Market News
- Wall Street ended flat on Monday as increased expectations of stimulus from central banks around the world were offset by losses in Microsoft Corp, which was the biggest drag of the day in technology sector. Dow Jones was up 38 points but S&P 500 closed with little changed and Nasdaq Composite dropped 15 points.
- Market hopes for a breakthrough rose overnight as U.S. Treasury Secretary Steven Mnuchin, who told Fox television that there had been “a lot of progress” on a U.S.-China trade deal and that the U.S. side was “prepared to negotiate”. Trade talks between both countries are expected to continue in the coming weeks.
- Steven Mnuchin said he did not see the threat of a recession and he expected a positive year ahead for the U.S. economy. Fed is widely expected to cut interest rates next week as policymakers race to shield the global economy from risks, which also include Britain’s planned exit from the European Union.
Market Views
- Asian stocks were little moved in Tuesday morning following the release of Chinese inflation data that showed producer prices seeing their worst year-on year contraction in three years. Hang Seng index fell 25 points and Nikkei 225 index gained 39 points.
- Japan is seeking a final agreement with Washington for the trade talk that is due this month to avoid the tariffs imposed on their mainstay auto vehicles, but there is really no deal between the two countries yet as the negotiations have only just begun.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,819
Target price:
Protective stop:
Outlook
Since price moved and closed above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point with a bullish long green candlestick on Thursday night, price has been moving higher. We see the index heading up to test its high at 27,400 again. Stochastic is still rising at the moment. MACD has turned bullish with both its lines above the zero line. Both momentum indicators are hinting of further price rally.
Trading Idea
Wait for pullback to enter.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,698
Target price:
Protective stop:
Outlook
Price has consolidated for the past three days after breaking above the 20EMA that had consistently resisted price rally since August last Wednesday. Price is now near to Fibonacci 50% resistance point and if price cannot break through this level, we could see the index pullback and test the 20EMA at 26,270 again. A move above 27,000 would target for 27,490 which is the gap resistance and the Fibonacci 62% retracement point. Stochastic has turned up. MACD could turn bullish soon with its slow line close to the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7821
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 three nights ago and has been moving higher since. Price is likely to test its high at 8035 again as long as price stay above 7780. Stochastic has turned up again. MACD is bullish at the moment. Both momentum indicators are hinting of further price advance.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2976
Target price:
Protective stop :
Outlook
Price broke and closed above the consolidation zone high at 2940 three nights and this could mark the end of the consolidation phase. The 20EMA is also turning up. We could see the index testing its high at 3028 again. Stochastic and MACD have turned bullish. Both momentum indicators are hinting of further price upside
Trading Idea
Wait for better trading idea.
