Market News
- All three major U.S. stock indexes advanced for the third straight session, with market-leading megacaps providing the most upside muscle on Tuesday as soft economic data hinted that the Fed’s aggressive policy is taking effect, while falling benchmark Treasury yields boosted the rally’s momentum.
- Microsoft and Alphabet delivered weaker than expected quarterly results, sending their shares down about 7%. A mixed brew of earnings and downbeat forecasts, usually a negative for markets, raising expectations that the central bank could pull back on the size of rate hikes after its Nov. 1-2 policy meeting.
- Data on Tuesday showed slowing home price growth and souring consumer confidence. Such signs of economic softness, ordinarily unsupportive of risk appetite, are evidence of abating Fed hawkishness.
Market Views
- Shares in the Asia-Pacific rose on Wednesday morning as sentiment overnight improved over the Fed potentially turning less aggressive. Hang Seng index rebounded 333 points and Nikkei 225 index gained 289 points.
- The Bank of Japan increased the amount of Japanese government bonds it plans to buy as part of the day’s regular operations. The central bank offered to purchase 150 billion yen of JGBs with a maturity of more than 25 years, up from the planned 100 billion yen.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 31,772
Target price:
Protective stop:
Outlook
Price rebounded from the 20EMA support. It has turned the outlook from bearish to bullish after forming higher highs and higher lows. We are likely to see price testing 32,285 in the coming few days. Stochastic is rising and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 15,477
Target price:
Protective stop:
Outlook
Price could have formed a temporary bottom at 14,762. As long as this low holds, we could see this index slowly recovered to the 20EMA resistance point at 16,610. Stochastic is at the oversold region but MACD remains bearish.
Trading Idea.
Buy 15,400 for 16,600 with a stop below 14,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 11,150
Last: 11,445
Target price: 11,850
Protective stop: 10,750
Outlook
Price rebounded strongly with a bullish candle after testing a low at 10,431. It has moved above the rising 20EMA and is going test its previous high resistance point. Once this resistance is penetrated, we see price moving higher to 12,430. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 11,150 with a stop below 10,750 for 11,850. Order was filled on 19 Oct.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3824
Target price:
Protective stop:
Outlook
Price rebounded strongly after the intraday violation of its previous low support. It has moved above its previous resistance point and the 20EMA, forming successive higher highs and higher lows. We are likely to see price testing 4000. Stochastic is rising and MACD is bullish.
Trading Idea
Wait for better trading idea.
