US Markets Today: Swiss rate cut brings rally

Dec 18, 2014, (9:32AM EST)

update: Going by 5-hourly chart of Dow Jones, this index has major resistance at 17,590 and major support at 17,420. So, that makes the day’s trading range for this index.

Some hours ago, just when U.S. and European stock futures had started turning negative, Switzerland’s central bank announced a rate cut into the negative zone and global markets rallied on this new liquidity dose.

Dow Jones is expected to open near 17,500 level, which may or may not provide resistance to the index. Markets were looking for an excuse to take a breather or stage a technical bounce or rally before Christmas and the negative rates from Switzerland have provided that opportunity.

Any technical bounce usually lasts for 3 sessions. Today will be the second session after yesterday’s rally in U.S. markets. So, we will either see a narrow, small range bound session in U.S. market just like European markets. Or, markets will close lower than their opening levels. Please remember, lower than their opening levels, not completely lower in the negative.

If no big move happens in U.S. markets today, then we can only wait  for some bigger trading moves tomorrow, in the third session of this bounce back.

I’ll watch 17,500 level for Dow Jones to see if this bounce back will provide enough support to the index to go back to previous highs. You can trade in whatever way you want :)

Good luck, enjoy the session, have a great day in markets today!

See you later.

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Indian Markets Today: Rupee, Global cues to dominate Nifty

18 Dec, 2014, (8:55 AM IST)

Rupee is still way below 63 against USD, putting pressure on Indian markets.

SGX Nifty has jumped with U.S. markets, indicating a gap up opening in Nifty today.

Will Nifty sustain those high opening levels?

Going by the subdued global cues right now, it looks less likely.

For Nifty, 8080- 8,100 will prove the immediate and major resistance levels. If Nifty fails to stay above 8024 level, then consider it a negative signal for the index.

That makes it the immediate intra day range for Nifty. That is 8,100- 8020.

Below this level, yesterday’s low level (7,960) will hold as major support for Nifty.

Watch these levels, keep an eye on rupee’s trading pattern and global cues, and trade accordingly.

Global cues will decided today’s trend in Indian markets.

Enjoy the day, show and session in stock markets today :)

See you later.

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World markets today : High opening, low closing day?

18 Dec, 2014, (8:54 AM IST)

 Dec 17, 2014, (10:01 PM EST)

So the Fed didn’t change its language about rate hike and stock markets jumped up – and still stayed within their previous day’s range.

Because oil is still dropping, the Fed has still not changed its program to start hiking rate by the middle of the new year.

Speculators rallied and are now looking to get down from those highs. We might see a “high opening, low closing” session in global markets today.

U.S. and European stock futures have turned negative, signaling that last session’s rally was just a breather in global markets and the bearish trend is still intact.

That also means that global markets have developed a new range this week and bears will need to breach this week’s low levels to stop markets from turning range bound.

This week’s high and low are effectively the current range in all major indexes. Selling at high is still prominent trading strategy in global markets. This will change only if U.S. markets start trading higher than their high levels of this week.

Till then, look to sell at every bounce.

Good luck, have fun, have a great session in markets today!

See you later.

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US Markets Today: Range bound, waiting for the Fed

Wed, Dec 17, 2014, (9:15AM EST)

U.S. stock futures and trading pattern of European markets are indicating a range bound session until the Fed’s policy statement and press conference later today.

Both the U.S. and European indexes have been trading in a similar range since last two sessions, going up and down but not staying within the “boundary walls” of high and low of those sessions.

The early trading pattern in U.S. markets is expected to be in yesterday’s range. Second half of the session will depend upon what the Fed says about interest rate increase. Those, who are not interested in economical jargon, can watch U.S. indexes to interpret what the Fed’s policy is and how global markets will trade from that point.

A drop in U.S. indexes would mean, the Fed’s policy does not favor easy monetary policy- and a lower closing in U.S. markets will confirm stronger bearish trend in global markets going forward.

However, a jump in U.S. indexes, which looks a bit difficult right now, going by the avalanches of negative environment globally, will indicates that the Fed has said soothing things to easy money junkies and markets will improve from these lower levels.

2 PM EST – the Fed’s statement will be released and then 2.30 PM EST- the Fed Chair Janet Yellen will address a press conference. Till then, stock markets will trade with choppiness and in a small range. Only a rumor or inside information will spark a bigger movement in markets before that- in any direction.

So wait for the mid-day magic from the Fed and try not to fall asleep in front of your trading terminals :)

Good luck, enjoy the day, have a great session in markets today!

See you later.

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Indian Markets Today: Global cues to dominate trend

Nifty is in trouble.

I mean, for bulls.

For bears, Nifty is gifting away profits like gifts from Santa Claus :)

A strong bearish trend, a very weak rupee and global cues losing their gains- all these spell trouble for Nifty in today’s session.

Before discussing what these “troubles” can do to Nifty, please remember, today’s session might see speculations as any major central bank event day witnesses, so traders must be alert for sudden changes in the trend.

Nifty has been in bearish trend. Going by SGX Nifty’s lower trading today, we might see a gap down opening in Nifty, taking it near 8,050 mark, which is a support level for this index. Once again, give markets some time to stabilize after the gap down opening and watch if Nifty gets good support or starts getting weak after initial bounce back.

Selling at high is still good trading strategy for Indian markets IF, I repeat, IF global cues continue to remain weak. Nifty will blindly follow any bounce in global cues like yesterday so be alert for a change in global trading pattern.

If global cues remain subdued or turn negative then Nifty will see another negative session. 8000 and 7,970 are major support levels for Nifty.

Enjoy the session, have fun in markets today!

See you later.

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World Markets Today : Volatile, Jittery before the Fed

17 Dec, 2014 (8:47AM IST)

Dec 16, 2014, (10:17pm EST)

U.S. and European markets became range bound a day before the Fed’s important meeting on Wednesday. These markets traded within their previous day’s range and that’s why, like normal range bound trading pattern we saw high volatility in these markets.

European markets closed with their gains but U.S. markets slid down for the day’s high levels and closed with losses. U.S. indexes have repeated this pattern in last two sessions, signaling a selling pressure coming in at high levels.

Asian markets are following that highly volatile trading pattern and are trading mixed with choppiness.

SGX Nifty has now started slipping down, indicating another negative opening for Indian markets.

2 PM EST on Wednesday- that is the time global markets are waiting now because at that time the Fed will release its monetary policy statement and after that, the Fed Chair Janet Yellen will explain the Fed’s forward guidance. The Fed Chair’s comments will make or break the current bearish trend in global markets.

Major indexes around the world have reached their lowest support levels of their current, bigger range. That’s why high volatility will be seen in markets as on such technical levels traders/ investors buy or sell as per their market theories and bullish or bearish view point.

So watch global cues carefully, keep strict stop losses in all you trades and trade with the trend.

Good luck, enjoy the session and have a great day in stock markets today!

See you later.

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US Markets Today: Bears, Volatility Dominate

Dec 16, 2014, (9:28AM EST)

I am doing cartwheels ( obviously with bearish happiness :) ) so don’t expect a long post today. anyway, I have given more than enough information about trend in U.S. and global markets to help you make money. (that’s another reason for a shorter post today, I’m busy counting my trading profit $$$ :) )

So, the Fed comes tomorrow, and a lot of negative news is floating around the world, making markets jittery.

European markets have seen high volatility today, swinging between up and down and U.S. markets might do the same, so be careful and keep strict stop loss in all your trades.

Overall trend is bearish, no change in that but intra day up and down might hit major indexes in U.S. markets as we have witnessed in European markets. Negative U.S. stock futures are hinting at a gap down opening, which will take Dow Jones very close to its major support of 17,000. A technical bounce back might come near this level. Going by the strong bearish trend, it will be very interesting to see if Dow Jones survives this level today or tumbles below 17,000.

I’ll wait for that happy event :)

You can start trading now.

Good luck, have a great session in markets today!

See you later.

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Indian Markets Today: Global cues to decide trend

16 Dec, 2014 (8:57AM IST)

A few hours ago, during session in U.S. markets, SGX Nifty had fallen down by -100 points at one time, and rupee had tumbled below 63.40, quickly heading towards the mark of 64.

Now, SGX Nifty is heading towards a loss of nearly -70 points, indicating a gap down opening in Nifty.

 

Yesterday too, Nifty had opened with deep cuts but bounced back to recover those losses. That’s why traders should watch for a repeat pattern in Nifty in today’s early session.

Nifty will follow global cues and if these cues start turning negative, then Nifty might not recover from lower levels. Rupee will add to negative trend if it falls against USD.

Yesterday’s trading range will be the immediate range for Nifty in today’s session. (8,160- 8220).

In case of a lower opening, 8,170 is 8,220 will mark the first resistance levels for the index.

If Nifty fails to recover, then 8,114 will be its first support.

Everything depends on global cues and Nifty’s intra day trend will follow those cues.

Good luck, have a great session in markets today!

See you later.

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World Markets Today: Trend bearish, volatility high

16 Dec, 2014 (8:53AM IST)

Dec 15, 2014, (10:23pm EST)

What a fabulous session it was in U.S. and European markets for those who looked to sell at high!

Big slides in indexes from high levels, and big profits for those who shorted markets at resistance levels :)

Same trend and same trading pattern in global markets looks valid for today’s session also, but the volatility might increase as the Fed’s meeting comes a day closer. On Wednesday, the Federal Reserve will announce its short term monetary policy. Global markets have been jittery about a rate hike indication from the biggest central bank.

Global markets are repeating yesterday’s trading pattern at this time; that is, Asian markets are mostly down, SGX Nifty is highly negative and U.S. stock futures are trading positive, which is normal after a fall of nearly -100 points in Dow Jones.

Chinese markets turned positive after bad economic reports and hopes of more stimulus.

Selling at high is still relevant trading strategy in global markets. Keep an eye on U.S. stock futures, look how you local index behaves at every bounce ( or resistance levels) and trade accordingly.

Good luck, enjoy the trend, have a great session in markets today!

See you later.

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US Markets Today: Breather in Bearish Trend?

Dec 15, 2014, (9:18AM EST)

Being a bear, it’s nice to see European markets having lost their earlier gains and turning negative now :)

U.S. stock futures are still holding on to their gains, signaling a gap up opening today.

Will major indexes be able to sustain this positive opening? Or, will we see markets come down from these levels before the closing bell?

We’ll have to wait till the closing bell- or at least the second half of today’s session to see the closing trend in U.S. markets.

Before that, here is the trading strategy for Dow Jones in today’s session. Have a great session in markets today :)

Dow Jones: Bears dominating the index

Dow Jones Industrial Average index made an extremely bearish candlestick on technical charts, by closing at the lowest level of the day (17,280).

Dow Jones has next major support at 50% Fibonacci level of 17,062.

Before that, on Monday, this index will the immediate support at 17,177 and immediate resistance at 17,383. That way, these two levels (17,383- 17,177) make the broader range for Dow Jones on Monday.

In case, the index sees any recovery on Monday, it will encounter first resistance near 17,360 levels.

In case, the negative trend continues in global markets and in U.S. stock futures then the next stop for Dow Jones will come near 17,150 and after that, near 17,000.

For Monday, watch out for the 17,200 level for this index. That was a level that Dow Jones had crossed with a gap up a few session ago. So, this level might see a buying support in the next session. In that case, 17,200- 17,311 will make the top half of the next trading range for Dow Jones.

The bottom half will be between 17,200- 17,100 mark.

For trading on Monday, 15-Minute chart indicates resistance at 17,322 and then at 17,360. That means, in case we see Dow Jones get some support on Monday and open in positive, then watch out for these levels and observe if the index shows any signs of weakness around these levels. If it does, then these high levels will provide entry points for short trade.

For these short trades, 17,150- 17,100 and 17,060 will provide exit or profit booking levels.

Please remember, the current bearish trend is generated by fears of a rate increase by the Fed in near future. That’s why traders must keep strict stop loss in all their trades since any comment, speculation, rumor can reverse the trend.

Here are the major support and resistance levels for Dow Jones for Monday:

R3- 17,796

R2- 17,693

R1- 17,486

Pivot- 17,383 

S1- 17,177

S2- 17,074

S3- 16,868

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