22 October 2020 (7:41 am IST)
21 October 2020 (10:10 pm EDT)
US stock markets traded negative in their overnight session and closed right at the session’s lowest point. That is a negative signal.
For the past two days, Dow Jones had tried to go higher and selling pressure has pushed the index lower before the closing bell. This shows that the buyers are not as optimistic as sellers are.
Today, in Asia session, US and European stock futures are trading highly negative as the US stimulus for Covid-19 again faces political hurdle and the US presidential elections 2020 are getting into murkier waters of Hunter Biden’s scandalous emails. The good thing is, President Trump, who is fighting against Hunter’s father Joe Biden, has kept away from making this scandal a point and is focusing mainly on what he had done for the US and its people during his first term. Results of these elections will be declared on November 3. Until then, US stock markets will continue to stay volatile and anxious, dragging down world stock markets with them.
At this hour, everything is highly negative in world stock markets. All major Asian stock markets are down as IMF lowers the growth forecast for this region. SGX Nifty is slightly negative after yesterday’s roller coaster ride. US stock futures are highly negative and European futures are following this negative trend. Dow Jones futures are almost 200 points down on news reports of Iran and Russia obtaining the US voter data and interfering in the election process with false flag operation of intimidating democrat voters and trying to damage President Trump’s winning chances.
How to Day Trade:
- World stock markets follow the trend in US stock futures. Today, these futures are highly negative.
- As a result Asia markets are also trading negative and European stock markets are also expected to start with gap down openings.
- This is a clear downtrend in global stocks and day traders should follow the trading strategies to tackle a downtrend.
- This will involve, use trend line or Moving Averages (9-days on bigger timeframe, 20-days on smaller timeframe) and sell when price turns down after coming close to touching these indicators.
- Since it is a strong trend, one can let their short positions run with the trend line on bigger timeframes (30-minutes, one hour) to accumulate profits.
- These volatile market conditions are good for day trading but not so good for positional trading because the trend changes every day.
World stock markets are trading negative in this session. US stock futures are highly negative, dominating the global trend. If these numbers continue to drop, we can expect a bigger downtrend in world stock markets.