US Markets Today: Lower Opening, Volatile Session

 Apr 28, 2016, (8:54 AM EDT)

This week has seen some amazing and turbulent action in U.S. markets and today’s session looks set to add to that series.

U.S. stock futures have been comatose since the Bank of Japan threw cold water on global markets’ stimulus hopes. Dow Jones futures have traded down with triple digit losses since then and European markets have also been in a negative trend today.

The U.S. economy has thrown positive numbers in Jobless Claims reports and the U.S. GDP Price Index has also come at par with expectations, although the Q1 GDP numbers (QoQ)have been lower than estimated.

U.S. markets are expected to open with deep cuts, but after that, the intraday trend will depend if major indexes find buying support at lower levels.

Dow Jones has major support near 17,900 level and traders should watch for a bounce back from this support. However, if the index breaches this support then the next support will be available near 17,850 or 17,020 marks.

U.S. markets have been range bound in last many sessions and that range and trend line remains intact even now, notwithstanding any single negative session.

As long as Dow Jones keeps trading above 17,500, the current range will stay in place.

Watch how major indexes trade near their immediate support levels and trade with the trend.

Good luck, enjoy the action-packed session!

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Indian Markets Today: Highly Volatile Session Ahead

28 Apr, 2016, (8:41 AM IST )

If you are our regular reader, by now you must be aware of how Asian and U.S. stock futures are facing a carnage after the Bank of Japan did not declare any new fiscal stimulus.

U.S. stock futures have turned highly negative and there has been an earthquake in currency markets where various forex major pairs have changed trend and will affect global stocks markets, including Indian stocks.

SGX Nifty was earlier trading higher by more than 30 points, and has now dropped nearly -20 points in negative. So overall, this makes a drop of 50 points for the index, indicating big selling pressure along with other global futures indexes.

Indian markets could see a highly volatile session today as this also happens to be the monthly F&O expiration session.

Although Nifty has major support near 7,930- 7,900, if global cues do not support, then the index and Indian markets could give up their recent gains.

Right now, nothing looks positive for any markets, anywhere in the world. Buyers have fled and only sellers seem to be active in markets.

Be careful in such volatile times and trade safely.

Good luck, enjoy the session!

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World Markets Today: No Stimulus From Japan, US Futures Crash!

28 Apr, 2016, (8:41 AM IST )

Apr 27, 2016, (11:10pm EDT)

Breaking news: the Bank of Japan has kept its interest rates unchanged and against market hopes, has not declared any new stimulus. Yen has shot up after this and U.S. stock future have crashed, indicating a volatile and probably a negative session in global markets.

SGX Nifty has dropped by nearly -20 points, after a positive start and gaining 30 points earlier.

Latest:

What a drop in Dow Jones futures! From nearly 50 points up, these futures dropped by more than -100 points in a few seconds! Nikkei futures dropped 4.4%  - That is nearly -1000 points drop in just a few minutes! (from 17,565, Nikkei futures dropped to a low of 16,622 in a span of 15 minutes.)

Yen zoomed up 2% against Dollar. Euro is also climbing speedily, indicating a drop in European stocks later, if the currency keeps its gains. Gold has jumped up as investors left dollar and rushed to this safe haven.

What an anti-climax for market speculators/ easy money junkies!

Earlier: (8:29 AM IST/ 10:58pm EDT)

(This is the scenario from global markets a minute before the BoJ declared its monetary policy. This is how speculative markets were dreaming/ hoping before the central bank dashed their hopes- and washed out my hard work!)

After an overnight volatile session in U.S. markets, Asian markets have opened with mixed but mostly positive numbers on hopes of more stimulus from the Bank of Japan.

The BoJ is expected to release its short term monetary policy in less than an hour from now.

Nikkei is trading higher as Yen and euro drop against the Dollar. As seen this week, global markets are now ignoring the Oil trend and focussing on currency markets since central banks and their policies have taken centre stage.

European stock futures are also trading with high gains on decline in euro. U.S. stock futures are positive and SGX Nifty is higher by more than 30 points by following these global cues.

If the BoJ declares more free liquidity for markets then global markets could stage another rally today, since the Fed has not hinted at any rate hike soon. However, if the BoJ does not fulfil market-expectations then a range bound trend could return where major indexes will trade based on local cues and forex patterns. Especially, if euro and Yen turn higher again, then stocks could turn lower in the second half.

At the time of writing, it is all green and positive numbers in world markets, but later on, the trend will depend on what news comes from the  BoJ.

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US Markets Today: Too Many Events; Volatile Session Ahead

 Apr 27, 2016, (Update:  2:20pm EDT)

As expected, the Fed has kept its interest rates unchanged. Euro, Gold and the Dollar index are doing their crazy dance of going up, falling down, going up again, as speculators try to make sense of the central bank’s statement.

In major U.S. indexes, Nasdaq is still sulking in negative, S&P 500 turned positive and Dow Jones added some gains. But, the Fed’s statement has talked about improvement in labor market conditions in the U.S., and has dropped “negative” word to describe the global economy it has been using in some previous policy statements. On the other hand, the central bank once again expressed its worries about stagnant inflation.

Overall, the Fed has neither given any clear hint about good or bad conditions for its rate hike plans. Bulls can see positive signals, bears can see negative hints in its statement and confuse each other with trading in opposite directions. The Fed will continue to twiddle its thumbs.

It has also given new lease of life to markets’ volatility.

(earlier :9:36AM EDT)

U.S. markets are poised for a volatile session today, driven by too many important events.

The opening bell will reverberate with yesterday’s big tech results from Apple and Twitter, both failing analysts’ expectations.

Twitter is trading down by nearly -15% in pre-open session and Apple has lost more than -7%. After jolts from Microsoft and Alphabet (Google’s parent company), Apple and Twitter have delivered double negative dose for tech index Nasdaq.

Apple Results:

It was literally jaw-dropping going through Apple’s numbers and forward guidance. Sales of its all iconic brands-iPad, Mac, iPhone- tumbled together. The company reported $50.6 billion in revenue (analysts expected $52 billion) and per share earnings of $1.90 (consensus estimates were $1.99).

Last year, these numbers were at $58.0 billion and $2.33, respectively.

iPhone sales fell 16% year-over-year, iPhone revenue dropped 18% , iPad sales fell 19% Mac sales tumbled 12% . Apple product sales in the Americas, its largest market, dropped 10% while in greater China, Apple saw a nosedive of 26% in its product sales.

As if all these numbers were not bad enough, Apple’s guidance for Q3 at $41 billion- $43 billion was much worse than expected estimates of $47 billion.

Economic Reports:

U.S. markets are also scheduled for a number of important economic reports, including the Crude Oil inventory numbers, through the early session today. As usual, these reports can cause considerable volatility in markets as speculators will make quick bets on results.

The Fed’s policy announcement:

The biggest event today will be the Fed’s short term policy announcement at 2 PM EDT. Although no one is expecting a rate hike in this meeting, markets will react quickly to any changed word/ hint in the policy statement about the central bank’s forthcoming rate hikes. This reaction can be in either direction.

That is the extremely action-packed agenda for U.S. markets today. Trade at your own risk in such volatile conditions.

Good luck, enjoy the session!

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Indian Markets Today: Volatile Session on Global, Local Cues

 27 Apr, 2016, (8:57 AM IST)

Although Indian markets will have their Futures &Options expiration session tomorrow, yesterday’s trading pattern looks like these markets concluded that work two days before!

After a slow start, Bank Nifty and Nifty rallied in the middle of the day and took broader markets higher with them.

Indian banking sector is beseeched with bad NPAs and loans and still Bank Nifty has been in an uptrend since last two months. This index has reached its one of the major peak point, 17,000 in this uptrend. If Bank Nifty continues to go higher, then the index could try to reach 17,500- its other important milestone on monthly charts.

For Nifty, 8,000 still marks as a major resistance and for intra day trade, today’s first resistance will arrive near 8,017 mark.

First major support will be 7,919 and as long as Nifty trades above this level, a positive trend will continue to remain in place.

These two levels also mark the immediate range for Nifty. In between, 7,950 will be another crucial level for support in Nifty.

Watch how Nifty behave near major points on its trend line and trade with the trend.

Expect a volatile trading pattern in Indian markets as F&O expiration will affect the normal trading in these markets.

Good luck, enjoy the session!

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World Markets Today: Volatile on Tech, Central Banks

27 Apr, 2016, (8:57 AM IST)

Apr 26, 2016, (11:26pm EDT)

Although U.S. markets closed nearly flat, the biggest event for these markets happened much after the closing bell, when Apple Inc. declared its quite bad quarterly results and Apple shares tanked by nearly 8% in after-hours trading.

Twitter also posted dismal results and was down by nearly -14% in after-hours trading.

Nasdaq futures are trading down by nearly -1% in early Asian session today, indicating that this index will take more hit when U.S. markets open or normal trading on Wednesday.

Euro is also trading higher, European stock futures are mixed, U.S. stock futures are down, SGX Nifty is flat,  Asian markets are trading mixed and everybody is chewing their fingers ahead of two big central bank meetings- the Fed and the Bank of Japan.

World markets are resembling a giant rugby field where many fierce matches are going on at the same time!

Expect a highly volatile session in world markets today, where currency, bond and commodity markets- all will churn and affect the stock markets. Traders should watch how their local index/ stocks behave and trade with the trend line.

Good luck, enjoy the session!

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US Markets Today: Volatile, Waiting for Apple Results

Apr 26, 2016, (9:17AM EDT)

As expected, European markets and U.S. stock futures have been trading with high volatility based on equally topsy-turvy trading pattern in euro and Oil futures.

For U.S. markets, the major event will happen after the closing bell when Apple (Nasdaq: AAPL), AT&T, eBay and Twitter declare their respective quarterly results. After disappointments from Microsoft and Alphabet (Google’s parent company), traders will be more interested in hearing the closing bell , for a change, and Apple’s numbers.

Like yesterday, U.S. markets could remain range bound and thus, highly volatile. If Nasdaq makes any big move- in any direction, take that as insider knowledge of Apple’s results.

Dow Jones is still restricted between 18,100- 17,800. Any big movement in this index will only be related to speculation/ rumour/ inside gossip about the Fed’ rate policy, as usually happens before the actual policy is declared.

Before the Fed’s short term monetary policy is announced tomorrow, expect uncertain and volatile session in U.S. markets today. Go with the trend line and trade for shorter durations.

Good luck, enjoy the session!

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Indian Markets Today: Global, Local Cues Put Pressure on Nifty

 26 Apr, 2016 (8:46AM IST)

Although Nifty survived 7,850 level yesterday, but various global and local factors are expected to make the index test that support early in the session today.

Bigger markets are trading with negative numbers and after yesterday’s negative close, technical signals are also hinting at a lower range for Nifty. Now the index faces resistance near 7,864 (instead of earlier 8,000) and if global cues do not support than Nifty could trade between 7,850- 7,780 range.

Indian markets will also have their Futures &Options monthly contracts’ expiration session this week, which will increase volatility in these markets.

For intra- day trading, 7,864 will be a major point for Nifty. A positive session will be confirmed only if Nifty breaks over this level and sustains higher numbers. In that case, 7,901 will mark the major resistance for the index.

However, if Nifty keeps lower than this level then negative trend will become more prominent in this index and broader Indian markets.

Below this level, Nifty is expected to find support near 7,817 and after that, near 7,780- 7,733 marks.

That makes two parts of immediate intraday range for Nifty; one will be between 7,800- 7,864 marks (on higher side)  and the other, between 7,800- 7,750 (on lower side).

Watch how Nifty’s trend line behaves between these levels (makes lower high- negative trend; makes higher lows, positive bounce back from supports) and trade accordingly.

Good luck, enjoy the session!

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World Markets Today: Volatile, Range Bound Trend Continues

26 Apr, 2016, (8:09 AM IST )

Apr 25, 2016, (10:38 PM EDT)

This action-packed week is picking up speed like a drunken horse, galloping around in a restricted area.

For those day traders, who have mastered the art of patience and doing what markets do; such trading patterns bring fabulous opportunities of making small but certain profits. For others, these turbulent waters are the worst time to lose their trading capital. You can choose which one you want to be.

U.S. markets traded in a similar fashion overnight, first dropping a great deal, the recovering and closing near the opening levels. At one time, Dow Jones had fallen nearly -150 points and it looked set to crash below its major support of 17,800. But the index survived before that and bounced back from 17,850 level.

Asian markets are following that volatile trading pattern and Nikkei (Japan) is down with considerable losses. Other Asian markets have also started slipping down and U.S. stock futures have dipped in the negative. SGX Nifty has increased its losses, now trading nearly -30 points down.

This is central banks’ action week and forex markets take lead in dominating trend in stocks. And negative numbers in global stocks have increased in last half an hour as euro jumped up against Dollar. As we had explained yesterday, a higher euro will put negative pressure on European stocks and rest of the markets will follow that trend. Today, once again euro is playing that role. Nobody is paying attention to Oil futures now that are trading with more than 1% gains.

On Wednesday, the Federal Reserve will declare its monetary policy and next day, on Thursday, the Bank of Japan will release its own monetary policy details.

Expect global markets to trade with high volatility before these big events. Economic reports from various regions and earning reports from U.S. companies will add to the churning.

Major indexes are expected to trade within their weekly range. Right now, sellers are dominating markets so drop from higher levels will have more strength than bounce back from support levels.

Watch how your local index trades and follow the short term trend.

Good luck, enjoy the session!

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US Markets Today: Volatile, Under Pressure before the Fed

 Apr 25, 2016, (9:29AM EDT)

U.S. stock futures and European markets are trading highly negative before the Fed’s meeting later this week.

Oil futures are also slightly negative, adding to the pressure on equities. Euro is also trading positive, making European stocks wilt under selling pressure.

Dow Jones had sustained 18,000 level in recent sessions and remained range bound between 18,100- 17,900 marks. This range will remain in place till any of these levels are broken. Lower support for Dow Jones will come near 17,800 if the day’s low level is breached.

U.S. and European markets are expected to remain range bound and volatile. Only some news about the Fed’s rate hike plans will trigger strong movement in either direction.

So watch the trend line and trade with the trend.

Good luck, enjoy the session!

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