Market News
- U.S. stocks ended down more than 1% on Tuesday after President Donald Trump said he was calling off negotiations with Democratic lawmakers on coronavirus relief legislation until after the election. Airline shares also tumbled, with United Airlines ending down 3.6% on the day.
- Cases of the virus are still on the rise across much of the country, and hopes that a stimulus deal was still possible had helped stocks to recoup recent losses sparked by the news that Trump had contracted COVID-19.
- U.S. President Donald Trump said late on Tuesday Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic.
Market Views
- Asian stocks were mixed on Wednesday morning, brushing off Wall Street’s weaker finish, which came after U.S. President Donald Trump abruptly broke off economic stimulus negotiations with lawmakers. Hang Seng index rose 106 points while Nikkei 225 index fell 38 points.
- U.S. hiring is slowing and on Tuesday U.S. Federal Reserve Chair Jerome Powell warned of the risks if authorities did too little to support the economic rebound. Powell said the domestic rebound could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 27,824
Target price: 27,950 filled
Protective stop: 27,000
Outlook
Price closed with a Bearish Engulfing candlestick pattern last night, but the 20EMA is acting as support at the moment. As long as this index can hold above the 20EMA at 27,690, there is chance for this index moving higher towards its previous high of 28,207. Stochastic is rising at the moment. MACD is still bearish but there is a bullish crossover.
Trading Idea
Buy 27,250 for 27,950 with a stop below 27,000. Order was filled on 2 Oct. Profit order was filled on 6 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,758
Target price:
Protective stop:
Outlook
Price penetrated the 20EMA resistance and is now going to test the support-turned-resistance zone at 24,246 as expected. This could be a strong resistance and price will need to surpass this resistance for further upside. A failure moves to penetrate above this resistance will likely to bring price lower again. Stochastic is turning up at the moment. MACD has turned bearish but there is a bullish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long
Last : 11,302
Target price : 11,800
Protective stop: 11,100
Outlook
The price rebound was resisted at the Fibonacci 50% correction point of the Sept’s decline. A Bearish Engulfing reversal candle was seen last Friday, which could hint that a decline could follow thereafter. Price is likely to test the Double Bottom low of 10,675 if it could not surpass 11,613. Stochastic just crossed down. MACD has turned bearish but there is a bullish crossover.
Trading Idea
Buy 11,350 for 11,800 with a stop below 11,100. Order was filled on 2 Oct.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long
Last: 3364
Target price: 3400 filled
Protective stop: 3290
Outlook
Price managed to close above the declining trendline and the 20EMA. As long as price stays above the declining trendline, we are likely to see price moving higher towards 3442. Stochastic is rising at the moment. MACD has turned bearish but there is a bullish crossover
Trading Idea
Buy 3315 for 3400 with a stop below 3290. Order was filled on 2 Oct. Profit order was filled on 6 Oct.
