- Stocks rose on Friday after a slew of positive corporate news that included strong bank earnings and Disney unveiling a new streaming service. Dow Jones surged 269 points while S&P 500 closed above 2900, the first time in 6 months. Nasdaq was up 36 points.
- Sentiment was boosted on Friday by a massive deal in the energy sector. Dow member Chevron announced plans to acquire Anadarko Petroleum for $33 billion in cash and stock. The deal values Anadarko at a huge 37% premium from the stock’s close on Thursday. Anadarko shares jumped 32% while Chevron fell nearly 5%.
- Worries over economic slowdown were eased on Friday when China export data was stronger than expected and US jobless claims in the previous day, dropped to a 49.5 years low.
- Asian shares started Monday on a firm footing as a better-than-expected data from China helped boost confidence about the health of the world economy. Nikkei surged 290 points to its highest in 2019 while Hang Seng opened with a 300 points gain.
- The S&P 500 broke above the key 2,900 level and stood at less than 1% from a record high. Sentiment is good with Sino-U.S. trade a talk nearing a deal, Brexit uncertainty has been pushed back to Oct 31, 2019 and recent U.S. and China economic data have eased worries over an economic slowdown.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Last : 26,422
Target price: 26,970
Price managed to stay above the important support at 26,070 and is now moving towards the previous high at 26,498. A break of this high would target the record high at 26,970. MACD is bullish and rising but Stochastic is into overbought extreme. 20EMA is rising and we are expecting price to test the 26,498 high soon.
Stay on the bullish side for a test of 26,498.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Last : 30,123
Target price: 30,650
Protective stop: 29,740
Price reached another new high at 30,350 this morning and could be heading higher to the Fibonacci 161.8% target at 30,650 as long as price stays above 29,668. Stochastic is turning up from oversold extreme but MACD is not strong at the moment. The trend is still bullish and could be heading higher to 30,650 but caution is advised as MACD is showing weakness and possible divergence.
Keep long for 30,650 with protective stop below 29,740
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Last : 7623
Target price: 7685
Protective stop: 7570
Price made a new high at 7662 on Friday night and this continues the bullish trend which could bring price to 7685. This is the 127% Fibonacci projection of the previous rally. MACD and Stochastic are starting to show divergence warnings. We could be moving to 7685 but we could be approaching a market top soon and caution is advised
Keep long for 7685 with protective stop below 7570
Nikkei 225 Index
(CFD Symbol: JP225)
Last : 22,193
Protective stop :
Price reached a high of 22,238 this morning. Price has exceeded our target and the next target is at Fibonacci 261.8% at 22,588. Stochastic and MACD are both rising. MACD has turned bullish but Stochastic is into overbought extreme. 20EMA is strong and bullish. Price may be going higher but may not reach 22,588.
Take profit on long and wait for dip to get into long position later.