Market News
- U.S. stocks gained on Tuesday after a strong October retail sales report and better-than-expected third-quarter results from Home Depot and Walmart signaled the U.S. consumer is still ramping up spending even in the face of rising prices. The Dow ended 54 points higher while S&P 500 index was up 18 points. The Nasdaq index gained 130 points.
- U.S. retail sales rose 1.7% in October, topping consensus expectations of a 1.4% rise, as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods as the ongoing pandemic squeezes supply chains.
- “That inflation story is going to be big for the next six months and we’re going to have a lot of stops and starts on that as it evolves,” said Mike Stritch, chief investment officer at BMO Wealth Management.
Market Views
- Asian stocks mostly declined on Wednesday, as Japan’s exports growth hit an eight-month low. Markets in the U.S. however were lifted on the back of stronger-than-expected retail sales data. The Hang Seng Index and the Nikkei 225 index were both down 80 points at mid-day.
- Virtual talks between U.S. President Joe Biden and Chinese President Xi Jinping late Monday U.S. time appeared to signal a step in the right direction but failed to produce any major, market-boosting news.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short @ 36,400
Last : 36,133
Target price: 35,650
Protective stop: 36,450
Outlook
This index had reached a high of 36,565 and has been declining, coming close to the 20EMA support point 35,881. Stochastic continues to decline. MACD had a bearish divergence but remains bullish and is hinting at a bullish price trend. This index will need to break the 20EMA support to continue the decline to the support at 35,500.
Trading Idea
Sell 36,400 with a stop above 36,600 for 35,650. Entry order was filled on 9 Nov. Lower stop-loss to 36,450 on 17 Nov.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,679
Target price:
Protective stop:
Outlook
This index has continued to move higher after staying supported above the 20EMA line. We are likely to see a test of the previous high at 26,307 in the coming days. 20EMA remains bullish and is hinting at a bullish price trend. Stochastic continues to rise after a bullish crossover near the oversold zone. Stochastic is hinting at a price rally. MACD is neutral at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,299
Target price :
Protective stop:
Outlook
This index continues to rise after staying supported above the 20EMA. The rising 20EMA is hinting at a bullish price trend. We foresee this index testing its all-time high again. Stochastic is near the overbought zone but has shown no sign of declining at the moment. MACD remains bullish and is hinting at a bullish price trend ahead.
Trading Idea
Buy 16,150 for 16,450 with a stop below 15,980
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4699
Target price:
Protective stop:
Outlook
This index is likely to test its previous all-time high at 4718. A break above the high will send this index higher. An inability to break above is likely to result in a Double Top chart pattern calling for a decline. The 20EMA remains bullish. Stochastic is in the overbought region but could remain in the overbought zone if the trend remains strong. MACD remains bullish and is hinting at a price rally.
Trading Idea
Wait for better trading idea.
