07 January 2020, (8:43 am IST)
06 January 2020, (10:12 pm EST)
US stock markets staged a remarkable recovery in their overnight session after a highly negative opening. These trend-setting markets closed with positive numbers, which has infused confidence in global stocks and we are witnessing positive numbers all- around in the Asia session.
Oil and Gold futures have also come down from yesterday’s high numbers and this has also helped global stocks in rising.
At the time of writing, all major Asian stock markets are showing a big jump in numbers. SGX Nifty is 70 points higher, hinting at a gap up opening in Indian stock markets soon. US and European stock futures are trading with healthy gains.
Today’s trend will be dominated by how US stock futures trade. Right now, global stocks are showing recovery but this week’s trend is dominated by the US-Iran tensions. So, any gains in US stock futures will create enthusiasm in global stocks too. But any drop in those futures could trigger retreat in world stock markets.
For day trading, the best strategy, as always, will be to follow the trend. Trade with the positive trend as long as the price keeps rising.