15 September 2020 (8:05 amIST)
14 September 2020 (10:35 pm EDT)
US stock markets rallied in their overnight session. Nasdaq, as we had been telling our readers, jumped from its bottom and rallied 200 points. Tech stocks Tesla (Nasdaq: TSLA) and Apple (Nasdaq: AAPL) were among the biggest gainers of the day.
US stock futures are mildly positive in the Asia session. European stock futures are following their trend.
In Asia, all major stock markets are trading positive except Japan, where the main index Nikkei is down by more than 100 points at the time of writing.
SGX Nifty is marginally positive, up by only 24 points, indicating a flat to positive opening in Indian stock markets.
How To Day Trade: World stock markets are following the trend in US stock markets.
- The overnight rally in those markets have provided a positive opening for global stocks. However, if US stock futures become negative for any reason, we could see an increase of volatility in world stock markets.
- The good thing is, US stock markets have become range bound at their current levels. This fact provides support to world stock markets.
- For day trading strategies, this means that day traders should look out for buying opportunities in this session and then follow the trend line to let their profits run.
- We would urge our readers (particularly those who have not read our post about Nasdaq’s turn around and RSI’s role in that), to go back and read that post. It will show you how RSI can be used to call out bottom without being in the oversold zone.
- In Nasdaq, RSI made a double bottom on daily charts and indicated a trend reversal.
- Day traders can use the RSI indicator in different time frame in the same way and find out when a trend reversal is imminent.
- For today’s session, day traders should wait for their local index to dip, then rise. That bounce will be the best place to open a long trade. Don’t forget the money management rule no.1 of keeping a stop loss in all your open trade.
World stock markets are trading mostly positive. US stock futures are mildly positive, hinting at a range bound trading pattern. If these numbers stay positive, we can expect a positive session in world stock markets. If US futures turn negative later in the session, global stock may follow that trend too.