- U.S. stocks reversed late Tuesday, with the S&P 500 and the Dow whipsawing to positive territory by the closing bell in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy. Nasdaq was the only major indexes to lose ground on the day.
- Market-leading growth stocks, which thrived amid pandemic-related lockdowns, weighed on stocks for much of the day as investors favoured shares that stand to gain most as ongoing vaccine deployment allows economic restrictions to be lifted.
- Fed Chair Jerome Powell pushed back against concerns that the central bank’s economic support increased the risk of spiralling inflation, and insisted that the central bank’s accommodative monetary policy would remain in place for “some time.”
- Shares traded lower across Asia-Pacific markets on Wednesday morning as investors turned cautious, despite remarks overnight from Fed Chair Jerome Powell that attempted to ease some worries around higher interest rates and inflation. Hang Seng index slid 208 points and Nikkei 225 index fell 220 points.
- Oil prices fell in early trade on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 31,300
Last : 31,533
Target price: 31,700
Protective stop: 31,110
The recent price movement for this index were relatively small. It could now be consolidating within a Flag pattern. The 20EMA is acting as support at 31,300. Stochastic is still strong at the overbought region. MACD is also bullish despite the bearish crossover that hints of a bearish trend. Price has to breakout from the Flag and to surpass its all-time high of 31,724 for more upside.
Buy 31,300 for 31,700 with a stop below 31,110. Entry order was filled on 18 Feb
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 30,650
Last : 30,260
Target price: 29,900 Filled
Protective stop: 31,105
Price has been hovering around the gap support that was created on 16 Feb. With the divergence warning given from both the MACD and Stochastic, a violation of the 20EMA of 29,800 would hint for a price decline. Stochastic is falling now. MACD is still bullish but a bearish crossover is likely
Sell 30,650 for 29,900 with a stop above 31,105. Entry order was filled on 19 Feb. Profit target was filled on 23 Feb.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,213
Target price :
Price has been declining after a bearish Engulfing candlestick pattern formed on 16 Feb. It hit its previous low support zone, which is also the Fibonacci 38% correction point of Nov-Feb 21’s price swing last night and ended the day with a potential Hammer candle. Let’s see if this index can hold at this support and rebound to move higher again. Stochastic is falling now but MACD is still bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3880
Target price: 3950
Protective stop: 3835 Triggered
A Doji indecision candlestick pattern was formed last night after price hit the Fibonacci 50% correction point of Feb 21’s price rally. It is also hovering around the 20EMA support now. Let’s watch out for today’s price formation for a confirmation. Stochastic is falling from the overbought region but MACD is still bullish.
Buy 3880 for 3950 with a stop below 3835. Entry and stop was triggered on 23 Feb.