance points. The supports come in at 23250 and 23000 levels.

The weekly RSI is 43.26; it has made a fresh 14-period low, which is bearish. It also remains neutral and does not show any divergence against the price. The weekly MACD is bearish and is still below its signal line. The widening Histogram shows accelerated momentum during the downtrend. A long black body occurred on the Candles; this showed the strength of the trend on the downside.

The pattern analysis shows that the Nifty has made a feeble attempt to defend its 200-DMA, though it has closed slightly below this important point. Any further downside may see the Index testing another important support level of 50-week MA, which is placed at 23253. Besides this, the index has taken support on an extended trendline, which also remains in close proximity to the 50-week MA.

All in all, the markets are trading with a weak undercurrent. A technical rebound and a relief rally cannot be ruled out; however, the markets are also vulnerable to sustained selling pressure, and a test of lower levels cannot be ruled out either. The market breadth remains weak, and this is concerning, as all technical rebounds may get sold if the breadth continues to remain weak. It is strongly recommended that all leveraged exposures must be curtailed. Any technical rebound, as and when it occurs, should not be chased, and all gains must be mindfully protected. A highly cautious approach is advised for the coming week.


Sector Analysis for the Coming Week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) show a largely unchanged sectoral setup. Nifty Services Sector, Pharma, Financial Services, and IT sector indices are inside the leading quadrant. They are likely to continue to relatively outperform the broader markets.

The Nifty Consumption, Midcap 100, and FMCG indices are inside the weakening quadrant. These sectors are expected to continue giving up on their relative performance over the coming weeks.

The Realty, Infrastructure, PSE, Media, Auto, Commodities, and Energy indices are inside the lagging quadrant. Among these, Commodities, Energy, Realty, and Infrastructure Indices are seen improving their relative momentum against the Nifty 500 index.

The Banknifty, PSU Bank, and Nifty Metal Indices are inside the improving quadrant. A gradual betterment in their relative performance can be expected over the coming weeks.


Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

As the cybersecurity landscape continues to evolve with increasing digital threats, Zscaler, Inc. (ZS) stands out as a new opportunity after lagging for most of 2024. Recent chart setups in Zscaler stock suggest ZS may be gearing up for a significant bullish trend.

In this analysis, we will break down the bullish signals and Zscaler’s financials, and then outline an optimal options strategy you can apply to capitalize on this opportunity—all identified instantly using the OptionsPlay Strategy Center within StockCharts.com. We’ve included a video illustrating this tool at the end of this article, which will help you get a better idea of how you can apply it to your options trading.

FIGURE 1. DAILY CHART OF ZSCALER. The stock price has broken out above a significant resistance level, and its performance relative to the S&P 500 is improving.Chart source: StockCharts.com. For educational purposes.

Looking at the daily chart of ZS, there are several bullish factors:

  • Breakout Above Major Resistance. After trading below $200 since March, ZScaler’s stock price has recently completed a bottoming formation and broke out above this critical resistance level. The prolonged consolidation period below $200 formed a solid base, indicating that selling pressure has subsided with buyers gaining control.
  • Market Outperformance. Relative to the S&P 500 ($SPX), ZS’s performance has been improving, suggesting relative strength and increased investor interest in the stock.

These technical factors collectively point towards a potential continuation higher after breaking out above this key $200 resistance level.

Beyond the technicals, Zscaler’s fundamentals further strengthen the bullish thesis:

  • Robust Revenue Growth. Zscaler reported a 30% year-over-year increase in revenue, reaching $593 million.
  • Impressive Billings Increase. The company achieved a 27% growth in billings, totaling $911 million.
  • Expanding Customer Base. Zscaler now serves 567 customers with over $1 million in annual recurring revenue (ARR)—a 26% increase—and 3,100 customers with over $100,000 in ARR, marking a 19% growth.
  • High Gross Margin. Maintaining a non-GAAP gross margin of 81% for fiscal year 2024 showcases the company’s operational efficiency and profitability.
  • Strong Free Cash Flow. With a free cash flow margin of 27%, Zscaler demonstrates robust cash generation capabilities, providing financial flexibility for future investments and growth initiatives.

Zscaler’s strong financial performance highlights its potential for continued growth. The company’s focus on innovation and the expansion of its Zero Trust Exchange platform positions it well to capitalize on the increasing demand for cloud-based security solutions.

Options Strategy

To leverage this bullish outlook on ZS, the OptionsPlay Strategy Center suggests selling the Dec 27 $205/190 Put Vertical @ $5.60 Credit.

  • Sell. December 27 $205 Put Option at $12.15
  • Buy. December 27 $190 Put Option at $6.60

This strategy involves selling a higher strike put and buying a lower strike put, resulting in a net credit of $5.60 per share, or $560 per contract. The trade profits if ZS stays above $199.40 by the December 27, 2024 expiration date, with a 56.92% probability of success.

FIGURE 2. PUT VERTICAL RISK GRAPH. Here, you see the max reward, max risk, and other details of the trade.Image source: StockCharts.com. For educational purposes.

Trade Details:

  • Maximum Potential Reward. $560 (the net credit received)
  • Maximum Potential Risk. $1,880 (difference in strike prices multiplied by 100 shares per contract, minus the net credit)
  • Breakeven Point. $199.40 (strike price of the sold put minus the net credit per share)

This strategy benefits from time decay and allows for profit even if the stock remains stagnant or rises moderately. It provides a favorable risk-to-reward ratio while aligning with the bullish outlook on ZS.

Real-Time Trade Ideas With OptionsPlay Strategy Center

This bullish opportunity in Zscaler was identified using the OptionsPlay Strategy Center within StockCharts.com. The platform automatically scanned the market, highlighted ZS as a strong candidate for a continuation higher, and structured the optimal options trade in real-time.

FIGURE 3. APPLYING THE OPTIONSPLAY STRATEGY CENTER. ZS was identified as a stock that has potential for a continued move higher. Click the arrow to the left of the stock symbol to view the trade details.Image source: StockCharts.com. For educational purposes.

By subscribing to the OptionsPlay Strategy Center, you can access:

  • Automated Market Scanning. Effortlessly discover the best trading opportunities based on comprehensive technical and options strategies in real time.
  • Optimal Trade Structuring. Receive tailored options strategies that align with your market outlook and risk tolerance.
  • Time-Saving Insights. Save hours of research with actionable trade ideas delivered in real time, allowing you to make informed decisions swiftly.

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There’s no denying the strength that the mega-cap growth names have exerted on the equity markets in 2024. With their outsized weight in the major equity averages, and their strong performance into November 2024, the Magnificent 7 stocks in many ways reflect the investor optimism that has been much of the story of this bull market. But with these leading growth names rotating lower this week, pushing the Nasdaq 100 down 3.4% and the S&P 500 down 2.1% through Friday’s close, we need to reconsider the sustainability of the uptrend phase through year-end 2024.

To examine more effectively, we can easily group the eight stocks, which I call the “Magnificent 7 and Friends”, into three distinct buckets. Let’s review the technical configurations for these stocks, and focus on what levels could help us confirm a new market trend.

The Breakout Names, Featuring NVDA

Three of these eight leading growth names have already broken to a new all-time high in Q4, and, while Netflix, Inc. (NFLX) and Amazon.com, Inc. (AMZN) both deserve our attention, I think the chart of NVIDIA Corp. (NVDA) perhaps best illustrates what we’re seeing with these top performers.

These three are in confirmed uptrends, as defined by Charles Dow’s original definition of higher highs and higher lows. So the analysis here is simple: as long as that uptrend persists, the charts are in good shape. For NVDA, that means a “line in the sand” around $132, which lines up with late October swing low as well as the 50-day moving average.

During an uptrend phase, stocks will often pull back to an ascending 50-day or 10-week moving average. So, if charts like Nvidia are able to hold this key short-term trend barometer, then the uptrend remains in place. However, if these first three stocks fail to hold expected support, that could provide a key market tell as the “generals” would show signs of weakness.

The Consolidating Charts, Featuring AAPL

Three of the eight charts on this list are testing short-term resistance levels, with Meta Platforms, Inc. (META) testing the $600 level as a prime example. But we’ll focus today on Apple, Inc. (AAPL), which has spent the last four months failing to breakout above its July high around $237.

Quite simply, the chart of AAPL is at best “neutral” until and unless it can demonstrate a confirmed break above the July peak. On top of that, we can see the RSI has failed to push above the 60 level on short-term rallies. In fact, with the RSI basically rangebound between 40 and 60, this stock represents an absence of momentum and an equilibrium of buyers and sellers.

For charts like these, I’m reminded of Jesse Livermore’s famous quote, “There is time to go long, time to go short, and time to go fishing.” When the chart is not providing a clear signal to the upside or downside, it’s usually best to find opportunities elsewhere. But if three of these stocks are failing to break to new highs, that suggests limited upside for the S&P 500 and Nasdaq 100.

The Wild Cards, Featuring MSFT

Now the final two charts are sort of in an “other” bucket, with Tesla Inc. (TSLA) a notable outlier with its exceptionally strong upside rally post-elections, and then an equally dramatic decline over the last week. But I think Microsoft Corp. (MSFT) provides a more compelling technical configuration, given that it’s one of the only growth names on this list that is actively testing price support.

If you connect a trendline from the July peak to the September high, you’ll see that MSFT had a failed breakout above that trendline in late October, and then again earlier this week. In bullish market phases, charts like this usually follow through on breakouts. But when clear technical breakouts don’t see enough follow-through, that can often be an indication of a wider risk aversion and lack of willing buyers.

With Microsoft in particular, it’s all about the $406 level, which represents a 38.2% retracement of the 2023-24 uptrend phase. There have been numerous tests of this support level over the last three months, and a break below this level could indicate a larger theme of distribution in the equity markets. Bear phases are always marked by stocks being unable to hold key price support!

For a deeper dive into these three charts, along with the rest of the Magnificent 7 and Friends, head on over to my YouTube channel!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

(This is an excerpt from the subscriber-only DP Weekly Wrap for Friday)

On Friday, the Biotechnology ETF (IBB) 20-day EMA crossed down through the 50-day EMA (Dark Cross) and above the 200-day EMA, generating an IT Trend Model NEUTRAL Signal. IBB recently switched to a BUY Signal on Friday November 8, and we said at the time, “IBB is approaching the top of a four-month trading range (resistance), so this BUY Signal doesn’t look very juicy at this time.” This emphasizes why we consider Trend Model signals to be information flags, not action commands. Always check the chart.

Part of the reason Biotechs fell apart was the nomination of Robert F. Kennedy Jr. to the Health and Human Services department. He is known to be anti-COVID vaccines and just generally not a fan of chemicals for the body. This doesn’t necessarily bode well for this industry.

Participation has been plummeting as more and more stocks lose support at key moving averages. This drop below the 200-day EMA is perilous and, given the negative indicators, the decline isn’t likely over yet. The PMO is dropping below the zero line on a Crossover SELL Signal and Stochastics are below 20, signaling extreme weakness. Support is arriving around 130.00, but it doesn’t look good.

The weekly chart shows the breakdown from the rising wedge formation, which is the normal resolution from this formation. The weekly PMO is tumbling lower. Support on the weekly chart is around 123.00. That would be a painful decline added to this already deep decline.


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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


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Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


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Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


“The economy is not sending any signals that we need to be in a hurry to lower rates.” These words from Chairman Powell impacted the stock market much more than this week’s inflation data.

The stock market started selling off on Thursday afternoon and continued to do so Friday, with the broader stock market indexes closing lower. The Dow Jones Industrial Average ($INDU) closed down by 0.70%, the S&P 500 lower by 1.32%, and the Nasdaq Composite ($COMPQ) lower by 2.2%.

It’s also options expiration Friday, which generally means increased volatility. The Cboe Volatility Index ($VIX) gained 12.79% on Friday, closing at 16.14. That’s a big jump from earlier in the week.

Nasdaq’s Fierce Selloff

The Nasdaq experienced the biggest drop of the three indexes. The chip makers got smoked. Applied Materials (AMAT), the largest US chipmaker, was down 8.76% on a disappointing revenue forecast. Nvidia (NVDA) was down over 3%, Micron Technology (MU) was down almost 3%, and Intel (INTC) fell 1.70%.

The daily chart of the VanEck Vectors Semiconductor ETF (SMH) gives a clear picture of the semiconductor industry.

FIGURE 1. DAILY CHART OF THE VANECK VECTORS SEMICONDUCTOR ETF (SMH). The sharp selloff in semiconductor stocks resulted in a technical weakness in the chart of SMH. It’s close to a support level, while its SCTR score, MACD, and relative strength with respect to the S&P 500 weaken.Chart source: StockChartsACP. For educational purposes.

Although SMH is still within the sideways range (grey rectangle), it’s very close to the bottom of the range, which aligns with the 200-day simple moving average (SMA). The StockCharts Technical Rank (SCTR) score is at a low 29, the moving average convergence/divergence (MACD) indicates a lack of momentum, and SMH is not outperforming the S&P 500 like it once did.

Looks like investors are rotating away from semiconductors, either taking profits or investing in other asset classes — but which ones? It’s certainly not healthcare stocks, which also got pounded on Friday. Perhaps cryptocurrencies. However, there’s more brewing beneath the surface.

The Yield Rally

The economy is still strong—retail sales data shows that consumers continue to spend, which is pushing Treasury yields higher. The 10-year US Treasury Yield Index ($TNX) closed at 4.43% (see daily chart below). TNX has been trending higher since mid-September and since the end of September has been trading above its 20-day SMA.

FIGURE 2. DAILY CHART OF THE 10-YEAR US TREASURY YIELD. Treasury yields have been on a relentless yield since September. A stronger US economy would keep yields higher.Chart source: StockChartsACP. For educational purposes.

Fed Chairman Powell and Boston Fed President Susan Collins’ comments lowered the probability of a 25-basis-point interest rate cut in the December FOMC meeting. According to the CME FedWatch Tool, the probability is now 58.2%. It was close to 70% on Thursday, before Powell’s speech.

The relentless yield rally may have been one reason the Tech sector sold off. Higher yields don’t benefit growth stocks.

Dollar’s Roaring Rally

One asset class that is gaining ground is the US dollar. When the words “Dollar sets 52-week high” appear in my predefined alerts dashboard panel, it’s something to analyze. The US dollar ($USD) has been in a relatively steep rally since October (see chart below). With a strong US economy and the Fed indicating a more neutral stance in their policy decisions, the dollar could continue to strengthen.

FIGURE 3. DAILY CHART OF THE US DOLLAR. The dollar has been in a roaring rally since October. A strong US economy supports a strong dollar.Chart source: StockChartsACP. For educational purposes.

At the Close

With the exception of the Dow, the other broader indexes have fallen to the lows of November 6, the day after the US presidential election. The broad-based selloff could continue into early next week. There’s not much economic data for next week, but Nvidia will announce earnings after the close on Wednesday. That should shake up the chip stocks.

If you have cash on the sidelines, there could be some “buy the dip” opportunities. However, because there are some dynamics between stocks, yields, and the US dollar, the three charts should be monitored to identify signs of a reversal. When you’re confident of a reversal, jump on board.


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End-of-Week Wrap-Up

  • S&P 500 down 2.08% for the week, at 5870.62, Dow Jones Industrial Average down 1.24% for the week at 43,444.99; Nasdaq Composite down 3.15% for the week at 18,680.12
  • $VIX up 8.03%% for the week, closing at 16.14
  • Best performing sector for the week: Financials
  • Worst performing sector for the week: Health Care
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Palantir Technologies (PLTR); Summit Therapeutics (SMMT); MicroStrategy Inc. (MSTR); Redditt Inc. (RDDT)

On the Radar Next Week

  • October Housing Starts
  • November Michigan Consumer Sentiment
  • Fed speeches
  • Nvidia earnings

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.