Market News
- U.S. stocks closed higher on Tuesday, with the S&P and Nasdaq setting record highs, due to a boost from the healthcare sector on positive COVID-19 vaccine news. Johnson & Johnson rose 1.73%, lifting both the Dow and S&P 500 as it could obtain late-stage trial results of a single-dose COVID-19 vaccine it is developing in January, earlier than expected.
- Pfizer also gained as it cleared the next hurdle in the race to get its COVID-19 vaccine approved for emergency use after the U.S. health regulator released documents raising no new safety or efficacy issues. Drug developer Moderna jumped 6.51% after Switzerland increased its confirmed orders for its COVID-19 vaccine doses to 7.5 million from 4.5 million.
- The Trump administration proposed a $916 billion coronavirus relief package on Tuesday, after congressional Democrats shot down a suggestion for a pared-down plan from the Senate’s leading Republican, Majority Leader Mitch McConnell.
Market Views
- Asian shares rose to a record high and U.S. stock futures gained on Wednesday morning as investors tracked positive news on COVID-19 vaccines and ongoing efforts to launch more fiscal stimulus. Hang Seng index surged 318 points and Nikkei 225 index advanced 343 points.
- Britain will suspend retaliatory tariffs imposed on U.S. goods as part of a dispute over aircraft subsidies from Jan. 1, the trade department said, describing the move as an attempt to de-escalate a damaging international trade conflict.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,248
Target price:
Protective stop:
Outlook
This index has been moving higher steadily along with the rising 20EMA, after breaking above the resistance high at 29,195. We could see price continuing its upward momentum for further upside towards 31,120, which is the Fibonacci 161% projection level of Sept-Oct 20’s decline. Stochastic is still strong and just had a bullish crossover. MACD remains bullish and a bullish crossover is likely.
Trading Idea
Buy 30,150 for 30,500 with a stop below 29,850
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,650
Target price:
Protective stop:
Outlook
This index is still moving within a consolidation range. It is being resisted at 27,070 for the fifth times, and it will need to break above this resistance for more upside. Price is holding at the 20EMA at the moment, and if price close below the 20EMA at 26,405, there is chance for price testing 25,900. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Trading Idea
Sell 26,990 for 26,400 with a stop above 27,130.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,643
Target price :
Protective stop:
Outlook
This index has created an all-time high at 12,652 last night, after breaking above its previous resistance high at 12,467. Although price has been moving higher, the candles are relatively small and weak. There could be divergence warning given from the MACD that warned of a top, and if a correction happens, we could see price moving lower towards the 20EMA at 12,260. Stochastic is at the overbought region. MACD is still bullish but is also relatively weak.
Trading Idea
Buy 12,510 for 12,800 with a stop below 12,400.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3710
Target price:
Protective stop:
Outlook
Price broke above the ascending triangle pattern last Friday and created a new all-time high at 3709. The next resistance lies at 3946. The 20EMA is still rising now, suggesting the bullish trend and is acting as support at 3626. Stochastic is at the overbought region now. MACD is still bullish and a bullish crossover is likely.
Trading Idea
Buy 3685 for 3745 with a stop below 3655
