- U.S. stocks were higher after the close on Tuesday, as gains in the Healthcare, Utilities and Oil & Gas sectors led shares higher. Dow Jones rose 0.56% to hit a new 1-month high, while the S&P 500 added 0.74%, and the Nasdaq Composite climbed 0.71%.
- The positive mood saw U.S. bond yields rising further, with the 10-year U.S. Treasuries yield climbing to 1.662%, a high last seen in May. Shorter yields dipped as traders took profits for now from bets that the U.S. Fed will turn hawkish at its upcoming policy meeting in early November.
- Fed Governor Christopher Waller said that although the U.S. central bank will likely begin asset tapering in November 2021, interest rate hikes are probably “still some time off” as he expects inflation to moderate.
- Asian shares advanced on Wednesday morning on rising optimism about the global economy and corporate earnings while the yen slipped to a four-year low on the dollar. Hang Seng index surged 359 points and Nikkei 225 index gained 45 points.
- Investors’ focus also remains on China’s regulatory tightening and China Evergrande debt woes, as well as the coal market as authorities study ways to curb rising prices and prevent shortages.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,455
Price penetrated above its recent price resistance after breaking out from a Flag pattern, which is one of the continuation patterns. The 20EMA is rising, suggesting a bullish trend. We are likely to see price testing 35,628. Stochastic is rising. MACD has turned bullish.
Buy 35,100 for 35,600 with a stop below 34,850.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 25,050
Last : 26,160
Target price: 25,900 Filled
Protective stop: 24,650
Price rebounded after forming a Double Bottom chart pattern. It has moved above the 20EMA resistance and the support-turned-resistance zone. It is heading higher to test the upper boundary at 26,820. Stochastic is rising and MACD has turned bullish.
Buy 25,050 for 25,900 with a stop below 24,650. Entry price was filled on 12 Oct. Changed stop higher to 24,850. Profit order was filled on 19 October.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Short @ 14,990
Last : 15,399
Target price : 14,300
Protective stop: 15,200 Triggered
This index has been moving within a rising channel since Sep 2020. Price rebounded after forming a Bullish Engulfing on 13 Oct. It has moved above the 20EMA and we are likely to see price moving higher towards the upper channel resistance. Stochastic is rising, MACD has turned bullish.
Sell 14,990 for 14,300 with a stop above 15,200. Entry order was filled on 14 Oct. Stop was triggered on 18 Oct
S&P 500 Index
(CFD Symbol: US500)
Price broke and closed above the declining trendline resistance last Thursday with a bullish candle. It has moved above the 20EMA as well. As long as price stays above the trendline, we are likely to see price moving higher towards its previous high at 4549. Stochastic is rising, MACD has turned bullish.
Buy 4420 for 4520 with a stop below 4360.