Market News
- Wall Street three major indexes closed higher on Tuesday as upbeat earnings and better-than-expected factory data stoked a risk-on rally. Goldman Sachs Group, Johnson & Johnson and Lockheed Martin set the tone, with robust industrial output data providing signs of economic strength even as central banks tighten monetary policy to tackle inflation.
- The U.K., which has been roiled by a historic crisis in the government bond market, will report inflation readings for September later in the day, with annual inflation likely running at a double digit of 10% last month, would likely pressure the Bank of England to hike more aggressively.
- U.S. President Joe Biden will announce a plan on Wednesday to sell off the last portion of his release from the nation’s emergency oil reserve by year’s end, and detail a strategy to refill the stockpile when prices drop, a senior administration official said.
Market Views
- Asian shares were mixed on Wednesday morning, with U.S. corporate earnings aiding sentiment, while traders awaited British inflation readings later in the day for clues on how hawkish central banks need to be to fight inflation. Hang Seng index fell 170 points while Nikkei 225 index rose 162 points.
- Oil prices recovered some ground on Wednesday, after plunging more than 3% in the previous session on fears of higher U.S. supply and the economic slowdown in China.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 29,950
Last: 30,697
Target price: 28,850
Protective stop: 30,500 Triggered
Outlook
Price rebounded strongly from its previous low support zone. It has penetrated above the rising 20EMA as well as its previous resistance price high. We could see price testing 31,580 as long as it stays above the 20EMA. Stochastic is rising and MACD has turned bullish.
Trading Idea
Sell 29,950 for 28,850 with a stop above 30,500. Entry order was filled on 13 Oct. Stop was triggered on 18 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,702
Target price:
Protective stop:
Outlook
Price could have formed a temporary bottom at 16,101. There is potential divergence warning given from both Stochastic and MACD. We could see price testing the 20EMA at 17,310. 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:
Last: 11,283
Target price:
Protective stop:
Outlook
Price rebounded strongly with a bullish candle after testing a low at 10,431. There is potential divergence warning given from MACD. It is testing the 20EMA resistance point. Once the 20EMA is penetrated, the next resistance lies at 12,430. Stochastic is rising.
Trading Idea
Buy 11,150 with a stop below 10,750 for 11,850.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3751
Target price:
Protective stop:
Outlook
Price rebounded strongly after the intraday violation of its previous low support. It closed above the rising 20EMA and we are likely to see price testing its previous resistance price high at 3807. Stochastic is rising and MACD is giving potential divergence warning.
Trading Idea
Wait for better trading idea.
