15 October 2020 (8:18 am IST)
14 October 2020 (10:48 pm EDT)
On November 3, results of the US presidential elections 2020 will be declared. Before that day, we can expect a small correction or profit booking in world stock markets.
We had written this yesterday also and US stock markets closed negative, confirming the cautious nature of the current trading pattern in those markets.
If one sees the weekly chart of Dow Jones, one can clearly see a small formation where the index is creating a double top and a small weekly range between 28,650 and 27,100. We can expect Dow Jones to trade within this range until the election results are over. After that, we are expecting a big wave in US stock markets, which can go in any direction based on how markets take the results. World stock markets are expected to follow that wave and its direction.
US stock futures are negative in Asia session. European stock futures are following that lower trend. Major Asian stock markets are trading mixed. SGX Nifty is range bound and trading with minor gains.
How To Day Trade:
- World stock markets are trading mixed in the absence of any single, big factor to create a trend.
- Such market conditions are better suited for day trading strategies that are focused on the local trend.
- Therefore, day traders should watch the trend in their local markets and trade with it.
- The sentiment is subdued in world stock markets and most of the markets will trade negative or range bound.
- Day traders should adapt trading strategies for these two markets conditions.
- If it is a clear downtrend, then sell near high.
- If it is a sideways trend between support and resistance levels, then sell at high and buy at low.
World stock markets are showing a mixed and volatile trend. As we wrote yesterday, these market conditions will continue for two weeks as markets wait for the US presidential elections 2020 to get over. Until then, trade cautiously and conv=serve your trading money.