Market News
- Dow Jones and S&P 500 rose on Tuesday, contributed by a stronger-than-expected results and outlooks from Walmart and Home Depot to bolster views on the health of consumers, while technology shares declined and weighed on the Nasdaq.
- Investors have also been optimistic lately that Fed can achieve a soft landing for the economy as it tightens policy and raises interest rates to reduce decades-high inflation. On Wednesday, July U.S. retail sales data and Fed’s minutes for its July policy meeting will be closely watched.
- China announced a slew of stimulus measures on Tuesday, including increased debt issuance and infrastructure spending, to support economic growth. Beijing is reportedly also considering more debt guarantees to support the property sector.
Market Views
- Asian stock markets rose on Wednesday following a strong lead-in from Wall Street, with Chinese indexes rising sharply as investors looked to more stimulus measures to boost economic growth. Hang Seng index rose 148 points and Nikkei 225 index gained 263 points.
- The Hong Kong shares of several Chinese firms, including China Life Insurance and China Petroleum and Chemical, fell following news that the companies plan to delist from the U.S.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,160
Target price:
Protective stop:
Outlook
Price continues to move higher after breaking out from a pennant chart pattern. It is currently trading at its resistance zone. There is divergence warning given from the MACD histogram. We could see price correcting to 20EMA if price close below 33,820.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 20,100
Last: 19,992
Target price: 21,000
Protective stop: 19,650
Outlook
Price is currently moving within a consolidation zone. It is capped by the overhead falling 20EMA resistance point, and was supported by its previous low support level. Price is likely to move within this range until either end is broken for directional movement. MACD remains bearish.
Trading Idea.
Buy 20,100 for 21,000 with a stop below 19,650. Entry order will filled on 16 Aug.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 13,450
Last: 13,626
Target price: 12,950
Protective stop: 13,650 Triggered
Outlook
Price is currently trading at its Fibonacci 62% correction point. A Doji candlestick pattern was formed last night, and if tonight we see a follow-through bearish candle, we could expect this index undergo a correction to the 20EMA support. MACD has a divergence warning.
Trading Idea
Sell 13,450 for 12,950 with a stop above 13,650. Entry order was filled on 12 Aug. Stop was triggered on 15 Aug.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4305
Target price:
Protective stop:
Outlook
Price is currently trading at the Fibonacci 62% correction point, which is also the previous high resistance zone. MACD has been giving divergence warning that hints at possible price high. We are likely to see a price correction if price unable to surpass this resistance zone.
Trading Idea
Wait for better trading idea.
