Market News
- Both S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings, while Dow Jones held aloft by industrials to close 194 points higher.
- A third-quarter GDP reading showing the U.S. economy returned to growth in the July-Sept period, along with steady quarterly core inflation helped take the sting out of earnings.
- Investors continue to scan the economic horizon for evidence that the barrage of aggressive interest rate hikes from the Fed in the next FOMC meeting. While a 75 basis point rate hike at the conclusion of its Nov. 1-2 policy meeting is all but assured, the likelihood of a smaller, 50 basis point hike in December was 55%.
Market Views
- Asian markets fell as investors digested the Bank of Japan’s interest rate decision and a slew of companies in the region reporting earnings. Hang Seng index slid 285 points and Nikkei 225 index fell 97 points.
- Japan’s central bank left interest rates unchanged Friday, in line with predictions by economists in a Reuters poll. The Bank of Japan also said it would purchase necessary amounts of Japanese government bonds at a fixed rate in order to keep 10-year JGB yields at 0%.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,069
Target price:
Protective stop:
Outlook
Price has been moving higher after breaking out from its previous high resistance level. It is currently testing the 32,280 resistance zone. We could see some pullback to 20EMA at 30,870 if price is resisted at this resistance zone. Stochastic is at the overbought zone.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 15,400
Last: 15,122
Target price: 16,600
Protective stop: 14,950
Outlook
Price could have formed a temporary bottom at 14,762. As long as this low holds, we could see this index slowly recovers to the 20EMA resistance point at 16,380. Stochastic is at the oversold region but MACD remains bearish.
Trading Idea.
Buy 15,400 for 16,600 with a stop below 14,950. Entry order was filled on 27 Oct.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 11,150
Last: 11,117
Target price: 11,850
Protective stop: 10,750
Outlook
The price rebound was resisted at its previous high resistance zone. A bearish Harami reversal candlestick pattern was formed at this zone. It is currently sitting at the Fibonacci 62% correction point and if this support holds, we are likely to see price rebounding to move higher again.
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: 3794
Target price:
Protective stop:
Outlook
Price has been forming successive of higher highs and higher lows. It managed to penetrate its recent price high resistance zone as well. It is currently sitting at the 20EMA support and if this support holds, we are likely to see price moving higher to 4000.
Trading Idea
Wait for better trading idea.
