19 October 2020 (7:42 am IST)
18 October 2020 (10:12 pm EDT)
World stock markets are rallying at the start of a new week. We expect this rally to continue through the weekly session.
During the weekend, the US Senate Majority Leader Mitch McConnell informed that the Senate will vote on $500 billion coronavirus stimulus package on Wednesday. There are also talks of a tax cut measure for small businesses.
As expected, US stock futures are rallying with big numbers at the start of the Asia session. Dow Jones futures are up by more than 150 points. Nasdaq futures have gained more than 100 points. These high numbers have provided support to a rally in global stocks. At the time of writing, every major index is trading high with solid gains.
All major Asian stock markets are up by 1% gains or near about. SGX Nifty is 70npointas higher, indicating a gap up opening in Indian stock markets. European stock futures are also rallying with US futures. If US stock futures stay high through the global session, the intraday trend in world stock markets will also follow that higher lead. That will also helped a gap up opening in US stock markets and the major US indexes will recover some of their last week’s losses and turn range bound within the last week’s trading range.
However, we all know what will happen if US stock futures turned lower and pared their gains. World stock markets will also lose their gains and reverse their trend.
Let’s hope that does not happen and we get at least two days’ up trend in world stock markets. On Wednesday, we can expect a choppy and subdued trading in global stocks.
We ‘ll talk about that when it comes to pass. Right now, its a jump start in world stock markets and day traders can expect to make some profits by following the minor uptrend.
How To Day Trade:
- We are witnessing a minor uptrend in world stock markets.
- It also the start of a new week, which makes it a daily and weekly uptrend.
- For day trading, positive trading strategies will be beneficial for day traders.
- These will involve buying at dip (near support).
- For this, draw a trend line on 15- minutes or 30- minutes charts and then, watch this trend line in 5-miutes time frame.
- When price touches the trend line and bounce up again, that will be the right moment to take long positions.
- Exit and book profits when the rising price dips and breaks the trend line instead of bouncing back.
World stock markets are trading positive on US stimulus hopes. We expect this trend to continue at least until the mid-week when the US senate will vote on the stimulus bill.