Market News
- Wall Street’s benchmarks finished up on Tuesday, recouping some of the previous session’s losses, as investors bought back in to technology stocks and investors shifted their focus to upcoming inflation data and the start of third-quarter earnings season.
- The easing of Treasury yields on Tuesday meant investors were drawn to high-growth stocks, which benefit from lower debt costs to fuel their growth, such as technology companies. Traders have now priced in a nearly 89% chance of a 25 basis-point interest rate cut in November.
- Oil prices surged 13% through Monday’s close since Iran launched about 180 ballistic missiles at Israel last week. Iran’s attack had raised fears that Israel might retaliate by hitting the country’s oil industry. President Joe Biden, however, has publicly discouraged Israel from taking this course.
Market Views
- Asian stocks rose on Wednesday with technology shares tracking gains in their U.S. peers, while Chinese markets fell sharply as investors were disappointed by a lack of details on more stimulus measures. Hang Seng index fell 260 points while Nikkei 225 index rose 263 points.
- China stocks rally fizzled out by the end of Tuesday, especially as China’s top economic regulator gave scant cues on how the new stimulus measures- which include proposed rate cuts, lower reserve requirements and more liquidity support- will be implemented.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 42,080
Last: 42,041
Target price: 41,580
Protective stop: 42,200
Outlook
This index was capped by its falling 20EMA which is acting as resistance at the moment. MACD remains bearish. Stochastic is weak and a bearish Stochastic crossover is likely. We are likely to see price continuing to move lower.
Trading Idea
Sell 42,080 for 41,580 with a stop above 42,200. Entry was filled on 8 Oct.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 21,460
Last: 20,597
Target price: 22,650 filled
Protective stop: 21,910
Outlook
A bearish engulfing candlestick pattern was formed on 8 Oct. The 20EMA is falling, hinting at more downside ahead. Stochastic is falling and MACD has turned bearish.
Trading Idea
Buy 21,460 for 22,650 with a stop below 21,000. Entry was filled on 3 Oct. Shift stop higher to 21,910. Target was filled on 4 Oct
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 19,850
Last: 20,045
Target price: 19,350
Protective stop: 19,930 triggered
Outlook
Price was capped by its previous price high resistance zone. It has to penetrate above 20,110 for more upside, else, we could see price falling to 19,680. MACD remains bullish.
Trading Idea
Sell 19,850 for 19,350 with a stop above 19,930. Entry and stop were triggered on 4 Oct
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 19,056
Target price:
Protective stop:
Outlook
Price is currently moving within a sideway consolidation zone between 18,910 and 19,120. It has moved below the falling 20EMA. We are likely to see price moving lower to 18,910.
Trading Idea
Wait for better trading idea
