Market News
- U.S. stocks ended sharply lower on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine. New York became the latest state to introduce stricter social distancing rules on Wednesday, as new infections in the country surged above 100,000 for an eighth consecutive day.
- The Trump administration on Thursday unveiled an executive order prohibiting U.S. investments in Chinese firms that Washington says are owned or controlled by the Chinese military, ramping up pressure on Beijing after the U.S. election.
- U.S. government started fiscal 2021 with an October budget deficit of $284 billion, a record for the month, as coronavirus-related outlays spiked sharply from a year earlier and revenues declined, the Treasury Department said on Thursday.
Market Views
- Asian markets were poised to pull back after markets in the United States and Europe sold off on concerns over rising coronavirus infections. Hang Seng index slid 101 points while Nikkei 225 index declined 274 points.
- U.S. Fed Chair Jerome Powell said on Thursday during a discussion with other central bankers that progress in developing a coronavirus vaccine was welcome news but that near-term economic risks remain as infections accelerate, underscoring the need for additional government stimulus.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 29,200
Last : 29,003
Target price: 29,900
Protective stop: 28,830
Outlook
On Monday, this index surged sharply and exceeded the Fibonacci 127% projection level at 29,738, but retraced to the previous high resistance-turned-support zone on Thursday. As long as it can stay above this zone, there is chance for price to retest 29,738. If price violates this support, we could see a pullback towards the 20EMA at 28,350. Stochastic could be turning down but MACD is bullish.
Trading Idea
Buy 29,200 for 29,990 with a stop below 28,830. Order was filled on 12 Nov.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 26,150
Last : 26,101
Target price: 26,750
Protective stop: 25,930
Outlook
Price is now trading within a range of 25,890 to 26,870, which is where the gap support and the Jul 20’s resistance high lie. This index is likely to stay within this range until a breakout occurs. The support lies at the 20EMA at 25,390, which coincides with the Fibonacci 38% correction point. Stochastic is turning down but still look strong. MACD is also strong and bullish now.
Trading Idea
Buy 26,150 for 26,750 with a stop below 25,930. Order was filled on 13 Nov.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,849
Target price :
Protective stop:
Outlook
There was a sharp two-day pullback that dragged price lower to the Fibonacci 62% correction point of the Nov 20’s rally. The 20EMA also comes in at this point, acting as support at the moment. As long as price stay above 11,680, there is still chance for this index to movie higher. A violation of this level would hint for a deeper correction. Stochastic is turning down. MACD is still bullish now.
Trading Idea
Buy 11,680 for 12,100 with a stop below 11,490.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3529
Target price:
Protective stop:
Outlook
This index has been maintaining above the gap support that was created on 9 Nov, which is also near to the Fibonacci 38% correction point of Oct-Nov 20’s price swing. The 20EMA is still rising now, and is acting as another layer of support at 3465. Stochastic is turning down but still strong at the moment. MACD is also bullish.
Trading Idea
Wait for better trading idea
