U.S government shut down, time to sell?

U.S government failed to reach agreement on a spending bill which result in shut down this week. Is it the right time for traders to sell the market? In the past, it seems government shut down has little impact on the market. From past data since 1976, there were 18 shut downs happened. Out of 18, 44.4% result in positive close.

The result means traders might want to treat current shutdown as normal trading day and approach it cautiously. Not jumping in short position on impulse and observe the result of shut down first. For full coverage on the impact of government shutdown, traders could click news from marketwatch.

Asian & European Stock market

Asian stock market closed mixed today. Nikkei up 8.27 points (+0.03%) to 23,816.33, Shang Hai Composite up 13.50 points (+0.39%) to 3,501.36 and Australia ASX 200 down 13.90 points (-0.23%) to 5,991.90. European stock market down as German coalition under talk. DAX Germany down 0.12%, FTSE UK flat 0.00%, and Euro STOXX 600 down 0.06%.

Technical Analysis

Dow Jones Industrial Average (INDU)

There is no reason to take short position in Dow Jones Industrial Averages aside from U.S government shut down. The uptrend still strong and the index recently reached 26,000 milestone. Traders might want to observe shutdown impact first before placing any position. Lawmaker will continue the talk until they reach agreement on spending bill.

Chipottle Mexican Grill (CMG)

CMG started a new bullish trend and almost reached the daily SMA 200. The trend stay bearish as long as the share prices stay below SMA 200. Traders could look for short position near the averages after a bearish setup formed.

American International Group (AIG)

AIG setup is a basic setup where the price currently challenging daily SMA 200. The trend is bearish which put more odds for downside. Traders could place short position near the averages.