Market News
- Wall Street climbed to record highs on Friday, with major indexes turning in their strongest weekly gains since August, boosted by a surge in U.S. housing starts to levels last seen in 2006, while the greenback rose to a one-week high against the euro on expectations of solid economic growth.
- U.S. housing starts jumped 16.9% to a seasonally adjusted annual rate of 1.608 million units in December; a 13-year high that suggested the industry has recovered and can now help further the longest U.S. economic expansion.
- Trump sought on Sunday to assure American farmers and ranchers hit by a protracted tariff war with Beijing that a trade agreement he signed with China will lead to major purchases of U.S. agricultural products.
Market Views
- Asian shares were mixed on Monday morning as Wall Street extended its run of record peaks on solid U.S. economic data and lashes of liquidity from Fed. Nikkei 225 index was up 54 points while Hang Seng index fell 31 points.
- The People’s Bank of China kept the one year and five year loan prime rates (LPR) unchanged for January. The executive director of investment strategy at Haitong International Securities said that they expect some changes to the LPR at some point this year, even though we’re not seeing that as early as like the first month of the year right now.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,338
Target price:
Protective stop:
Outlook
This index created a new intraday record high at 29,402 last Friday, but ended the day with a Shooting Star candlestick pattern. This is a hint of bearish reversal. Price will have to break above this high for further rally towards 29,650. It is still moving within a rising channel and the 20EMA is acting as a layer of support at 29,050. Stochastic remains in the overbought region and is still strong. MACD is also bullish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bearish
Recommendation : Short
Last : 29,049
Target price: 28,450
Protective stop: 29,250
Outlook
This index tested its past four days recent high of 29,240 just now and is now moving lower. It has to break above this high for further upside of 29,680. It has been struggling for the past few days and if price breaks below the upper trendline support, we could see price moving lower to test the 20EMA at 28,480. MACD is still bullish but there is potential divergence warning while Stochastic is near to overbought extreme and is turning down.
Trading Idea
Sell 29,180 for profit objective at 28,450 with stop above 29,250 was filled on 20 Jan 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9169
Target price :
Protective stop:
Outlook
Last Friday, a new record high was created at 9177. Price broke above the rising channel and the 10EMA is acting as support at 9040. The next resistance comes in at 9447 and a move below the 10EMA will target the lower rising trendline. Stochastic is still strong but it remains in the overbought region. MACD is still strong and bullish at the moment.
Trading Idea
Wait for better trading Idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3326
Target price:
Protective stop :
Outlook
The index created another new all-time high at 3329 last Friday. It is very near to its next resistance of 3340. As long as price moves along with the rising trendline, our bullish view remains unchanged. The rising trendline support lies at 3246. Stochastic is still strong and has remained at the overbought region for extended periods. The MACD is also bullish at the moment
Trading Idea
Wait for better trading idea.
