Market News
- U.S. stocks closed lower for a second straight session on Tuesday after data indicating that the labour market remained on solid ground and dimmed hopes that Fed might have enough reason to begin reducing the size of its interest rate hikes.
- The sharp focus on labour market data overshadowed another report which showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising rates cool demand for goods and pricing pressures on manufacturers lessened.
- The barrage of missiles included one ballistic missile that landed in the free waters on South Korea’s side of the Northern Limit Line, a de facto sea border that separates the two Koreas — the first instance since the Korean War, authorities said
Market Views
- Shares in the Asia-Pacific were mixed on Wednesday morning as investors brace for another likely 75-basis-point rate hike by the Federal Reserve. Hang Seng index jumped 298 points while Nikkei 225 index fell 25 points.
- Policy board members at the Bank of Japan’s latest meeting agreed that it is appropriate to “persistently continue with its large-scale monetary easing,” according to minutes released Wednesday. The BOJ’s monetary policy targets price stability not foreign exchange rates, said few members.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,069
Target price:
Protective stop:
Outlook
The chart outlook of this index has turned bullish and we have seen price deviating far above the 20EMA. This is a sign of strong uptrend and we could see price retracing to 20EMA at 31,400 before the next rally. The next resistance lies at 33,415. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 15,400
Last: 15,692
Target price: 16,600
Protective stop: 14,950 Triggered
Outlook
Price could have formed a temporary bottom at 14,577. A morning star candlestick pattern was formed yesterday and we are likely to see price testing the first resistance at 20EMA at 16,090. MACD is giving divergence warning and Stochastic is at the oversold zone.
Trading Idea.
Buy 15,400 for 16,600 with a stop below 14,950. Entry order was filled on 27 Oct. Stop was triggered on 31 Oct.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 11,150
Last: 11,327
Target price: 11,850
Protective stop: 10,750
Outlook
Price is resisted by the previous high resistance zone at 11,650. As long as price stay above the 20EMA support at 11,315, we see price rebounding to penetrate the resistance zone to move higher to 12,460. MACD is bullish at the moment.
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: 3862
Target price:
Protective stop:
Outlook
Price has been forming successive of higher highs and higher lows. The 20EMA is acting as support at 3787. The next resistance lies at 4000. Stochastic is strong and is at the overbought zone. MACD remains bullish at the moment.
Trading Idea
Wait for better trading idea.
