16 October 2020 (7:59 am IST)
15 October 2020 (10:29 pm EDT)
US stock markets had another negative closing in their overnight session, albeit with small losses.
World stock markets are following that subdued and mixed trend in Asia at the time of writing.
Major Asian stock markets are trading mixed. Those with positive trend are showing minor gains, showing selling pressure is bigger than buying. SGX Nifty had crashed almost 3% yesterday and today, the index is 60 points up, indicating a similar, positive but feeble opening in Indian stock markets.
US stock futures are positive but gains are limited. European stock futures are also positive, but there is no certainty that these big markets will stay positive after the opening bell.
As we have been writing, world stock markets will continue to trade in a choppy manner, mostly negative, until the US presidential elections 2020 are not over. Big investors and hedge funds are sitting on the sidelines and waiting to see the results of this momentous election. President Trump seems to be making waves in his public rallies but the American electoral system is different (and complicated). We’ll be covering the results day live and how markets react to the results.
How To Day Trade:
- World stock markets have entered a cautious phase and profit booking is pushing the global trend down.
- World stock markets have been in a relentless uptrend recently so even dropping for two weeks will keep these markets range bound.
- Day traders should draw support and resistance line on monthly and weekly charts and those will guide the daily trading pattern of any given index.
- The sideways trend in a broad trading range will give rise to higher market volatility. That’s why small traders should follow the big money and try to cut down their trading.
- Today is going to be the last trading day of this week and selling pressure could dominate the intraday trend.
- Day traders should follow the trend line which will indicate if the trading range will be broad or narrow.
- A broader trading range will allow a trending session.
- A narrow trading range will keep markets range bound.
- Use appropriate trading strategies as per the trend in your local market.
World stock markets are trading with mixed numbers in Asia session, Europe and US sessions are expected to follow a similar trading pattern.