CFD Indices – Apple’s Surge Sent NASDAQ To New All-Time High

Market News

  • Wall Street showed signs of a Santa rally on Tuesday, with the Nasdaq closing at a record high, helped by optimism about a potential government stimulus to protect the economy from the coronavirus pandemic. Apple was the top boost to all three U.S. benchmarks, surging 5% to its highest since September after a report said it plans to increase iPhone production by 30% in the first half of 2021.
  • U.S. House Speaker Nancy Pelosi invited top congressional leaders to meet later on Tuesday in an effort to finalize a massive government spending deal and reach an agreement on a new package of coronavirus relief.
  • The Fed is also expected to signal low-interest rates for the foreseeable future in its two-day meeting starting Tuesday. The recent coronavirus vaccine roll-out is expected to improve the central bank’s 2021 outlook.

Market Views

  • Asian stocks rose on Wednesday morning as hopes of effective coronavirus vaccines and the growing prospect of more U.S. fiscal stimulus cheered investors ahead of the Christmas holiday season. Hang Seng index rose 272 points while Nikkei 225 index was up 79 points.
  • Japan’s exports fell in November, dashing expectations for an end to the two-year run of declines, largely due to weaker U.S.- and China-bound shipments and suggesting a slower pace of recovery for the world’s third-largest economy.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,189
Target price:
Protective stop:

Outlook
This index is now consolidating after breaking above the resistance high at 29,195. The 20EMA is rising steadily and is providing support to price at 29,820. As long as the 20EMA holds, we could see further rally towards 31,130 if price breaks above its all-time high at 30,327. Stochastic is still strong at the overbought region and could be turning up again. MACD remains bullish at the moment.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,444
Target price:
Protective stop:

Outlook
This index is still moving within a consolidation range. A Hammer candlestick was formed yesterday at the lower consolidation zone, which could be a hint for a move to retest the upper boundary at 26,820. Stochastic is at the oversold region and is now turning up, suggesting potential upward movement ahead. MACD is still bullish and a bullish crossover could be likely.

Trading Idea
Buy 26,300 for 26,900 with a stop below 26,050.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,611
Target price :
Protective stop:

Outlook
This index created an all-time high at 12,673 on 9 Dec, but ended the day with a big Bearish Engulfing candlestick pattern. However, the decline was supported by the rising 20EMA. Price is likely to test its all-time high again, and if it breaks above this high, a further upside to 13,060 could be expected. Stochastic is turning up again. MACD is still bullish now.

Trading Idea
Buy 12,300 for 12,650 with a stop below 12,195.

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 3660
Last: 3693
Target price: 3710
Protective stop: 3620

Outlook
This index managed to stay above the rising 20EMA, which is acting as support at the moment at 3643. As long as this support holds, the bullish trend remains intact, and there is chance for price moving higher towards 3745. Stochastic is still strong and is turning up again. MACD is still bullish at the moment.

Trading Idea
Buy 3660 for 3710 with a stop below 3620. Entry order was filled on 15 Dec

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