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Dow Jones Market Falls to 16-Week Low

  • DAR Wong
  • 29 October 2018

Fundamental Outlook   The U.S. GDP grows in Q3 season amid stock fall. Policymakers express more rate hike will come despite President Trump contests it. European Central Bank stays unchanged in monetary policy and expects inflation to pick up before year-end. Crude prices decline in flat demand.

The U.S. new home sale expanded at 553,000 in October and lowest since January 2017. Report on GDP rose 3.5 percent in Q3 season on annualized rate and better than forecast.

The U.S. orders for durable goods rose 0.8 percent in October and against negative forecast. Another report on core durable goods, excluding transport equipment, expanded 0.1 percent and missed forecast.

Weekly jobless claims at 215,000 for the week ended 21 October and stayed flat. Dow Jones benchmark dipped to 16-week low record and traded lower on weekly closing while settled at 24,685 on last Friday.

American President Trump chides FED chair Powell for rate hike that has damaged economic recovery. FED officials comment that credit tightening is appropriate and more hike will follow through for soft landing.

Markit reports Eurozone manufacturing index in October rises to 52.1, at slowest pace since September 2016. Germany manufacturing index also grew at 52.3 and lowest for past 1-1/2 year.

European Central Bank remains unchanged in monetary policy and President Draghi expects inflation to pick up by year-end. He also comments the difference between Rome and European Commission will resolve soon.

WTI Crude prices started in October by reaching to 4-year high but falls to 3-month low as of last week, due to sell0off in stock market and slower growth in global demand.

 

Technical Forecast   USD/JPY traded slightly lower last week and closed at 111.80 region on Friday. In overall, the market stays in the range from 111.50 – 113.50 as we expected and will remain unchanged this week. We shall observe the trend to break beyond this range before we could forecast a new direction.

EUR/USD traded lower as Dollar advanced higher last week. The trend is supported at 1.1330 level currently and tend to recover in coming week. We forecast the range will move from 1.1330 – 1.1530 region in technical recovery as traders might close some profits in this week.

GBP/USD is facing bear forces rising from BREXIT pressure and stronger Dollar. This week, we reckon the trend will be resisted at 1.2930 – 1.2950 region in case of recovery. Downside support at 1.2750 level is viewed as temporary to hold the trend but piercing beneath here will lead more selling potential to test 1.2600 area.

 

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a professional in financial industry based in Singapore with 29 years of global trading experiences. The expression is solely at his own. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.


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