Market News
- U.S. stocks tumbled on Thursday, reversing early gains as investors continued to rotate away from high-priced megacap growth stocks and second-quarter earnings season gathered steam. Dow Jones slumped 533 points, S&P 500 was down 43 points and Nasdaq Composite slid 125 points.
- The sell-off resumed a day after the Nasdaq posted its biggest one-day drop since December 2022 and the chip sector suffered its largest daily percentage plunge since the pandemic-related shutdown panic of March 2020.
- A mix of profit-taking and a rotation into sectors more primed to benefit from an economic recovery had battered major technology stocks over the past two sessions. Netflix fell slightly in aftermarket trade after its second quarter earnings missed expectations.
Market Views
- Asia-Pacific markets fell on Friday morning as investors on Wall Street continued to rotate out of tech stocks and take profits from the rally in equities in recent weeks. Hang Seng index fell 308 points and Nikkei 225 index dropped 63 points.
- Japan’s inflation came in at 2.8% for June unchanged from May, while core inflation, which strips out prices of fresh food, accelerated to 2.6%, from 2.5%. The core inflation reading was lower than the 2.7% expected by a Reuters poll of economists.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 40,682
Target price:
Protective stop:
Outlook
This index has formed an all-time high at 41,374. It violated its recent price low and the 20EMA, hinting at possible downward movement ahead. MACD has turned bearish and Stochastic is at the oversold zone.
Trading Idea
Sell 41,060 for 40,680 with a stop above 41,140
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,415
Target price:
Protective stop:
Outlook
Price has been declining after being capped at 18,381. The 20EMA is falling, suggesting the bearish price trend. MACD remains bearish and Stochastic is falling. We are likely to see price moving lower to 17,140.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 19,756
Target price:
Protective stop:
Outlook
Price has been declining after forming a price top at 20,758. It rebounded from 19,560 support and we are likely to see price testing 19,960 before the next decline. Stochastic is weak and MACD remains bearish.
Trading Idea
Sell 19,950 for 19,610 with a stop above 20,010
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,332
Target price:
Protective stop:
Outlook
Price has reached a price low of 18,285. We are likely to see price testing its 20EMA at 18,320, coinciding with its recent price high. Stochastic remains weak and MACD remains bearish. Price could continue to move lower.
Trading Idea
Buy 18,575 for 18,710 with a stop below 18,520. Entry and stop orders were filled on 17 July
