Market News
- Wall Street’s main indexes ended Tuesday’s session with gains as investors looked ahead to the Fed’s monetary policy update while they digested a mixed batch of earnings reports.
- The Fed kicked off a two-day monetary policy meeting. The central bank is widely expected to hold interest rates steady on Wednesday, and investors will monitor its statement and Fed Chair Jerome Powell’s comments for clues about its plans.
- Greg Bassuk, chief executive of AXS Investments in New York, pointed to mixed earnings reports and companies messaging concerns about upcoming quarters with energy prices rising and increasing uncertainty around wars in Israel and Ukraine that are showing no end in sight.
Market Views
- Most Asian stocks moved in a flat-to-low range on Wednesday as weak China data and anticipation of Fed rate decision kept sentiment frail. Hang Seng index rose 6 points while Nikkei 225 index gained 660 points after the Bank of Japan signaled few changes to its ultra-dovish policy.
- The BOJ’s decision to only slightly widen its yield curve control policy disappointed traders hoping for a more aggressive move. It also saw markets pricing in a slower pivot away from the bank’s dovish outlook, which points to easy monetary conditions for local stocks.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 32,850
Last: 32,986
Target price: 32,590
Protective stop: 33,030
Outlook
Price rebounded after forming a price low at 32,307. It has moved and closed above the 20EMA. As long as price stay above the 20EMA, which is also the resistance-turned-support zone, we see price moving higher to 33,220 in the near term.
Trading Idea
Sell now 32,850 for 32,590 with a stop above 33,030. Entry and target were filled on 27 Oct
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,084
Target price:
Protective stop:
Outlook
This index is currently moving within a rectangle sideway consolidation zone. It was capped by its falling 20EMA resistance point. A violation of its recent low of 16,871 will hint for deeper correction to 16,100. Stochastic remains weak and MACD is bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,393
Target price:
Protective stop:
Outlook
Price has been moving within a big falling channel. It is testing the support-turned-resistance zone, which is also the Fibonacci 50% correction point. Price is consolidating within a bearish pennant. A violation of 14,300 will hint for more downside to 14,040.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 14,848
Target price:
Protective stop:
Outlook
Price rebounded after forming potential bottom at 14,589. It is going to test its upper resistance at 14,930, and once this resistance is penetrated, we see price moving higher to 15,270. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 14,765 for 15,100 with a stop below 14,680.
