Market News
- U.S. stocks climbed to record highs as worries over Sino-U.S. trade tensions and Fed’s monetary policy have receded, but cautious investors have been sticking with technology shares and some defensive stocks over value stocks and more speculative plays such as IPOs.
- S&P 500 ended the day 29 points higher. It has gained 22% this year in large part due to the 36% gain in tech shares including the biggest contributors such as Apple and Microsoft. The Dow advanced 301 points while Nasdaq Composite gained 94 points to close at a fresh record high.
- Concerns over a slowdown in global economic growth have loomed. Tech companies that are considered capable of earnings growth even if the economy falls into a recession and defensive shares which offer steady dividends in the real estate, utilities and consumer staples sectors have alternated in leading American stocks higher.
Market Views
- Asian shares were mixed on Monday morning as growing optimism over U.S.-China trade negotiations and upbeat American job data boosted global investors’ confidence. Hang Seng index climbed 358 points while Nikkei 225 was closed with Japan on holiday.
- U.S. job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labour Department showed on Friday.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 27,396
Target price: 27,400 reached
Protective stop: 26,900
Outlook
The index broke above the triangle pattern last Friday with a bullish candlestick. The bearish engulfing reversal pattern was invalidated as there was no followed-through candle that confirm the reversal. Price continues to rise today and is now testing the all-time high at 27,403. A penetration of 27,403 would target for 28,030 which is the Fibonacci 127% projection level. Stochastic is still strong at the moment and MACD is still bullish.
Trading Idea
Buy 27,165 for a test of 27,400 with stop at 26,900 was filled on 31 Oct 2019
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,532
Target price:
Protective stop:
Outlook
The index has been moving within a rising channel for the past 15 trading days. Price gapped up and broke above the rising channel today. It is now testing the gap resistance at 27,600. Price will need to move above the gap resistance to be bullish again and for further rally towards 28,120. Stochastic is still strong at the moment and MACD is bullish and just had a bullish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8184 :
Target price :
Protective stop:
Outlook
The index broke above its all-time high of 8035 with a bullish candlestick last Monday and has remained above the breakout level for the past four days and is now moving within a rising channel. The 20EMA is rising at the moment. Price could be on the way moving higher towards its next resistance at 8256. The index will only turn bearish if it breaks below the channel. Stochastic is still strong at the moment and MACD is bullish
Trading Idea
Wait for better trade idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3072
Target price:
Protective stop :
Outlook
Price broke above its all-time high of 3028 with a bullish candlestick last Monday. It broke above an ascending triangle pattern as well. Price managed to stay above the breakout level for the past four days. The 20EMA is still rising and strong at the moment. As long as price hold above 3028, price is likely to move higher and test its next resistance at 3096 or even higher at 3125. Stochastic is still strong at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
