Market News
- U.S. stocks ended solidly lower on Thursday, with shares of Tesla falling after its results and Treasury yields surging as Fed Chair Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer.
- Tesla shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
- Powell said at the Economic Club in New York that U.S. central bankers were moving carefully on policy after aggressive rate hikes last year, but he added that the economy’s strength and continued tight labor markets could warrant further rate hikes.
Market Views
- Asian stocks extended steep losses on Friday as a rout in global bond markets continued to decimate risk appetite, while traders remained on edge over any more escalation in the Israel-Hamas war. Hang Seng index dropped 54 points and Nikkei 225 index slid 163 points.
- Comments from former BOJ officials also suggested that the bank could end its negative rate regime by as soon as December, ending nearly a decade of easy monetary policy enjoyed by Japanese stocks.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,390
Target price:
Protective stop:
Outlook
Price continued to form lower highs and lower lows, suggesting a bearish price trend. We think that price may retrace to the 20EMA before the next decline. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Sell 33,620 for 32,900 with a stop above 33,690
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,227
Target price:
Protective stop:
Outlook
This index is currently moving within a rectangle sideway consolidation zone. A big directional movement will be seen once either ends is violated. Stochastic is falling and MACD remains bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 15,200
Last: 14,740
Target price: 14,900 filled
Protective stop: 15,140
Outlook
Price was rejected by the support-turned-resistance zone. It broke down a triangle continuation pattern and continued to fall. This index could retrace to its resistance zone around 14,860 before its next decline.
Trading Idea
Sell 15,200 for 14,900 with a stop above 15,250. Entry was filled on 13 Oct. Move stop lower to 15,140 to protect profit. Target was filled on 19 Oct
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7480
Target price:
Protective stop:
Outlook
Price unable to penetrate its key resistance zone of 7710. A huge bearish engulfing was formed yesterday. It could correct to the 20EMA before the next decline. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea
