Market News
- U.S. markets closed lower on Friday, capping Wall Street’s worst week since the March sell-off, as losses in richly priced tech heavyweights, such as Amazon and Facebook, snuffed investor sentiment. Apple also tumbled after it posted the steepest drop in quarterly iPhone sales in two years due to the late launch of new 5G phones.
- The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million, while the prospect of wider COVID-19 restrictions in Europe raised concerns about the economic recovery. The CBOE volatility index held at a 20-week high, a sign of investors jitters ahead of the final weekend before Election Day on Tuesday.
- Ahead of the last campaign weekend, Republican President Donald Trump trails Democratic challenger Joe Biden in national opinion polls partly because of widespread disapproval of Trump’s handling of the coronavirus. Opinion polls in the most competitive states that will decide the election have shown a closer race, still favouring Biden.
Market Views
- Shares in Asia Pacific bounced off one-month lows on Monday on solid data from China showing factory activity expanded at its fastest pace in a decade while oil prices skidded as many Western countries slid back into coronavirus-driven lockdowns. Hang Seng index rose 218 points and Nikkei 225 index gained 301 points.
- Oil prices continued to fall more than 3% on Monday on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the U.S. presidential election week.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,539
Target price:
Protective stop:
Outlook
This index violated the rising channel that was formed since Jun 20 with a long bearish candle last Wednesday. It is now testing the July’s low support zone. A possible short-term rebound towards the channel edge at 27,170 could be likely if it can hold at 25,990. Stochastic is at the oversold region and could be turning up. MACD has turned bearish as both of its lines are below the zero line.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,251
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 62% correction zone of the Aug-Sept’s decline for the third occasions. It is now hovering at the 20EMA, which is still flat at the moment. As long as price can hold above 23,960, there is chance for this index moving higher again. Stochastic is turning down now but MACD has turned bullish.
Trading Idea
Buy 24,150 for 24,600 with a stop below 23,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,052
Target price :
Protective stop:
Outlook
Price has been correcting and has fallen below the 20EMA support. The 20EMA is now suggesting a bearish trend. Price violated the Fibonacci 62% correction point at 11,280 as well. There is no sign of reversal as yet, we are likely to see price moving lower towards the previous low support at 10,680. Stochastic is still moving lower but MACD is bullish now
Trading Idea
Sell 11,280 for 10,700 with a stop above 11,500.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:long
Last: 3274
Target price: 3340
Protective stop: 3200
Outlook
Price has been moving lower after breaking below the 20EMA support. The 20EMA is now falling, suggesting a bearish trend for now. It violated the Fibonacci 62% correction point of Sep-Oct 20’s rally at 3340 as well. The next support lies at 3210. A hammer was followed through after a spinning top candlestick that formed on Thursday. As long as this index holds at 3209 zone, there is chance for this index rebounding towards 3340. Stochastic is at the oversold region and could be turning up. MACD is still bullish.
Trading Idea
Buy 3240 for 3340 with a stop below 3200. Order was filled on 30 Oct.
