Market News
- U.S. stocks ended a tumultuous year with the Dow and S&P 500 at records, as the three major U.S. equity indexes notched solid-to-spectacular yearly gains despite an economy upended by the COVID-19 virus as investors looked to a post-pandemic world.
- Still, data on Thursday was a reminder the economy still has a lengthy recovery ahead as weekly initial jobless claims, while declining for a second straight week to 787,000, remained well above the peak of the 2007-2009 Great Recession.
- Near-term expectations of bigger stimulus checks dimmed after Senate Majority Leader Mitch McConnell blocked a quick vote on Wednesday to back President Donald Trump’s call to increase COVID-19 relief checks to $2,000 from $600.
Market Views
- Asian markets were mixed on Monday morning as reports of a possible tightening in coronavirus emergency rules for Tokyo pulled Japanese stocks off 30-year highs, while also lifting the safe-haven yen. Hang Seng index rose 96 points while Nikkei 225 index fell 99 points.
- Japan’s factory activity ended a record 19-month run of declines in December as output stabilised for the first time in two years, suggesting manufacturers are shaking off the negative impact from the coronavirus pandemic.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,615
Target price:
Protective stop:
Outlook
This index has been moving higher steadily along with the rising 20EMA which is acting as support at the moment and suggesting an uptrend now. The next resistance lies at the Fibonacci 161% projection level at 31,130. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish and there is a bullish MACD crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,454
Target price:
Protective stop:
Outlook
This index has broken out from the descending channel on 29 Dec 20, which is a sign that price will resume its upward momentum. It penetrated its previous high of 26,768 on 30 Dec 20, strengthening the bullish trend. We could see this index moving higher towards the target price zone of 28,990-29,120 on a medium-term basis. Stochastics is rising while the MACD is bullish and is moving higher.
Trading Idea
Buy 27,250 for 28,150 with a stop below 26,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,877
Target price :
Protective stop:
Outlook
This index created a new all-time high at 12,920 on 29 Dec 20. The 20EMA is still rising and is acting as support at the moment. The body of the candlesticks are relatively small for the previous trading days. If price can further penetrate the all-time high, the next resistance lies at 13,060. Do be cautious and watch out if price turn the other way round as there could be forming a MACD divergence warning. Stochastic is at the overbought region but MACD is still bullish.
Trading Idea
Sell 13,000 for 12,750 with a stop above 13,150.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3759
Target price:
Protective stop:
Outlook
This index managed to stay above the rising 20EMA, which is acting as support at the moment at 3700. As long as this support holds, the bullish trend remains intact. It hit the Fibonacci 161% projection target of 3745 now and the next resistance lies at 3866. Stochastic is still strong and is moving higher. MACD is still bullish at the moment but could be forming potential divergence warning.
Trading Idea
Wait for better trading idea
