Market News
- Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government’s next round of coronavirus aid kept economic worries on the radar.
- Apple provided the biggest gains, surging 10.5% to close at a record $425.04 in the wake of blowout quarterly results and a four-for-one stock split announcement. Its gains pushed it ahead of Saudi Aramco as the world’s most valuable public company.
- Trump said on Friday he would sign an executive order as soon as Saturday to ban TikTok in the United States, ratcheting up the pressure on the popular short-video app’s Chinese owner to sell it to potential buyers such as Microsoft and Facebook.
Market Views
- Asian markets were mixed on Monday morning as U.S. lawmakers struggled to hammer out a new stimulus plan amid a global surge of new coronavirus cases globally. Nikkei 225 index surged 413 points while Hang Seng index fell 201 points.
- The 10-year real rate has broken below -1% for the first time amid a marked flattening of the yield curve as investors wager on yet more accommodation from the Fed, resulting the U.S. dollar suffered its worst monthly drubbing in a decade in July, though it was attempting a rally on Monday as bears took profits on crowded short positions.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,365
Target price:
Protective stop:
Outlook
This index is still moving within a triangle pattern that started since 20 June. The 20EMA is currently flat, confirming the sideways movement as well. Price is likely to move towards its lower boundary of triangle support at 25,910. It could consolidate until a breakout of either side occurs. Stochastic is heading lower at the moment. MACD is still bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 24,405
Target price: 24,180
Protective stop: 25,250 triggered
Outlook
This index has been declining after reaching a high of 26,818 on 7th July. It is likely to test the key Fibonacci 62% correction point of the rally that started from May to Jul 20 at 24,178. As long as this key support holds, there is chance for this index to rebound. A violation of this support would accelerate the downside towards 23,670. Stochastic is at the oversold region and could be turning up but MACD has turned bearish.
Trading Idea
Sell 24,950 with a stop above 25,250 for 24,180. Order was filled on 29 July. Stop was triggered on 30 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,942
Target price :
Protective stop:
Outlook
Price has been ranging between its all-time high resistance at 11,071 and the 20EMA support. We are likely to see price testing its all-time high again if it can stay above the 20EMA. It has to surpass 11,071 that capped the rally twice for further upside. The 20EMA is still rising at the moment, and it is providing support at 10,660. Stochastic is moving higher at the moment. MACD is still bullish and there is a bullish crossover
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 21,970
Target price:
Protective stop
Outlook
This index broke below the triangle pattern today with the 20EMA is now falling at the moment, which hints for more downside ahead. We could see price moving lower towards the gap support zone at 21,010. Stochastic is moving lower at the moment. MACD is still bullish but there was a bearish crossover, and the fast line is now moving below the zero line.
Trading Idea
Wait for better trading idea
