Market News
- Stocks on Wall Street came off their highs in late trading after President Donald Trump announced a partial trade deal with Beijing that could be signed within weeks. Dow Jones climbed 319 points, S&P 500 rose 32 points and Nasdaq Composite gained 106 points.
- The U.S.-China deal agreed on Friday covers agricultural purchases, currency and some aspects of intellectual property protections, and it averted a tariff hike scheduled for next week, though there was no mention of tariffs set to rise in December.
- The Fed said it would begin buying about $60 billion per month in Treasury bills to ensure “ample reserves” in the banking system, a program that will continue at least until the second quarter of 2020.
Market Views
- Asian markets were higher on Monday morning trade as signs of progress in the Sino-U.S. trade standoff whetted risk appetites. Hang Seng index was up 298 points. Japan is on holiday today. US markets will be closed for a holiday tonight as well.
- Sentiment had been boosted when Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,890
Target price:
Protective stop:
Outlook
The recent rebound has moved above the 20EMA. Price is supported by the rising trendline as well. As long as this trendline holds, we are likely to test the previous high resistance at 27,310. However a move and close below the trendline would target the previous trough at 25,080. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,682
Target price:
Protective stop:
Outlook
The index tested the low two days ago and managed to bounce back higher. It has a strong long candle that moved above the 20EMA last Friday. The index may have formed a base at 25,230. The 20EMA is rising at the moment. As long as the support at 20EMA holds, price is likely to test its previous peak at 27,440. Stochastic is moving up from the oversold extreme and MACD has a bullish crossover in the bearish zone. MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7864
Target price :
Protective stop:
Outlook
The index was capped by the 7780 resistance level previously and last Friday this index had moved above the 7780 resistance and the 20EMA. As long as the index stays above the 20EMA support at 7750, we could expect further price rally towards 7980. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 22,068
Target price:
Protective stop :
Outlook
The decline managed to hold at the Fibonacci 50% correction point at 21,703 and this index has now moved above the 20EMA. It tested its high of 22,275 last Friday. The index would need to move above 22,275 for further rally towards 22,920. Stochastic is turning up from near the oversold extreme. MACD has a bullish crossover in the bullish zone.
Trading Idea
Wait for better trading idea.
