Market News
- Wall Street’s main indexes ended mixed in a dull session on Thursday as gains in high-growth stocks offset losses in energy shares, with investors looking ahead to monthly jobs report for clues on the pace of interest rate hikes by Fed.
- Focus on Friday will be on closely watched U.S. employment report, which is expected to show nonfarm payrolls increased by 250,000 jobs last month, after rising by 372,000 jobs in June.
- Cleveland Fed President Loretta Mester, a voting member of the rate-setting panel, reiterated the need to see several months of inflation coming down toward the Fed’s 2% target before policymakers can let up on tightening monetary policy.
Market Views
- Asian markets were higher on Friday morning as investors look ahead to the Reserve Bank of India’s interest rate decision and the U.S. jobs report. Hang Seng index rose 6 points and Nikkei 225 index gained 199 points.
- Markets appear unfazed by China’s military drills around Taiwan, though Japan’s Defence Minister Nobuo Kishi said Chinese missiles landed in Japan’s exclusive economic zone and called the military drills a “serious problem,” according to an NBC News report.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 32,600
Last: 32,806
Target price: 32,000
Protective stop: 33,005
Outlook
An evening star candlestick pattern was found on Tuesday but there is no follow through candle to confirm the reversal. If price break above its recent high, it will invalidate the evening star pattern, else, we could see a price correction to the 20EMA at 32,130. Stochastic is falling and a bearish MACD crossover is likely.
Trading Idea
Sell 32,600 for 32,000 with a stop above 33,005. Entry order was filled on 3 Aug.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,184
Target price:
Protective stop:
Outlook
Price rebounded after forming a hammer candlestick pattern on 2 Aug. There is also divergence warning given from both MACD and Stochastic. The first resistance lies at the 20EMA at 20,510, followed by 21,000. Stochastic is rising and there is a bullish MACD crossover.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 12,960
Last: 13,347
Target price: 12,500
Protective stop: 13,160 Triggered
Outlook
Price broke above its resistance zone strongly on 3 Aug. The next resistance lies at 13,645. The 20EMA is rising, suggesting the bullish price trend. MACD is rising and Stochastic is at the overbought region.
Trading Idea
Sell 12,960 for 12,500 with a stop above 13,160. Entry was filled on 3 Aug and stop was triggered on 4 Aug.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4160
Target price:
Protective stop:
Outlook
Price has been moving higher after rebounding from the 20EMA support. It could be moving higher to the resistance zone of 4180. Stochastic is at the overbought region but MACD is bullish.
Trading Idea
Wait for better trading idea.
