Market News
- Wall Street paused for a rest on Friday after a four-day rally as investors digested the monthly U.S. jobs report and braced for the next coronavirus developments. Stocks still posted solid gains for the week despite the fall. Dow Jones fell 277 points, S&P 500 was down 18 points and Nasdaq Composite lost 51 points.
- The non-farm payrolls increased by 225,000 jobs in January, beating economists’ forecasts polled by Reuters that forecast payrolls would rise by 160,000 jobs. The employment at construction sites increased by the most in a year amid milder-than-normal temperatures.
- U.S. Treasury Secretary Steven Mnuchin said on Friday that he expects 2020 GDP growth in America to be less than 3%, partly due to problems at Boeing which halted production of its 737 MAX planes over safety issues.
Market Views
- Stocks in Asia Pacific markets slipped on Monday morning as the death toll from the new coronavirus outbreak crossed 900, overtaking the SARS epidemic, raising alarm bells about its severity. Hang Seng index slid 143 points and Nikkei 225 index declined 74 points.
- Factories in China are scheduled to reopen today after an extended holiday because of efforts to control the new coronavirus, though many are expected to remain shut for longer, which could further disrupt the supply chains for many companies.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 29,150
Target price: 29,730
Protective stop: 28,680
Outlook
This index has rebounded and has created a new record high at 29,530 after being supported at the resistance-turned-support level at 28,160. We saw a slight pullback today, but price is now supported at the previous price resistance turned support of 28,955, which is also the 20EMA support. As long as this level holds, our bullish view remains intact. Stochastic is turning up and MACD remains bullish.
Trading Idea
Look to buy 29,200 for a rally to 29,730 with stop below 28,680 was filled on 7 Feb 2020
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,329
Target price:
Protective stop:
Outlook
This index managed to recover from the decline after being supported by its previous low at 25,950. Price was capped by the gap resistance zone at 27,580 as well as the 20EMA resistance for the past two days. We would like to watch the price reaction at this zone. Price has to break above this zone to be bullish again; otherwise we may see another decline to test the low at 29.950 again. Stochastic is turning up from the oversold region but MACD has turned bearish.
Trading Idea
Wait for better trading Idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9422
Target price :
Protective stop:
Outlook
The index hit its new record high at 9460 last Friday. It is still strong and bullish as the index is trading within the bullish trend channel as well as the 20EMA. The 20EMA remains bullish and is still rising. The 20EMA will also be acting as support for the moment. We peg the next resistance at 9678, which is the Fibonacci 300% projection level. Stochastic is rising to the overbought region. MACD is still bullish at the moment with both its line well above the zero line.
Trading Idea
Wait for better trading Idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3332
Target price:
Protective stop :
Outlook
The index has risen back inside the trend channel and also moved above the 20EMA. Last Thursday, it created a new record high at 3358. The immediate support lies at 3293, which is also the lower trend channel support. As long as price moves within the channel, this index will remain bullish. Stochastic is turning up and MACD is still bullish. A bullish MACD crossover was seen, which is likely to bring this index higher towards the next resistance at 3370.
Trading Idea
Wait for better trading idea.
