Trade talk hope to boost the market

Trade talks between U.S and China continue influenced the market heavily. Today should be the deadline date where U.S implement a tariff on China’s imported good. But the progress on trade talk has been good and the deadline postponed. Yesterday, Larry Kudlow the National Economic Council Director said U.S and China making fantastic progress on the trade talk last week.

The comment incites rally in the Asian market and European market. Currently, DJIA futures pointed up 172 points. Not much to do at the moment as the week will close soon. Next week we could expect trade talk will continue making headline until President Trump meeting with China’s Xi Jinping.

Asian & European Stock market

Asian stock market closed higher on Friday. Japan stock market up 217.53 points (+1.02%) to 21,602.69, China Shanghai Composite up 53.05 points (+1.80%) to 2,994.00, and Australia ASX 200 up 23.70 points (+0.38%) to 6,192.70. European stock market is also higher. DAX Germany up 1.12%, UK FTSE up 0.53%, Euro STOXX600 up 0.54%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA holding out near 26,000 and expected to continue its ranging movement between 25,800 – 26,000. However, today session might drive the index higher as positive news come from U.S-China trade talk. If DJIA could close above 26,000 today then it is possible for the index to continue higher next week toward all-time high 26,951.81

Lennar Corp (LEN)

LEN share prices climbed above daily SMA 200 and rejected from $50.00 resistance. The share prices fall and will test daily SMA 200 today. We expect a break and bounce scenario will play out in LEN share prices. Traders could look for long positions near daily SMA 200. However, a consecutive closes below SMA 200 is a sign to abandon long positions.

Toll Bros Inc (TOL)

TOL situation is similar to the situation in LEN share prices. The bull manages to push the price above daily SMA 200 and currently, it is testing the averages from above. A long position on retest is a high-odds option. At the current time, traders will wait for bullish pattern near the averages.