17 November 2020 (7:54 am IST)
16 November 2020 (9:23 pm EST)
US stock markets had another big rally in their overnight session and major indexes broke out of the range they had been trading in since the last 4-5 session. Dow Jones went up by 470 points and surpassed the last week’s high mark, which is a very positive signal.
Today, is Asia session, US stock futures are negative but keep pushing up to reduce their losses. Since US stocks started this week with a jump up, the trend for the week is positive and intraday trend could be volatile. We have seen a few time in the past week that US stock futures traded negative but the actual session turned out to be highly positive in those markets.
Major Asian stock markets are trading mixed at the time of writing. SGX Nifty is showing a gain of 50 points but Indian stock markets are expected to open with bigger gains since SGX Nifty had been accumulating gains since the Friday night session, then yesterday (when Indian stock markets were closed for Diwali celebrations) and now, today.
How To Day Trade:
- In a mixed markets conditions, we will witness different intraday trends in different markets.
- Day traders should remember that the overall trend in strongly positive in world stock markets.
- Therefore, they should wait for buying opportunities in their local markets.
- This opportunity will be signaled by a set up where price will cross the trendline and start rising from lower levels (if price drops first).
- Another set up will be price rising above the day’s high mark.
- That will be an excellent place to start long trades.
- The exit will be a set up where rising price will fall below the trendline. Day traders can use 5-minutes or 15-minutes charts for these signals.
World stock markets are trading mixed at this hour in Asia. But the week had started with a positive rally and that makes it a weekly uptrend in world stock markets. Monthly trend is already continues to rise and gain points with ever passing day and week.