Author: tickinsights

Market News

• Wall Street’s main indexes ended higher on Thursday as investors assessed the latest batch of economic data and as a surge in Treasury yields stalled ahead of a key inflation report. Dow Jones rose 116 points, S&P 500 was up 25 points and Nasdaq Composite gained 108 points.
  
• The recent move in Treasury yields to 16-year highs has loomed over the stock market, which has pulled back after the Federal Reserve last week signaled a hawkish long-term outlook for interest rates.
  
• The Democratic-led U.S. Senate forged ahead with a bipartisan stopgap funding bill aimed at averting a fourth partial government shutdown in a decade. The House of Representatives prepared to vote on partisan Republican spending bills with no chance of becoming law.

Market Views

• Asian stocks gained in Friday morning, reeling from steep losses this week as hawkish central bank signals and rising yields battered sentiment, although a rebound in technology shares boosted Hong Kong’s Hang Seng.
  
• Worsening sentiment towards China also rattled local stocks, as fears of a property market crash surged after embattled developer China Evergrande Group suspended all planned debt issuances due to a government investigation.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,713

Target price:

Protective stop:

Outlook
This index could have formed a bottom at 33,294 last night. It is testing the 20EMA resistance. Price is likely to penetrate the 20EMA to move higher to 34,000. Stochastic is rising but MACD remains bearish.

Trading Idea
Buy now 33,710 for 34,000 with a stop below 33,400

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,829

Target price:

Protective stop:

Outlook
Price reached its lower channel trendline support, coinciding to its previous low support zone. It is likely to rebound to 18,650. Stochastic is at the oversold zone. MACD is giving divergence warning. We are likely to see price moving higher to 18,600.

Trading Idea
Buy 17,580 for 18,600 with a stop below 17,400

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,729

Target price:

Protective stop:

Outlook
This index could have formed a temporary bottom at 14,424. It moved and closed above the 20EMA, hinting at more upside ahead. Stochastic is rising and MACD is giving potential divergence warning. We are likely to see price moving higher to 14,950.

Trading Idea
Buy now 14,730 for 14,950 with a stop below 14,630

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7615

Target price:

Protective stop:

Outlook
Price rebounded with a long legged hammer yesterday after being supported by the 20EMA. It is likely to rebound to 7715 in the near term. Stochastic is falling but MACD remains bullish.

Trading Idea
Buy now 7615 for 7710 with a stop below 7570.

Market News

• Wall Street’s main indexes pounded over 1% on Tuesday as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
  
• Adding to investor anxiety was the potential of a partial U.S. government shutdown by the weekend, which ratings agency Moody’s warned would harm the country’s credit.
  
• Investors will focus on Friday’s personal consumption expenditures price index for a fresh view of the inflation picture. This week also brings other data including on durable goods and second-quarter gross domestic product, as well as remarks by Fed policymakers such as Chair Jerome Powell.

Market Views

• Asian stocks were mixed on Wednesday amid persistent fears of rising U.S. interest rates, while Chinese stocks rebounded on positive industrial profits data and promises of more stimulus. Hang Seng index rose 111 points while Nikkei 225 index dropped 97 points.
  
• Data showed that Chinese industrial profits rebounded sharply in August, helping narrow their declines for the year to date. Sentiment towards China was also somewhat aided by promises of more monetary stimulus from the People’s Bank of China.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,688

Target price:

Protective stop:

Outlook
This index reached its previous low support zone that formed since Jun 23. A hammer was formed at this support zone, hinting that price may rebound to the 20EMA resistance point at 33,920. Stochastic is at the oversold zone. MACD is bearish but could give potential divergence warning.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,593

Target price:

Protective stop:

Outlook
Price reached its lower channel trendline support, coinciding to its previous low support zone. It could rebound to test the 20EMA resistance first. A violation of this support zone will lead to another downward movement. Stochastic is at the oversold zone and MACD remains bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,582

Target price:

Protective stop:

Outlook
This index is bearish as it broke below the channel. It could be moving higher to test the 20EMA resistance, and continue its downward movement thereafter. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 14,710 for 14,300 with a stop above 14,790

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7614

Target price:

Protective stop:

Outlook
Price is sitting at the trendline support, coinciding with the resistance-turned-support zone. The 20EMA is near to this support zone as well. Price could rebound from this support to test 7740 again. Stochastic is strong and MACD is bullish.

Trading Idea
Buy 7610 for 7725 with a stop below 7580