Market News
- Wall Street scaled new highs on Friday with the Nasdaq Composite advancing 1.03% as hopes of more stimulus from Washington were shaken a bit by a senator’s comments but later bolstered after U.S. President-elect Joe Biden said his economic package will be in the trillions of dollars.
- Market participants looked past a report that congressional Democrats plan to introduce articles of impeachment against U.S. President Donald Trump on Monday, after a violent crowd of his supporters stormed the U.S. Capitol on Wednesday.
- U.S. banks Goldman Sachs, JPMorgan and Morgan Stanley will delist 500 Hong Kong-listed structured products, following a U.S. ban on investments in companies Washington deems linked to China’s military.
Market Views
- Asian markets rose on Monday morning while Treasury yields were at 10-month highs as “trillions” in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade. Hang Seng index rose 184 points and Nikkei 225 index surged 648 points.
- Oil prices fell on Monday on renewed concerns about global fuel demand amid strict coronavirus lockdowns in Europe and new movement restrictions in China, the world’s second-largest oil user, after a jump in cases there.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 30,900
Last : 30,935
Target price: 31,450
Protective stop: 30,550
Outlook
This index has been consolidating within an ascending channel, and last Thursday, it managed to breakout from this channel. We would like to see price stay above this channel for at least three consecutive days to confirm this breakout. The 20EMA is still rising and is acting as support at 30,450. The next resistance lies at 32,570. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish and there is bullish crossover.
Trading Idea
Buy 30,900 for 31,450 with a stop below 30,550. Entry was filled on 8 Jan.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,016
Target price:
Protective stop:
Outlook
This index hit its previous resistance high of 28,067 today after breaking out from the descending channel on 29 Dec 20. It could take a possible pause and retrace to the 20EMA at 27,070 if it could not break through this resistance. Overall, this index is still bullish and we peg our target at the zone of 28,990-29,120 on a medium-term basis. Stochastics is at the overbought zone while the MACD is bullish and is moving higher
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 13,050
Target price :
Protective stop:
Outlook
This index rebounded and created a new all-time high at 13,134 last Friday after being supported by the rising 20EMA support. It is now at the Fibonacci 161% projection level and the next resistance will be at 13,560. Stochastic is rising now. MACD is still bullish but there is divergence warning.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3806
Target price:
Protective stop:
Outlook
This index has created a new all-time high at 3831 after being supported by the rising 20EMA. It has penetrated above the Fibonacci 161% projection level of October 2020’s decline. The next resistance comes in at Fibonacci 200% projection level at 3866. Stochastic is at the overbought region. MACD is still bullish and there is a bullish crossover.
Trading Idea
Buy 3760 for 3830 with a stop below 3720.
