Market News
- Wall Street closed lower on Thursday as hopes for fresh fiscal stimulus ahead of President-elect Joe Biden’s pandemic aid proposal were pitted against a weakening labour market. Dow Jones fell 68 points, S&P 500 was down 14 points and Nasdaq Composite slid 14 points.
- The Labour Department’s weekly jobless report showed the number of Americans filing first-time claims for unemployment benefits increased more than expected last week, underscoring the impact of a resurgence in COVID-19 infections.
- Investors also seemed reassured after U.S. Federal Reserve Chair Jerome Powell said an interest rate hike would not be coming anytime time soon and pushed back against suggestions that it might taper bond purchases any time soon.
Market Views
- Asian shares were mixed on Friday morning, brushing off a late Wall Street dip as expectations of large U.S. stimulus under President-elect Joe Biden shored up sentiment while oil prices perked up on upbeat Chinese trade figures. Hang Seng index rose 78 points while Nikkei 225 index fell 59 points.
- U.S. President-elect Joe Biden’s proposal to pour $1.9 trillion into a hobbled economy could lay the foundation for a surge in jobs and spending that many economists say is needed to avoid long-term damage from a record-breaking pandemic recession.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 30,900
Last : 30,909
Target price: 31,450
Protective stop: 30,900 Triggered
Outlook
This index has fallen back inside the ascending channel today, but will have to depend on today’s closing to confirm. The 20EMA is acting as support at the moment at 30,640. A possible pullback is likely if price closes inside the channel again. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish but a bearish crossover is likely. There is also MACD divergence warning.
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. Stop Triggered on 15 Jan.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,523
Target price:
Protective stop:
Outlook
This index penetrated above its previous resistance high of 28,067 on Wednesday after breaking out from the descending channel on 29 Dec 20. The 20EMA is still rising and is providing support at 27,490. 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 : 12,899
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 12,800. As long as the 20EMA holds, there is still chance for this index moving higher towards 13,560. A violation of 20EMA would hint for deeper correction. Stochastic is falling 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: 3786
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. The 20EMA is acting as support at 3753. Stochastic is at the overbought region. MACD is still bullish and there is a bearish crossover.
Trading Idea
Buy 3760 for 3830 with a stop below 3720.
