Market News
- The benchmark S&P 500 closed barely higher on Tuesday while shares in smaller companies soared to record highs as investors favoured more economically sensitive market segments as they bet on a recovery in 2021. The Nasdaq Composite gained 0.28%.
- Traders were betting that incoming U.S. President Joe Biden, a Democrat, would usher in heftier fiscal stimulus and that a ramp up in distribution of coronavirus vaccines would boost the economy, according Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
- Some investors were monitoring developments in Washington after at least three Republicans said they would join Democrats in a vote expected Wednesday to impeach President Donald Trump over the attack on the U.S. Capitol.
Market Views
- Asian markets rose on Wednesday morning, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while tight supply expectations pushed oil prices to a one-year high. Hang Seng index was up 6 points and Nikkei 225 index gained 213 points.
- Oil prices rose on Wednesday, with U.S. crude gaining for a seventh day, after an industry report showed a further drop in inventories and investors shrugged off worsening developments in the pandemic.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 30,900
Last : 33,155
Target price: 31,450
Protective stop: 30,900
Outlook
This index managed to stay above the ascending channel after it broke out last Thursday. As long as price trades above the channel, we could see price moving higher towards the channel target at 32,100. 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. Shift Stop higher to cost at 30,900 on 13 Jan.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,285
Target price:
Protective stop:
Outlook
This index penetrated above its previous resistance high of 28,067 yesterday after breaking out from the descending channel on 29 Dec 20. The 20EMA is still rising and is providing support at 27,270. It is likely to move higher towards the target price zone of 28,990-29,120 on a medium-term basis. Stochastic 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 : 12,942
Target price :
Protective stop:
Outlook
This index created a new all-time high at 13,134 last Friday. The 20EMA is rising and is providing support at 12,780. As long as the 20EMA holds, there is still chance for this index moving higher towards 13,560. Stochastic is rising now. MACD is still bullish but there is divergence warning
Trading Idea
Buy 12,800 for 13,100 with a stop below 12,650.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3812
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.
