Market News
- U.S. stocks were lower after the close on Monday after disappointing bank earnings dented Wall Street, though recent signs the global economy is likely to avoid a sharper downturn helped limit the losses.
- Treasury Secretary Steven Mnuchin said Sunday the U.S. was willing to take a penalty if it did not comply with a China trade deal once the two countries reach one. However, Mnuchin said Monday the two sides had a lot of work left ahead of them.
- U.S and Japan kicked off trade talks on Monday. U.S. President Trump had made it clear he was unhappy with Japan’s $69 billion trade surplus with the U.S. and wanted a two-way agreement to address it. Japan Economy Minister Motegi told reporters that he had a frank and good exchange with Lighthizer on Monday. Talk will resume on Tuesday in Washington.
Market Views
- Asian market barometers are pushing above a nine-month peak on Tuesday. Nikkei is up 298 points while Hang Seng is up 42 points.
- The Asian indexes had risen to their highest levels since July 2018 after strong data from China eased investor concerns about the health of the global economy. Expectations that Chinese and U.S. trade negotiators would strike a deal soon also lifted confidence.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,422
Target price: 26,970
Protective stop:
Outlook
Price managed to stay above 20EMA support at 26,310 and should be pushing higher to the previous high at 26,497. A break above this high would target the record high at 26,970. MACD is bullish while Stochastic is correcting from overbought extreme. We are expecting price to push above 26,497 and test 26,970 in the next few days.
Trading Idea
Stay bullish for a test of 26,498 with stop below 26,240.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 30,018
Target price: 30,650
Protective stop: 29,668
Outlook
Price reached another new high at 30,350 on Monday and could be heading higher to the Fibonacci 161.8% target at 30,650. Price dipped to a low of 29,708 which left the bullish trend intact. The trend is still bullish and could be heading higher to 30,650. Both MACD and Stochastic are hinting the down move could be over and another rally to 30,350 could be on the way.
Trading Idea
Keep long for 30,650 with protective stop below 29,668.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7640
Target price: 7685
Protective stop: 7570
Outlook
Price just made a new high at 7641 and this continues the bullish trend which could bring price to 7685. This is the 127% Fibonacci projection of the previous rally. MACD is still bullish but flat at the moment. Stochastic is moving into oversold extreme. We could be moving to 7685 but we could be approaching market top soon and caution is advised
Trading Idea
Keep long for 7685 with protective stop below 7570
Nikkei 225 Index
(CFD Symbol: JP225)
Trend : Bullish
Recommendation :
Last : 22,253
Target price: 22,588
Protective stop :
Outlook
Price just made a new 2019 high of 22,263 and this continues the bullish trend which could bring price higher to the Fibonacci 261.8% projection point of 22,588. Stochastic is into overbought extreme but MACD is still bullish and rising. Both MACD and Stochastic has no divergence warnings as yet. 20EMA is bullish and rising as well.
Trading Idea
Keep long for 22,588 with stop at 21,460.
