29 October 2020 (8:02 am IST)
28 October 2020 (10:31 pm EDT)
Asian stock markets are trading with highly negative numbers after US stock markets suffered major losses. Dow Jones closed with a loss of more than 900 points.
On charts, Dow Jones is now making a highly negative candlestick for monthly, weekly, and daily sessions. But, we would like to reiterate here, this is profit booking by nervous investors, traders before results of the US presidential elections 2020 on November 3. Violence has erupted even before that and Philadelphia saw attacks on police personnel and looting, theft of big shops like Walmart.
On the campaign trail, President Trump is drawing huge crowds while his opponent Joe Biden has not done any rally or public speaking ever since his son Hunter Biden’s China relations have emerged. Senator Kamala Harris, who is running for the vice president’s post, could manage only a hundred or so people in Tucson. This one-sided campaign is also worrying US stock markets that there could be acrimony after the results are declared.
And we know, if US stock markets worry about something, world stock markets catch a fever.
So, right now, all major Asian stock markets are down with big numbers. SGX Nifty is down by 73 points, indicating a lower opening for Indian stock markets. US stock futures are trading positive at the time of writing. Dow Jones futures are 200 points up. But this is a small recovery considering the overnight fall in US stock markets.
How To Day Trade:
- This is a very strong downtrend in world stock markets.
- Day traders should take advantage of this trend and short sell whenever markets show a recovery.
- That recovery will stay feeble because seller are out in full force.
- If your markets open positive, wait for price to turn down, then start short selling.
- If your markets open with a gap down (such as Indian stock markets are expected to) it will take the RSI to the oversold region.
- Wait for the RSI signal to recover, (at least in 1-minute charts) then short sell when the recovery is over and price starts turning down again.
World stock markets are trading highly negative. This negative trend will continue this week and the early part of the next week too. Results of the US presidential elections 2020 will decide if this negative trend will continue or world stock markets will stage a trend reversal.