- China will exempt US soybeans and pork from its next round of tariffs. This comes after US President Donald Trump responded with a conciliatory move of his own, agreeing to delay a planned tariff increase from October 1 until October 15, after China exempted more than a dozen products from tariffs on Thursday.
- Dow climbed to its eighth day of gains in a row on the news that China will exempt US soybeans and pork from its next round of tariffs. The Dow closed 34 points higher, logging its longest winning streak since May 2018. The S&P 500 index slipped 2 points while the Nasdaq Composite was down 17 points.
- Retail sales figures showed that consumer spending remains relatively healthy. Total retail sales were up 4.1% in the past 12 months. Despite a strong US data, investors are still betting the Federal Reserve will lower interest rates for the second straight time at its meeting on Wednesday.
Market Views
- Asian markets were lower in Monday afternoon trade, as oil prices surged following drone attacks over the weekend that hit major oil production facilities in Saudi Arabia. The Hang Seng index was down 273 point. Japan market is closed for a holiday today.
- The PBOC cuts its reserve requirement ratio by 50 basis points that went into effect today and it would further reduce that ratio by 100 basis points for some qualified banks. This cut in liquidity ratio is set to release 800 billion yuan ($113 billion) in liquidity into the economy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,051
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, price has been moving higher. Last Friday, price reached almost the previous all-time high. However, price gapped lower today and price is now likely to test the 20EMA support at 26,668. Price will need to move above 27,170 to be bullish again. Stochastic is still rising but could turn down in the coming session. MACD has turned bullish.
Trading Idea
Wait for pullback to enter.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,071
Target price:
Protective stop:
Outlook
The index has been trying to close the gap that formed on 2 August. Price is now near to Fibonacci 62% resistance point, which is also the upper gap resistance. This could be the end of the rally if price cannot break through this resistance and price could retrace to 20EMA at 26,520. This morning, price is starting to move below the 27,000 level which would mark a 3-day reversal. Stochastic is in the overbought region and could turn down but MACD has turned bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7817
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 on 5 Sep and has been moving higher since. However, a Shooting Star candlestick pattern was formed last Thursday night, raising concern that we could have reached a top. This has been followed by a long red candlestick today. A move below 7780 could see a correction to 7660. Stochastic could turn down in the coming session but MACD is bullish at the moment.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2988
Target price:
Protective stop :
Outlook
Price broke and closed above the consolidation zone high at 2940 on 5 Sep and has been moving higher since. The index reached a high at 3022 on Friday night, which is near to its previous all-time at 3028. We could see price pullback to 20EMA support and the breakout level at 2940-2950. Stochastic is at the overbought region and could turn down in the coming session. MACD have turned bullish.
Trading Idea
Wait for better trading idea.
