Market News
- Stocks in Wall Street rallied on Thursday, while Treasury yields fell for the third straight day as investors digested data showing a declining U.S. economy for a second straight quarter, a day after Fed hiked interest rates.
- U.S. second-quarter gross domestic product fell at a 0.9% annualized rate, according to the Commerce Department’s advance estimate. This compares with economist expectations for 0.5% growth and came after a first-quarter contraction of 1.6%.
- The data followed a Fed commitment on Wednesday to not flinch in its battle against the most intense U.S. inflation since the 1980s, even if that means a “sustained period” of economic weakness and a slowing jobs market.
Market Views
- Asia Pacific shares slid on Friday morning despite U.S. equities rising on earnings due to a decline in Hong Kong and hesitant performance in China-hampered Chinese equities. Hang Seng index plummeted 479 points and Nikkei 225 index nearly unchanged.
- US President Joe Biden and Chinese President Xi Jinping plan to have an in-person meeting, which would be the first face-to-face one between the men since Biden became president.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 31,900
Last: 32,542
Target price: 32,600 Reached
Protective stop: 31,450
Outlook
Price rebounded from the resistance-turned-support zone, which is also the 20EMA support. The next resistance lies at 33,320. Stochastic is at the overbought region but MACD remains bullish. We are likely to see price moving higher even if a minor correction occurs.
Trading Idea
Buy 31,900 for 32,600 with a stop below 31,450. Entry order was filled on 22 July. Profit target was reached on 28 July.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,156
Target price:
Protective stop:
Outlook
Price was being capped by the falling 20EMA resistance point. A Shooting Star candlestick pattern was formed on 26 July. Price is likely to move to its previous low support zone at 19,200 if it further violates 20,050. MACD is bearish and Stochastic is weak as well.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,867
Target price:
Protective stop:
Outlook
Price rebounded from the resistance-turned-support zone, coinciding with the 20EMA support as well as the Fibonacci 50% correction point. This index is trading near to its overhead resistance point of 12,940 and we could see a pullback. Stochastic is in the overbought region and MACD is bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 3970
Last: 4092
Target price: 4070 Reached
Protective stop: 3895
Outlook
Price rebounded from the resistance-turned-support zone, coinciding with the 20EMA support as well as the Fibonacci 38% correction point. It could be heading to 4193. Stochastic is in the overbought region and MACD remains bullish.
Trading Idea
Buy 3970 for 4070 with a stop below 3895. Entry order was filled on 22 July. Profit target was reached on 28 July.
