US Markets Today: Unemployment rate falls, so do markets

Sep 4, 2015, (9:10AM EDT)

So, the most awaited jobs reports came in some minutes ago and currency markets, U.S. stock futures and European markets saw a mini earthquake in their respective trading rings.

At first everybody saw only the nonfarm payroll and manufacturing payroll  numbers dropping and there was a slight jump in U.S. stock futures, hoping for a delay in the Fed’s rate hike plans.

Then traders noticed the unemployment rate that had come down!

That’s what the Fed is targeting for a rate hike, drop in unemployment rate!

So, U.S. stock futures and European markets fell more quickly and by bigger numbers than the increase had come a few seconds earlier.

Dow Jones futures dropped by -250 points in knee jerk reaction. Although these numbers have recovered slightly (-222 at the time of writing), but a gap down opening will bring this mega index close to breaching its major support of 16,000 in this session.

Will that happen? If it does, how low Dow Jones and broader U.S. markets will close today, considering that markets will start their next session with Chinese markets back in the trading rings on Monday?

All these questions will be answered after the opening bell in U.S. markets.

Keep and eye on 16,000 level for Dow Jones. If that level is breached, U.S. markets will be headed to more losses. If Dow Jones survives that level, then at least for today, U.S. markets could turn range bound and stay within their last two session’s range.

Good luck, enjoy the session.

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Indian Markets Today: Back to Negative Trend on Global Cues

 4 Sep, 2015 (9:30AM IST)

Indian Markets have opened with deep cuts, trimming all gains form yesterday.

Nifty is currently trading near previous session’s low levels and will find difficult to survive above 7,754.

If Nifty manages some recovery in the opening hour, then 7,770 will mark its major resistance. With highly negative global cues. Nifty and broader Indian markets look set to breach their week’s low levels.

For Nifty, 7,716 and then 7,677 mark lowest support levels. After these levels, Nifty will find major support only near 7,400 mark.

Good luck, enjoy the trend.

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World Markets Today: Running Sacred of China’s Return

Sep 3, 2015, (11:51pm EDT)

Sep 3, 2015, (11:51pm EDT)

As written earlier, global markets have given up all pretence of a rally and are trading down with big losses fearing the return of Chinese markets in global trading rings on Monday.

As you know, Chinese markets have been closed since Thursday on their local holiday and will reopen after 5 day’s gap on Monday next.

U.S. markets gave clear indication of this fear by closing down nearly negative after rallying early in their previous session.

Global markets are now reflecting that downtrend and trading with losses.

Asian markets are down and U.S. and European stock futures are already heavily negative, SGX Nifty has lost nearly -1%, indicating gap down opening in Indian markets.

Expect global markets to continue with their negative trend. The only question is, will markets breach their this week’s low levels today or wait till next week to do this.

Good luck, enjoy the session.

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US Markets Today: Volatile after the ECB’s Policy Declarations

Sep 3, 2015, (9:26AM EDT)

The European Central Bank declared its monthly monetary policy and the ECB President Mario Draghi made some comments about more stimulus which brought some earthquake like jolts to euro in currency markets and some steroid shots to equities in stock markets.

I was busy watching Mr. Draghi’s press conference to know what new announcement he brings to markets. True to his usual style of confusing markets and hanging some carrots which later disappear; the ECB Chief first announced that the central bank will increase its stimulus program (which made U.S. stock futures and European markets rally) and then said, they have not yet decided how it will be done!

After that, U.S. stock futures have trimmed some of their earlier gains, but still these futures are quite high and we can expect a good gap up opening in U.S. markets today. As written earlier, global markets have found some courage to rally in the absence of Chinese markets, that are closed for a longer weekend for local holidays, but it cannot be said with certainty if opening high levels will remain till closing hour in U.S. markets.

Dow Jones is not expect to go above its current range top of 16,650- 16,670 levels,  so watch out for a strong resistance near that level. A range bound session is expected in U.S. markets where last session’s low levels are expected to provide the support for today’s session. For Dow Jones, 16,050 is still holding strong.

Good luck, enjoy the session.

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Indian Markets Today: Range Bound, Volatile Session

3 Sep, 2015,( 9:09 AM IST)

Indian Markets are also enjoying an early  breather with the rest of the world as Chinese markets are closed to day and volatility levels are down.

But, SGX Nifty has shown selling pressure after some gains, at one time turning negative also.

That shows that Indian markets will also be vulnerable to such pressures at high levels. For Nifty, 7,759 will be the day’s major resistance. At lower level, 7,660 make the current strongest support for the Index. This makes the broader intra day range for Nifty.

If global cues pick up more speed, which looks unlikely right now, then Nifty can extend  its  gains till 7,819. On lower level, 7,711 will mark nearer support.

Watch these levels and trade with the trend.

Good luck, enjoy the session.

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World Markets Today: Range Bound, Chinese Markets take a break

3 Sep, 2015, (9:00 AM IST)

Sep 2, 2015, (11:30pm EDT)

Global markets are wiping their brows and Chinese markets go on a long weekend holiday and will remain  closed till next Monday.

So, the volatile dumping down will turn slow paced and big investors will have time to plan their exit from equities. But exit it will be because everyone will fear what will happen when global markets re-open  the return of Chinese dragon when global markets re-open next week and the Chinese dragon returns with more ferocity.

That’s why U.S. stock futures are not daring to gain much and trading near their previous close, dipping in negative at times, after a rally in their last session. It’s a case of Crouching Bear, Hidden Dragon in global markets now and all are running scared of this ferocious combination.

Of coarse, traders who trade with the trend, are glad to see such a strong trend in global markets, no matter what direction it takes.

Global markets might turn range bound and stay in their last session’s range today. Selling pressure will dominate at high level so watch out for such trading opportunities. Wait to see the upper and lower levels of your local index’s intra day range and then trade accordingly. Any bounce from support will be weak but any turn down from resistance will have more strength.

Good luck, enjoy the session.

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US Markets Today: Initial Jump on Good Economic Reports

Sep 2, 2015, (9:12AM EDT)

U.S. stock futures are jumping before the opening bell as a few economic reports have thrown healthy numbers and also, slight miss in the Private Non Farm Payroll numbers.

Speculators in equity markets are taking it as a “no rate hike from the Fed” indicator. But zooming bond yields are showing a reverse speculation in bond markets, which is taking it as a “healthy economy so quick rate hike from the Fed.”

The tussle between these conflicting speculations will be settled by China fears, that are dragging global markets down nowadays.

So, the trend remain negative and only thing to watch today will be Dow Jones and its 16,000 level. Will the index survive this support or will it fall below this critical barrier in a negative trend?

Yesterday, Dow Jones did breach this support but then got some buying support to close above 16,000.

The Fed’s rate hike speculation have taken the back seat now. In other words, such speculation are not able to fuel a rally in U.S. markets now, as we have seen till recently, because now the Chinese slowdown bear is overpowering all other factors.

So, watch how high U.S. indexes travel today, not expected to go higher than last session’s upper levels, and wait to see if selling pressure comes back at those levels. If it does, the sell and sail with the trend. If it doesn’t then expect a range bound session in U.S. markets where major indexes will remain volatile and bounce between various support and resistance levels.

The most important of these levels will be 16,000 in Dow Jones.

Give markets some time to settle after initial volatility, then trade with the trend.

Good luck, enjoy the session.

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Indian Markets Today: Volatile, Weak near Higher Levels

2 Sep, 2015, (9:23 AM IST)

Indian markets are taking a small breather today, after a steep fall in their last session.

Going by a weak positive opening in Nifty, it looks difficult that the index will make any substantial gains today.

7,820 is a major resistance for Nifty today. Only if the index sustains above this level, one can expect some gains in this index. If Nifty falls below this level then another negative session could take place where 7,746 and 7,711 will provide next support levels. That is, only if global markets provide strong support.

Nifty is following global cues and these are highly negative at this time. Overall, Nifty will remain range bound as long as it stays above 7,660 level. Below this level, on long term, Nifty will travel down to 7,400 level.

Good luck, trade safely.

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World Markets Today: Highly Volatile on Chinese Cues

2 Sep, 2015, (9:23 AM IST)

Sep 1, 2015, (11:53 pm EDT)

A few hours ago, when Chinese markets opened -4% down, global markets had started slipping towards negative, even though U.S. stock futures were highly positive after a very negative session.

Since then, Chinese markets have improved, although still down by more than a percent, so global markets are also showing healthy recovery. But some of the Asian markets are still trading highly negative.

This is a very fragile recovery considering how low U.S. markets had fallen in their last session. Dow Jones had dipped below its major support of 16,000, barely surviving to close above this level.

Chinese markets too have been highly volatile and there is no certainty how long this bounce form bottom will sustain in global markets. U.S. stock futures are following Chinese markets and the rest of the world id following U.S. stock future.

So, day traders should keep an eye on these futures and trade accordingly.

Right now, global markets are taking a breather, but it comes with high levels of volatility. Selling pressure might come in at high levels if Chinese markets start losing again. If not, then a range bound session could be seen in global markets where previous session’s high and low will mark today’s range also.

Good luck, enjoy the session.

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US Markets Today: Low Opening, Volatile Session on Data

Sep 1, 2015, (9:15AM EDT)

For bears, it is a heavenly day where Dow Jones futures are down more than -400 points before the opening bell.

Not only stock futures are highly negative, the speed of decline is picking up speed as the opening time is nearing in U.S. markets.

Not only a don opening, but U.S. markets will also face  many important economic reports soon after the opening bell, including Manufacturing PMI and Construction Spending among other numbers.

Any negative report will improve numbers in equities but positive reports will darken market mood as it will signal lending rate hike possibilities by the Fed.

Commodities are seeing their own volatile trading pattern with Crude Oil futures in the red and Gold jumping up just now.

Expect highly volatile opening session in U.S. markets today. Second session might be more stable and indicate if the opening weakness will continue in U.S. markets.

Good luck, enjoy the session.

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