Market News
- All three major U.S. stock indexes lost ground on Thursday, weighed by technology shares, as Treasury yields rose on easing recession fears and global central bank officials convened at the Jackson Hole Economic Symposium.
- Central bank officials from around the world have gathered in Jackson Hole for the annual Economic Symposium. Investors will be laser focused on Powell’s address on Friday for clues on the timing and extent of the Fed’s policy easing cycle.
- Powell is expected to assure the markets that the Fed will cut rates in September, Ladner said. “He’ll be coy with the question about whether it’s going to be a 25 or 50 basis point cut, but will probably try to lead the market towards 25.”
Market Views
- Asian stocks were mixed on Friday as markets gauged hawkish comments from the Bank of Japan and mixed Japanese inflation data, with focus turning squarely to an upcoming address by Fed Chair. Hang Seng index fell 58 points while Nikkei 225 index rose 114 points.
- BOJ Governor Kazuo Ueda said in a parliamentary hearing that he still saw interest rates as very low, and that they needed to increase further to reach a neutral level. Ueda also reiterated plans to raise interest rates further if inflation remained steady- his comments coming after the BOJ hiked rates in an end-July meeting.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 40,807
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance zone. It unable to form a new higher high, and form a lower low. There is potential divergence warning given from MACD. We could see price starting to move lower.
Trading Idea
Sell 40,840 for 40,600 with a stop above 40,930
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 17,360
Last: 17,411
Target price: 18,000
Protective stop: 17,400
Outlook
Price formed an inverted head and shoulder reversal pattern, hinting at potential reversal ahead. It retested its neckline this morning, and we are likely to see price moving higher to 18,180. Both Stochastic and MACD are bullish.
Trading Idea
Buy 17,360 for 18,000 with a stop below 17,170. Entry was filled on 21 Aug. Shift stop higher to 17,400 to break even and protect entry.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 19,605
Target price:
Protective stop:
Outlook
Price has formed a bearish engulfing reversal candlestick pattern at its previous price high resistance zone. The 20EMA is now falling. There is divergence warning given from the MACD. We could see price starting to fall from 19,730.
Trading Idea
Sell 19,730 for 19,500 with a stop above 19,810
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 18,410
Last: 18,500
Target price: 18,130
Protective stop: 18,470 triggered
Outlook
Price has been moving higher along with the rising 20EMA that is acting as support at the moment. Stochastic is turning up and MACD remains bullish. We could see more upside if price moves along the rising 20EMA.
Trading Idea
Sell 18,410 for 18,130 with a stop above 18,470. Entry and stop orders were filled on 21 Aug
