- Dow Jones closed 222 points higher on Friday, breaching 28,000 for the first time. The S&P 500 and Nasdaq Composite also closed at record levels, fuelled by fresh optimism over a potential calming of U.S.-China trade tensions and by big gains in shares of healthcare companies.
- The gains of the major stock indexes came as President Trump made an announcement on healthcare price transparency. Walter Todd, chief investment officer at Greenwood Capital in South Carolina, said perhaps Friday’s gains were “a catch-up trade” as regulatory and election risks have contributed to the healthcare sector’s underperformance in 2019.
- Data on Friday showed U.S. retail sales rebounded in October, but consumers cut back on purchases of big-ticket household items and clothing, which could temper expectations for a strong holiday shopping season.
Market Views
- Stocks in Asia Pacific were higher on Monday morning as jaded investors awaited real evidence on progress in the U.S.-China trade dispute, though sentiment found support from another record close on Wall Street. Hang Seng index climbed 274 points and Nikkei 225 index rose 63 points.
- Chinese state media said on Saturday that Beijing and Washington had “constructive talks” on trade in a high-level phone call that included Vice Premier Liu He, U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,988
Target price:
Protective stop:
Outlook
The index has made a new historical high at 28,000 last Friday. Price has been moving higher after breaking above the triangle pattern. This index is strong and bullish as it is trading along with the rising 10EMA, which is providing a layer of support. The next resistance lies at 28,500. As long as price moves along with the 10EMA, there is chance for price moving towards the next target. MACD is rising and bullish at the moment. Stochastic is in the overbought extreme but is still strong at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,658
Target price:
Protective stop:
Outlook
Price has reached the Fibonacci 50% retracement point, which is providing a layer of support. Price will need to close above the overhead 20EMA and gap resistance at 26,903-26,967 to move higher. A failure move above this level is likely to bring price lower to test its low again at 25,540. Stochastic is moving towards its oversold extreme. MACD is still bullish but had a bearish crossover with the faster line now below the zero line.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : short
Last : 8313
Target price : 8050
Protective stop: 8320
Outlook
The index made a new all-time high of 8316 on Friday night and has remained in a rising channel and above the breakout level since end-August. As long as price moves along with the rising 10EMA and within the channel, price could be moving higher towards the next resistance at 8492. The index will only turn bearish if it moves below the channel. Stochastic is in its overbought extreme and MACD is still bullish.
Trading Idea
Sell 8270 for 8050 with stop above 8320 was filled on 14 Nov 2019
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3118
Target price:
Protective stop :
Outlook
Price made a new all-time high of 3120 last Friday night after breaking above an Ascending Triangle pattern. It has managed to stay above the breakout level and is trading above the gap support at 3065. Price is well supported at 10EMA. As long as price stay above 10EMA, price could be moving higher towards the next resistance at 3183. A move below 10EMA is likely to bring price lower to test the gap support at 3065. Stochastic is still strong at the moment. MACD is also bullish but had a bearish crossover.
Trading Idea
Wait for better trading idea.
