14 May 2019 (8:51 am IST)
13 May 2019 (11:21 pm EDT)
The simple day trading rule is, follow the trend. And today, world stock markets are showing some green numbers. In other words, stocks are taking a breather during their current downtrend.
US stock markets crashed with big margins in their overnight session. And this morning in Asia session, European and US Stock futures are showing some recovery. Dow Jones futures are more than a hundred points up, pausing and giving day traders a chance to review their day trading strategies.
Major Asian stock markets are still trading with losses, although not so steep as we have seen in the last many sessions. SGX Nifty is also down by double digits but this futures index of nifty has been recovering from the days low-level, indicating some buying support.
So, there are two to trend possibilities in world stock markets today. If US Stock futures continue to trade positive and recover through the session then global stocks will also see recovery in this session.
However, if any negative news related to the US-China trade deal sends U.S. stock futures down again, then global markets will also follow that trend.
That best day trading strategy will be to watch for a range-bound trend in world stock markets today. This range could be within the previous sessions high and low levels, or within intraday support and resistance levels.
Day traders should watch the short term trend in their local index, let markets create an intraday trend and support and resistance boundaries, then follow the trend within those boundaries.