CFD Indices – Yellen’s Hefty Fiscal Package Lifted US Indices.

Market News

  • Wall Street’s main indexes closed higher last night as U.S. Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package where the benefits will outweighed the costs of a higher debt burden before lawmakers to help the world’s largest economy ride out a pandemic-driven slump.
  • General Motors shares jumped 9.7% as the best performers on the S&P 500 after self-driving car marker Cruise, which the automaker is a majority shareholder, said it would partner with Microsoft to accelerate the commercialization of self-driving vehicles.
  • The U.S. Chamber of Commerce, the country’s biggest and most influential business lobby group, shifted its position on climate change on Tuesday, saying Congress should pass laws pushing companies to limit greenhouse gas emissions.

Market Views

  • Asia-Pacific shares were mixed on Wednesday morning as investors reacted to the release of China’s latest benchmark lending rate, where both the one-year prime rate (LPR) and five-year LPR in China were remained unchanged. Hang Seng index rose 49 points while Nikkei 225 index fell 162 points.
  • Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.45% to $56.15 per barrel. U.S. crude futures advanced about 0.45% to $53.22 per barrel.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short @ 30,950
Last : 30,923
Target price: 30,350
Protective stop: 31,290

This index has fallen back inside the ascending channel last Friday. It is currently capped by the upper channel line and supported by the 20EMA. Once the 20EMA of 30,690 is violated, we are likely to see price moving towards the lower boundary of the channel support at 29,870. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish but there is a bearish crossover. There is also MACD divergence warning.

Trading Idea
Sell 30,950 for 30,350 with a stop above 31,290. Order was filled on 19 Jan

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,698
Target price:
Protective stop:

This index is very strong and bullish after breaking out from the descending channel on 29 Dec 20. It hit and closed above our target price zone of 28,990-29,120 yesterday. It is likely to move higher and to test the next target zone at 30,170-30,350. Stochastic is strong and bullish at the overbought zone. MACD is also strong and bullish and is moving higher.

Trading Idea
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation : Short @ 12,850
Last : 13,034
Target price : 12,400
Protective stop: 13,100

This index created a new all-time high at 13,134 on 8 Jan. Price rebounded after being supported by the 20EMA. It has to break above 13,134 for more upside towards 13,560. Be cautious as both the Stochastic and MACD have given divergence warning. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.

Trading Idea
Sell 12,850 with a stop above 13,100 for 12,400. Entry was filled on 19 Jan.

S&P 500 Index
(CFD Symbol: US500)
Last: 3797
Target price:
Protective stop:

This index has created an all-time high at 3831 on 8 Jan. There is a minor pullback that brought price lower to the 20EMA, but there is a price rebound afterwards. Price is likely to move higher towards 3967 if it able to surpass 3831. Stochastic is falling now but MACD is still bullish.

Trading Idea
Wait for better trading idea

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