Market News
- Wall Street major indexes mostly rose on Tuesday after solid U.S. retail sales data was taken as supporting prospects the Fed will ease rates to rein in inflation while aiming to avoid a recession. Dow Jones advanced 742 points, S&P 500 was up 35 points and Nasdaq Composite rose 36 points.
- Echoing comments from Fed Chair Powell on Monday, Fed Governor Adriana Kugler said recent data suggests inflation is returning to the central bank’s 2% target. Investors are pricing in a cut of at least 25 basis points at the U.S. central bank’s September meeting, according to CME’s FedWatch Tool.
- The retail sales data suggest consumers are still spending, “so the market definitely saw that as a favorable data point,” said Dustin Thackeray, chief investment officer at Crewe Advisors in Salt Lake City.
Market Views
- Asia-Pacific markets traded mixed on Wednesday morning with Australia’s S&P/ASX 200 reaching an all-time high. Hang Seng index fell 24 points while Nikkei 225 index gained 32 points.
- Japanese authorities likely intervened in the currency market last Thursday and Friday, spending a total of 6 trillion yen ($37.9 billion) over the two days. Taiwan Premier Cho Jung-tai said that Taiwan was keen on being “more responsible” for its defense, and is steadily increasing spending, Reuters reported.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 40,978
Target price:
Protective stop:
Outlook
This index has created a new all-time high at 41,001 last night after penetrating its resistance of 40,347. Price is trading far above the rising 20EMA, and we could see a healthy correction towards 40,350. Stochastic and MACD remains strong and bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 18,150
Last: 17,717
Target price: 18,680
Protective stop: 17,860 triggered
Outlook
Price could be trading within a sideway consolidation range between 17,350 and 18,370. Stochastic remains weak and MACD remains bearish. This index has to penetrate above 18,381 for more upside.
Trading Idea
Buy 18,150 for 18,680 with a stop below 17,860. Entry was filled on 12 July and stop was triggered on 16 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 20,348
Target price:
Protective stop:
Outlook
Price has formed a price top at 20,758. It is currently moving within the range between 20,120 and 20,530. We could see price moving lower to reach its lower boundary at 20,120. Stochastic is falling and MACD remains bearish.
Trading Idea
Sell 20,520 for 20,180 with a stop above 20,610
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,570
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support zone of 18,450. The 20EMA is now rising, hinting at potential upside ahead. We are likely to see price penetrating its overhead resistance to move higher. Both MACD and Stochastic are rising and bullish.
Trading Idea
Buy 18,575 for 18,710 with a stop below 18,520
