U.S China trade negotiation to boost the market
The stock market futures pointed upward more than 200 points after the confirmation of trade negotiations between the U.S and China in October. Both parties will meet in Washington. Current optimism might be temporary as President Trump could slam current positive development immediately and turn the market into the bearish area.
Meanwhile, traders and investors will focus on a slew of economic data. ADP non-farm employment data expected to come at 148k. Tomorrow, we will have Non-farm employment data.
Asian & European Stock market
Asian stock market extend gains today. Japan’s stock market up 436.80 (+2.12%) to 21,085.94, China stock market up 28.45 (+0.96%) to 2,985.86, and Australia ASX 200 up 60.20 points (+0.92%) to 6,613.20. European stock market also follow Asia higher. DAX Germany up 0.68%, UK FTSE down 0.74%, Euro STOXX600 up 0.50%
Dow Jones Industrial Average (INDU)
DJIA preparing for further upside after the bounce from 26,000 handles yesterday. The index future currently up more than 200 points which indicate more than 200 points higher opening. We think the index might target 27,000 handles before the next trade negotiation between the U.S and China.
Flowserve Corp (FLS)
FLS overall trend is bearish after the share prices fell below daily SMA 200. No reason to take long positions. If the share prices move upward then it might reach the SMA 200 where traders could look for short positions. Another failure test on $40.00 handle could establish a new floor which opens the chance for long positions.
Newell Brands Inc (NWL)
NWL upward correction has reached the daily SMA 200. Normally we will think the share prices experience rejection and start moving lower again. But, the current bullish leg has the odds to break above SMA 200 and continue the bullish trend. If a breakout happens then the level around $18.00 will become the nearest resistance to watch.
Traders could use daily SMA 200 as a reference level to take long positions when breakout and retest happen. On the upside, $20.00 is the target level.