Market News
- Nasdaq was lower by 91 points last Friday after its attempt to crack down on IPOs of small Chinese companies to limit stock market flotations as a growing number of them end up raising most of the capital in their IPO from Chinese sources, rather than from U.S. investors. Dow Jones fell 70 points and S&P 500 declined 15 points.
- On the trade front, Trump administration is considering radical new financial pressure tactics on China, including the possibility of delisting Chinese companies from U.S. stock exchanges in order to limit American investment in Chinese companies.
- U.S. data on Friday showed consumer spending barely rose in August and business investment remained weak, suggesting the American economy was losing momentum as the trade dispute drags on.
Market Views
- Asia Pacific shares were mixed on Monday morning as investors looked to how Chinese financial markets will react to the news the U.S. administration is considering delisting Chinese companies from U.S. stock exchanges. Hang Seng index rose 31 points while Nikkei 225 index fell 98 points.
- Chinese manufacturing activity for September came in above expectations, which showed the Chinese economy is going through both a structural and a cyclical slowdown, particularly in the manufacturing sector which is being hit by various headwinds such as the tightening of domestic financing conditions back in 2017/2018.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,926
Target price:
Protective stop:
Outlook
Price has been moving within a Flag pattern with 20EMA acting as support which has halted the price decline for the past five days. A move below 26,680 could lead to a test of 26,520, which is the Fibonacci 38% retracement point and the resistance-turned-support level. However, a move above 27,020 would validate the Flag breakout for a test to its high. Stochastic has turned down from the overbought extreme but MACD is still bullish at the moment.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,040
Target price:
Protective stop:
Outlook
The price decline that last for ten consecutive days could have ended as there is a sign of rebound, the one white soldier candlestick pattern, formed near the key Fibonacci 62% retracement point. Price could be on the way testing the 20EMA at 26,350, which is near to its Fibonacci 38% retracement at 26,410, if price could maintain its base at 25,770. Stochastic has turned down and is near to the oversold region. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7742
Target price :
Protective stop:
Outlook
A price decline four nights ago has brought price to break below 7780 breakout level and 20EMA. Price is now in a correction and the 20EMA is acting as resistance to the price rally. A move below 7640 would target for 7500. Stochastic has turned down from the overbought extreme but MACD is still bullish at the moment with both lines above the zero line.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend : Short term bearish
Recommendation : Short sell
Last : 21,791
Target price: 21,350
Protective stop : 22,000
Outlook
Price broke below the key resistance-turned-support level at 21,831 last Friday with the evening star candlestick pattern. Price is now trading at the 20EMA which is providing support for the price decline. A move below 20EMA at 21,680 could be a hint for sharper correction and would target 21,360 which is the Fibonacci 38% retracement point. Stochastic is turning down but MACD is still bullish at the moment.
Trading Idea
Sell 21,780 for 21,350 with a stop above 22,000 was triggered on Friday.
