World Markets Today: Volatile, Mixed Trend Continues on Regional Cues

20 October 2017

Global stocks are exhibiting a range bound, volatile and mixed trend on regional cues. So, after having a negative close yesterday, European stock futures are trading much higher in early Asia session, indicating a trend within previous session’s high and low levels.

U.S. markets recovered after a negative opening overnight and except Nasdaq, other major indexes closed positive after recovering their earlier fall. Today, U.S. stock futures are trading with big gains in starting session.

SGX Nifty is also trading with considerable gains after falling yesterday and dragging down major India indexes in their short, special trading session of Diwali festival. India markets will remain close today and will prone with global markets on Monday.

Surprisingly, Asia markets are showing a mixed and mostly subdued trend. Japan, Shanghai and South Korea are hovering near the red line, and Australia is showing only mild gains.

Expect global markets to trade mostly on their regional and technical cues. U.S. markets are still in an uptrend but other markets are not blindly following that trend, which usually happens.

So, watch the local intra day trend in your markets and trade accordingly.

Good luck, enjoy the session!

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US Markets Today: Long Overdue Correction Arrives, Gap Down Opening ahead

19 October 2017 (9:12 AM EDT)

Finally, it looks like we are going to see a correction in U.S. markets today, which has been long overdue.

As we have been writing previously, global stock markets have been ignoring the current rally in U.S. markets and have been trading on local cues. We have also discussed lower European futures in our previous post and European markets are now trading with big losses following those earlier negative numbers due to regional worries.

U.S. stock futures are also highly negative today. Futures of Dow Jones are down by nearly -100 points, S&P and Nasdaq futures are also showing similar deep cuts, indicating a big gap down opening in U.S. markets today.

U.S. markets are showing such highly negative numbers for the first time after almost two month’s strong uptrend.

Why this sudden downturn in U.S. stocks?

Because the U.S. Treasury Secretary Steven Mnuchin has given the same warning which we have been writing all along- that, stock markets could crash if tax reforms do not materialize!

We have been expressing our concerns about this “hope rally” in U.S. markets and have been warning that all hope rallies usually have a disastrous end. A statement like that from the Treasury Secretary is nothing less than a warning to markets to cut down their expectations and come down to realistic levels. It also could be a ground preparation to end  stock markets’ expectations and get them ready for the inevitable disappointment of having to tax reforms. We have seen this kind of “preparation” from the Fed whenever the central bank is about to change its policy.

So, now we just have to watch how low U.S. markets will go after the opening bell and a very low opening levels. If major indexes start making lower highs and lower lows, that would indicate a trend reversal. However, if major indexes bounce back from any support level, then it will indicate a sideways trading pattern.

Watch carefully how the trend unfolds, then trade accordingly.

Good luck, enjoy the session!

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World Markets Today: Spooked by Dow Jones Rally?

19 October 2017

U.S. markets had a mixed session overnight, just as we had written in our previous post. Dow Jones had another strong rally and closed above 23,100 but S&P 500 and Nasdaq closed flat.

Surprisingly, Asia markets are trading mostly negative, even though China GDP has come as expected. Could it be that the Dow Jones rally is spooking markets about a bubble? European stock futures are also trading negative in early Asia session. U.S. futures are just below the red line but the uptrend in U.S. markets is intact at this point so small negative numbers don’t have any meaning. SGX Nifty is some -30 points down but India markets  have closed for the weekend to celebrate Diwali so SGX Nifty numbers are also useless today.

Expect global markets to continue to follow a mixed trend where different markets and individual indexes are expected to trade in the town ways, mostly dominated by local cues.

Watch the trend in your local index; which can be up, down or sideways, and trade accordingly.

Good luck, enjoy the session!

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US Markets Today: Futures Points To Big Gains in Dow Jones

18 October 2017 (8:27 AM EDT)

Futures of Dow Jones are showing nearly 100 points’ gains at the time of writing, indicating a jump up opening for the index, if the opening level follows these gains

However, Nasdaq and S&P 500 futures are showing only mild progress. That means we may see a mixed session in U.S. markets today.

Earning season has started and based on the company results of any specific index, this kind of “unmatched volatility” will continue is the days to come.

The overall uptrend is intact in U.S. markets and as we have been writing, such strong trend are excellent opportunities for accumulating profits through swing trading. Comparatively, day trading may not be as beneficial. If you are day trading, then watch the opening levels, give markets time to settle then follow the intra day trend. If you are swing or positional trader, just keep building long positions at every dip- and do keep strict stop loss levels in all your trades.

Good luck, enjoy the session!

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India Markets Today: Range Bound, Reversal from Overbought Levels

18 October 2017 (8:44 AM IST)

As we had been writing for a couple of month, India markets are trading within a broad range and this week, Nifty staged a breakout of that range to make new historic highs.

But, with that jump, Nifty also entered oversold zone on technical charts and considering that Bank Nifty has been showing weakness, it was obvious that Nifty will face a correction soon.

SGX Nifty is down by -34 points in early trade, indicating a lower opening in India markets.

Bank Nifty will have its weekly Options expiration today as these markets will be closed for Diwali celebration in next two sessions and will open only on Monday.

Such a long weekend, technical cues and volatile  global trend may trigger some profit booking in India markets today.

So we have two possible trends for these markets- a sideways pattern where markets will trade within previous range; or a negative trend. India markets are highly speculative in nature so it will be prudent to remain cautious about a third possibility, that of positive trend too.

Nifty has intra day pivot at 10232, Support comes below this mark, near levels of 10214-10193-10174 and resistance is expected near 10253-10272-10292.

Watch these levels and trade with the short term trend.

Good luck, enjoy the session!

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World Markets Today: Volatile, Range Bound, Trading on Local Cues

18 October 2017 (8:44 AM IST)

17 October 2017 (11:14 PM EDT)

My apologies for missing the session in U.S. markets. The blame is all on my doctor who, instead of just giving me some cough medicine, insisted on getting allergy tests done. So, he made money like bulls of U.S. markets and I lost like bears who were betting that Dow Jones will not touch 23,000.

Well, we have been telling all along that it was only a matter of time when Dow Jones will touch 23,000 and it did so in the overnight session. It was the 50th record high made by this mega index within this year. That sounds like a bubble, doesn’t it?

Maybe that’s why global stocks are showing no enthusiasm in Asia where major markets are trading mixed on local cues, completely ignoring the continuous rally in U.S. markets.

European stock futures are also ignoring that record high of Dow Jones and are trading negative, after having a negative session yesterday.

SGX Nifty is also down by nearly -40 points, indicating a gap down opening in India markets today.

Only U.S. stock futures are trading positive, indicating that the tax-reforms “hope rally” will continue in these markets.

Expect a volatile and mostly range bound trading pattern in global markets where the intra day trend will be dominated by local and currency cues.

Watch how your markets trade and follow the short term trend.

Good luck, enjoy the session!

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India Markets Today: Negative Data, Rupee Can Stop the Trend

17 October 2017 (8:37 AM IST)

India markets have been having a very volatile trading pattern recently, with sudden, big drops and equally big recoveries within a single session.

Yesterday was a similar session where major indexes had a high open, then dropped down steeple and then recovered most of those losses. Various data relating to inflation came mostly negative, giving markets hopes of rate cut from the RBI, but a dangerous drop was seen in the WPI (Wholesale Price Index), which is a major indication of economic growth. This index fell down much below expectations, and as a result, Indian rupee has dropped against dollar.

This is why SGX Nifty is down by -20 points at the time of writing. Also, India markets will have a very short week due to Diwali and Bank Nifty will see its weekly Options expiry tomorrow, which may increase volatility in markets.

Nifty had a breakout yesterday, but it needs confirmation. Bank Nifty had made a negative candlestick on charts by closing lower than its opening levels, showing weakness.

For intra day trading in Nifty, its pivot mark will be at 10216. Resistance levels will be near 10257-10284-10325 and support is expected near 10189-10148-10121 levels.

Watch how Nifty trades within those levels and follow the short term trend.

Good luck, enjoy the session!

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World Markets Today: Rising Dollar Puts Pressure on Stocks

17 October 2017 (8:26 AM IST)

16 October 2017 (10:56 PM EDT)

We had discussed yesterday, that the Dollar index had rising again and it could affect smaller markets.

Today, Asia markets are trading mixed on currency market’s trading pattern as different currencies react differently to dollar. SGX Nifty is negative for the same reason, indicating a lower opening in India markets later today. U.S. and European stock futures are also showing weakness, indicating a volatile session for these markets even though U.S. markets had closed with good gains.

Expect global stocks to trade inc hoppy manner and have a mixed trend. If U.S. stock futures and European markets trade lower, then it could affect other markets too.

Watch the intra day trend in your local markets and trade accordingly.

Good luck, enjoy the session!

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US Markets Today: Uptrend Intact, Range Getting Narrow

16 October 2017 (9:15 AM EDT)

In the previous session, major U.S. indexes saw a very narrow trading range. Dow Jones and S&P 500 remained positive but had a slow paced and very constricted trading zone for day traders.

Overall, the uptrend continues in U.S. markets and today’s positive stock futures are indicating the same trend to continue, with some sideways sessions in between.

As written previously, the intra day session in these markets can either stay sideways in a narrow range, or major indexes will climb some more to make another higher high pattern.

Dow Jones may open close to, or touch the 22,900 mark today, as suggested by slightly higher futures. If that happens, then it be just 100 points away from new milestone of 23,000. Let us wait and see when that milestone is reached.

Watch the support and resistance levels and trade with the short term trend, which may go a few notches up again, or remain sideways.

Good luck, enjoy the session!

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India Markets Today: Higher Opening Ahead, Range Bound Session Possible

16 October 2017 (8:48 AM IST)

SGX Nifty is trading some 40 points higher in early trade. If India markets follow these gains then Nifty may see a record high opening and other indexes may also open with big gains.

However, the Indian rupee is under pressure against the dollar today and that may make Indian indexes range bound later in the session. The Indian Prime Minister, Mr. Modi is expected to announce some important monetary sops later today and maybe markets are rallying on those hopes.

Whatever be the reason, just like global markets, these markets too have two trend- possibilities today: range bound after a high open or continuous climb.

Nifty has intra day pivot at 10159. Above this mark, resistance is expected near 10199-10231-10271 levels and support comes at lower levels of 10127-10088-10055.

Watch how trend develops near any of these levels then trade accordingly.

 

Good luck, enjoy the session!

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