Market News
- Wall Street indexes rose sharply on Thursday after strong retail sales data boosted optimism over the U.S. economy. Softer inflation data from earlier in the week also kept traders pricing in a 25 basis point rate cut in September.
- U.S. retail sales rose by 1% last month, accelerating from an unchanged reading in June, pointing to resilience in consumer spending activity, allaying fears of an imminent recession in the world’s biggest economy.
- Walmart stock rose nearly 7% after the retail giant, often considered as a bellwether for retail demand, reported its second-quarter earnings on Thursday, topping analyst expectations, driven by robust e-commerce growth and improved margins.
Market Views
- Asia Pacific stocks surged on Friday, tracking an overnight rally on Wall Street as strong U.S. economic data helped quell fears of a recession, while bets on interest rate cuts still remained in play. Hang Seng index surged 287 points and Nikkei 225 index rose 1,166 points.
- Sentiment towards Japan improved this week on stronger-than-expected gross domestic product data for the second quarter, which showed the economy was picking up amid improving wages and personal spending.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 39,850
Last: 40,585
Target price: 39,560
Protective stop: 39,950 triggered
Outlook
Price has been moving higher after penetrating its support-turned-resistance zone. We could see price moving higher to 41,000. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Sell 39,850 for 39,560 with a stop above 39,950. Entry and stop orders were triggered on 14 Aug
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,399
Target price:
Protective stop:
Outlook
Price has moved above the resistance zone, hinting at more upside ahead. The 20EMA is now acting as support zone. Stochastic is rising and MACD has turned bullish. These could increase chances of the stock price continuing to move higher.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 19,554
Target price:
Protective stop:
Outlook
This index is currently testing its previous price high resistance zone. A price correction to 19,140 is likely as price deviates from the rising 20EMA. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Sell 19,530 for 19,200 with a stop above 19,630
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 17,960
Last: 18,252
Target price: 17,740
Protective stop: 18,050 triggered
Outlook
Price is going to test its overhead support-turned-resistance level at 18,260. Stochastic is at the overbought zone and MACD remains bullish. We could see a possible price correction to 18,000 before its next rally.
Trading Idea
Sell 17,960 for 17,740 with a stop above 18,050. Entry and stop orders were triggered on 15 Aug.
