After previous week victory on the tax-bill, senate at the last minute decision to impose AMT (Average Minimum Tax) which require corporations to pay a tax of 20% if breaks make the tax lower. The addition of AMT is detrimental to the market and shot down technology sector which has a strong gain this year.
Aside from the AMT, the market also was shaken by President Trump action which declares Jerusalem Israel’s capital. The declaration also followed by a plan to move U.S embassy to Jerusalem despite warning from world’s leaders.
ADP Non-farm employment data
Data released today which is proxy to the Friday Non-farm employment data show ADP add 190k job in November. The number is higher than 189k expectation but not a significant result.
Asian & European Stock market
Asian stock market continues its retreat today. Nikkei down 445.34 points (-1.97%) to 22,177.04, Shang Hai Composite down 9.55 points (-0.29%) to 3,294.13 and Australia ASX 200 down 26.11 points (-0.44%) to 5,945.71. European stock market also on the path lower. DAX Germany down 0.99%, FTSE UK up 0.11%, and Euro STOXX 600 down 0.56%.
Dow Jones Industrial Average (INDU)
Dow Jones Industrial Averages settled lower in the previous trading day following the rising uncertainties from political sides and tax-bill. The trend continues bullish, but correction might target the bottom trendline. Traders will monitor the bearish momentum and look for reversal near the trendline.
Starbucks Corp (SBUX)
SBUX has upside potential as the share prices moved above daily SMA 200 and closed previous earnings gap. The best location to look for long position is previous breakout level around $58.00 and SMA 200. If the share prices return below daily SMA 200, traders might want to cover position.
Simon Property Group (SPG)
SPG come under attention as the bull continuously challenging the daily SMA 200. There is no breakout yet, and there is possibility rejection lower. Traders will continue to watch for possible breakout higher with top of channel as target. The best scenario to trade the breakout is a break and re-test.
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