Tick Insights

Market News

• Wall Street’s major stock indexes closed lower on Tuesday, with a 1% drop in the technology-heavy Nasdaq leading losses as chip stocks tumbled on demand concerns while the energy sector fell 3% as oil prices dropped.
  
• Nasdaq came under particular pressure from market heavyweight Nvidia, the leading chip maker for artificial intelligence. Nvidia shares fell 4.7% after scoring a record-high close on Monday and after a media report that the Biden administration is considering capping AI chip exports by U.S. companies.
  
• China’s housing minister is expected to host a press briefing on Thursday to discuss “steady and healthy development of the real estate market,” according to CNBC’s translation of the Chinese statement from State Council Information Office.

Market Views

• Asian stocks were mixed on Wednesday, as technology shares, particularly chipmakers, were battered by a weak outlook from industry bellwether ASML. Hang Seng index advanced 105 points while Nikkei 225 index dropped 714 points.
  
• While optimism over more stimulus in China, especially fiscal measures, had initially boosted local stocks, they swiftly unwound this rally as Beijing failed to provide clear details on the timing and scale of the planned measures.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 42,720

Target price:

Protective stop:

Outlook
Price could have formed a possible head and shoulder reversal chart pattern. Let’s wait for a retest on the neckline to confirm this pattern and we will see price moving lower to 42,400. Stochastic is falling and MACD has turned bearish.

Trading Idea
Sell now for 42,450 with a stop above 42,780

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 20,295

Target price:

Protective stop:

Outlook
Price has formed a price top at 23,458. The 20EMA is falling and is acting as resistance. Stochastic is falling and MACD has turned bearish. We are likely to see price breaking its support to move lower.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 20,199

Target price:

Protective stop:

Outlook
Price rebounded from its resistance-turned-support level. The 20EMA is falling, hinting at more downside ahead. Stochastic is falling and MACD has turned bearish. We could see price violating this support zone to move lower.

Trading Idea
Wait for better trading idea

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 19,461

Target price:

Protective stop:

Outlook
Price has formed a price top on 15 Oct. It is going to test the 20EMA support. Stochastic is falling while MACD remains bullish. We could see price violating 19,440 to move lower to 19,320.

Trading Idea
Sell 19,480 for 19,320 with a stop above 19,560

Market News

• Wall Street’s main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates.
  
• The closely watched Consumer Price Index rose 0.2% on a monthly basis in September and 2.4% on an annual basis. In a separate report released on Thursday, jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.
  
• Atlanta Federal Reserve Bank President Raphael Bostic on Thursday said he would be “totally comfortable” skipping an interest-rate cut at an upcoming meeting of the U.S. central bank, adding that the “choppiness” in recent data on inflation and employment may warrant leaving rates on hold in November.

Market Views

• Asian stocks were higher on Friday, with Chinese markets sinking in anticipation of more cues on fiscal stimulus, while South Korean shares rose after the Bank of Korea cut interest rates. Hang Seng index advanced 614 points and Nikkei 225 index gained 221 points.
  
• China’s finance ministry is set to hold a briefing on Saturday, where it will outline fiscal support for the economy. The briefing was announced after investors largely balked at Beijing’s latest round of monetary stimulus, and called for more targeted, fiscal measures.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 42,080

Last: 42,443

Target price: 41,580

Protective stop: 42,200

Outlook
Price rebounded from its previous low support zone. As long as it stay above 42,370, we could see price forming a new high. Stochastic and MACD are bullish.

Trading Idea
Sell 42,080 for 41,580 with a stop above 42,200. Entry was filled on 8 Oct. Stop was triggered on 9 Oct

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 21,231

Target price:

Protective stop:

Outlook
Price has formed a price high at 23,458. It is currently capped by the falling 20EMA, coinciding with the support-turned-resistance level. MACD has turned bearish. We are likely to see price continuing to move lower.

Trading Idea
Sell 22,200 for 20,330 with a stop above 22,530

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 20,236

Target price:

Protective stop:

Outlook
Price has tested its previous price high resistance zone for a second time. It has to close above this high for more upside ahead. Stochastic and MACD remains bullish. We could see price breaking above this resistance for more upside.

Trading Idea
Wait for better trading idea

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 19,217

Target price:

Protective stop:

Outlook
Price is currently moving along with the rising 20EMA, keeping the bullish price trend intact. Stochastic is rising and MACD remains bullish. We could see price continuing to move higher to its previous price high.

Trading Idea
Buy 19,130 for 19,440 with a stop below 19,000

Market News

• Wall Street’s benchmarks finished up on Tuesday, recouping some of the previous session’s losses, as investors bought back in to technology stocks and investors shifted their focus to upcoming inflation data and the start of third-quarter earnings season.
  
• The easing of Treasury yields on Tuesday meant investors were drawn to high-growth stocks, which benefit from lower debt costs to fuel their growth, such as technology companies. Traders have now priced in a nearly 89% chance of a 25 basis-point interest rate cut in November.
  
• Oil prices surged 13% through Monday’s close since Iran launched about 180 ballistic missiles at Israel last week. Iran’s attack had raised fears that Israel might retaliate by hitting the country’s oil industry. President Joe Biden, however, has publicly discouraged Israel from taking this course.

Market Views

• Asian stocks rose on Wednesday with technology shares tracking gains in their U.S. peers, while Chinese markets fell sharply as investors were disappointed by a lack of details on more stimulus measures. Hang Seng index fell 260 points while Nikkei 225 index rose 263 points.
  
• China stocks rally fizzled out by the end of Tuesday, especially as China’s top economic regulator gave scant cues on how the new stimulus measures- which include proposed rate cuts, lower reserve requirements and more liquidity support- will be implemented.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 42,080

Last: 42,041

Target price: 41,580

Protective stop: 42,200

Outlook
This index was capped by its falling 20EMA which is acting as resistance at the moment. MACD remains bearish. Stochastic is weak and a bearish Stochastic crossover is likely. We are likely to see price continuing to move lower.

Trading Idea
Sell 42,080 for 41,580 with a stop above 42,200. Entry was filled on 8 Oct.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation: Long @ 21,460

Last: 20,597

Target price: 22,650 filled

Protective stop: 21,910

Outlook
A bearish engulfing candlestick pattern was formed on 8 Oct. The 20EMA is falling, hinting at more downside ahead. Stochastic is falling and MACD has turned bearish.

Trading Idea
Buy 21,460 for 22,650 with a stop below 21,000. Entry was filled on 3 Oct. Shift stop higher to 21,910. Target was filled on 4 Oct

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 19,850

Last: 20,045

Target price: 19,350

Protective stop: 19,930 triggered

Outlook
Price was capped by its previous price high resistance zone. It has to penetrate above 20,110 for more upside, else, we could see price falling to 19,680. MACD remains bullish.

Trading Idea
Sell 19,850 for 19,350 with a stop above 19,930. Entry and stop were triggered on 4 Oct

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 19,056

Target price:

Protective stop:

Outlook
Price is currently moving within a sideway consolidation zone between 18,910 and 19,120. It has moved below the falling 20EMA. We are likely to see price moving lower to 18,910.

Trading Idea
Wait for better trading idea