Stock futures slightly higher after September bearish close
DJIA futures are currently up more than 200 points which indicates an October bullish opening. The bullish situation might be a temporary reaction after a bearish close in September. We might see a bullish correction this month as traders will observe a batch of earnings releases again. However, the bullish pressure might be limited as the market will also brace for another rate hike by the Fed.
Despite the bearish situation, we think the market will start to stabilize in one year and traders will prepare for the upcoming bull market. It might be the best time to hunt for value stock to hold for 1-3 years.
Dow Jones Industrial Average (INDU)
DJIA index printed a new lower low in the previous week’s trading session. The bearish trend continues to be strong and there is no bullish indication yet. Despite the situation, there is bullish pressure in DJIA futures before the opening bell. If the index starts a bullish correction then it might target the 30,000 and 30,500 – 31,250 area.
Daqo New Energy (DQ)
DQ share prices are trading above the daily SMA 200 and recently made a pullback toward the averages. The share prices seems to stabilize near the averages and will attempt to bounce from it. Traders could consider entering long positions near the current area with daily SMA 100 as an initial target.
If the trend turns bullish then traders will expect a new higher high printed on the chart.