CFD Indices – Wall Street Rally as Treasury Yields Retreat Amid Fed Uncertainty
Market News
- U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from Fed.
- The benchmark 10-year Treasury note yield was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes with auctions of the 10-year note and 30-year bond due later this week.
- Expectations that the Fed’s rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Market Views
- Asian market were mixed on Wednesday morning as recent comments from Fed officials suggested that the central bank may not be done raising interest rates. Hang Seng index rose 8 points while Nikkei 225 index dropped 213 points.
- Confidence among large Japanese manufacturers rose in November, which is the first time that the index improved since August. It measures business sentiment among large Japanese companies.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,122
Target price:
Protective stop:
Outlook
Price is currently hovering at the support-turned-resistance zone. This index has been rising continuously since 30 Oct, a correction could be likely before its next rally. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Sell 34,170 for 33,500 with a stop above 34,230
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,661
Target price:
Protective stop:
Outlook
This index is currently moving within a falling channel. It retraced after being capped by its upper channel resistance, and we are likely to see price falling to its lower channel support at 16,840. Stochastic is approaching the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,289
Target price:
Protective stop:
Outlook
Price broke and closed above the falling channel. It was resisted by the previous price high resistance. This index could retrace to the 20EMA at 15,124 before the next rally. Stochastic is at the overbought zone. MACD could be giving potential divergence warning.
Trading Idea
Sell 15,330 for 15,150 with a stop above 15,380
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 15,121
Target price:
Protective stop:
Outlook
Price rebounded after forming potential bottom at 14,589. It is going to test its upper resistance at 14,930, and once this resistance is penetrated, we see price moving higher to 15,270. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 14,935 for 15,240 with a stop below 14,865
CFD Trading – Buy HONG FOK (H30.SGX) @ $0.850. Stop @ $0.815 and Target @ $0.960.
HONG FOK Stock Code H30.SGX
Outlook
Price has been moving higher after reaching a bottom at S$0.805. There is potential divergence warning given from the RSI that hints at possible reversal. The RSI is rising above its neutral level. These could increase chances of the stock price moving higher.
Strategy
$0.850 Buy
$0.960 Price Target
$0.815 Risk Management Stop
3 weeks Trade Duration
CFD Trading – Buy FRENCKEN (E28.SGX) @ $1.08. Stop @ $1.02 and Target @ $1.26.
FRENCKEN Stock Code E28.SGX
Outlook
Price rebounded after being supported by the cloud, keeping the uptrend intact. A bullish conversion and base lines crossover could be likely in the coming session. MACD remains bullish and there is a bullish crossover. These could increase chances of the stock price moving higher.
Strategy
$1.08 Buy
$1.26 Price Target
$1.02 Risk Management Stop
3 weeks Trade Duration
