Market News
- Stocks rose slightly on Monday as Wall Street kicked off a big week of earnings. The moves also come as an expectation of aggressive policy easing from Fed was dampened by Boston’s Fed President Rosengren who said “the US economy doesn’t require stimulus”. Dow Jones rose slightly to close 17 points higher, S&P 500 rose 8 points and Nasdaq Composite was up 57 points.
- Amid the ongoing earnings season, more than 15% of the S&P 500 companies have reported earnings this week. Of those companies, 78.5% have topped analyst expectations for earnings while 67% have reported better-than-expected quarterly revenues.
- On the trade war front side, Trump agreed to requests for “timely licensing decisions ” from the Department of Commerce regarding Chinese tech giant Huawei, which relies on American suppliers for components and software in some of its products. Huawei remains on a Washington trade blacklist.
Market Views
- Asia Pacific stocks edged up on Tuesday following overnight gains on Wall Street as the earnings season rolls on. Nikkei rose 201 points while Hang Seng was up 49 points. HK press had reported US trade negotiators are likely to visit China next week for face to face talk.
- U.K. is set to find out who its next prime minister will be as it moves closer to the Brexit departure deadline of October 31. Investors are worried the new prime minister could pull Britain out of the European Union without a trade deal in place in order to appease members of his Conservative Party
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,227
Target price:
Protective stop:
Outlook
Price is now sitting on the uptrend line after a tweezer top was formed last Tuesday. A breach of this trendline could see the index dropping lower to 20EMA support at 26,900 or to price support at 26,430-26,460. This is also near to the Fibonacci 62% support. Stochastic is crossing down from the overbought region and there is a bearish MACD crossover, which is giving concern.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,450
Target price:
Protective stop:
Outlook
Price has closed the gap support formed on Friday with a bearish red candlestick yesterday. Price is now sitting at the 20EMA, which is also near the triangle trendline support. A close below the 20EMA could see the index dropping back to the lower trendline or the gap support at 28,020. The Stochastic is turning down but the MACD is still bullish at the moment. However both momentum indicators are not strong at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7917
Target price :
Protective stop:
Outlook
Price tested the 20EMA again last night. Price is currently sitting on the 20EMA support. The MACD divergence warning is giving concern even though MACD is still bullish. Price could be heading towards the lower downtrend line should price fail to hold at the 20EMA. Stochastic has turned down from the overbought region and is falling.
Trading Idea
Wait for new trading idea and opportunities.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6776
Target price:
Protective stop :
Outlook
Price broke above the continuation wedge pattern last Friday. The 20EMA is still bullish and is rising. We could see a price rally towards its previous high at 6823. A move above 6823 would see price moving higher to test 6863. The Stochastic has turned up and is rising. The MACD is still bullish at the moment and we could see a bullish crossover in the coming session.
Trading Idea
Wait for new trading idea and opportunities.
