- S&P 500 notched a record closing high on Friday with upbeat earnings reports helping to drive optimism about the economy along with hopes for successful COVID-19 vaccines, even as investors monitored a surge in virus cases and restrictions around the country.
- Friday’s out-performance of more economically sensitive cyclical sectors including energy, real estate and industrials over growth sectors like technology was a clear indication of “optimism around the economy” said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta.
- State Street’s Arone said the aversion to a full lockdown cheered up some investors but that optimism may be overdone. He cited Fed official warnings about the potential economic damage rising virus cases could do without a fresh economic stimulus package in sight.
- Asian stocks hit a record high on Monday morning as vaccine optimism and strong economic data from China and Japan outshone worries about rising coronavirus cases, lifting just about every sector. Hang Seng index rose 130 points and Nikkei 225 index gained 488 points.
- Oil prices edged up in early Asian trade on Monday, recouping some losses from the previous session as hopes that OPEC+ will continue to curb output offset concerns of weaker fuel demand amid rising COVID-19 cases and higher production from Libya.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 29,200
Last : 29,708
Target price: 29,900
Protective stop: 28,830
Price managed to stay above the previous high resistance-turned-support zone and for the past five occasions. It is now moving higher towards the Fibonacci 127% projection level at 29,738 and the next resistance point lies at the Fibonacci 161% projection level at 30,745. Stochastic is still strong and is moving higher. MACD is also bullish.
Buy 29,200 for 29,990 with a stop below 28,830. Order was filled on 12 Nov.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 26,150
Last : 26,271
Target price: 26,750
Protective stop: 25,930
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 25,490. Stochastic is turning down but still look strong at the moment. MACD is also strong and bullish now.
Buy 26,150 for 26,750 with a stop below 25,930. Order was filled on 13 Nov.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 12,041
Target price :
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. Price is now rebounding and we could see price moving towards the previous high at 12,410. Stochastic could be turning up again. MACD is still bullish now.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
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 3484. We could see price moving higher towards the previous high of 3674. Stochastic is still strong and could be turning up again at this moment. MACD is also bullish.
Buy 3580 for 3670 with a stop below 3535.