Market News
- All three major indexes notched solid advances on the day, with tech and tech-adjacent stocks providing the biggest boost and putting the Nasdaq, which gained 2.5%, out front, due to signs of de-escalating tensions along the Russia-Ukraine border which had sparked a risk-on session since Monday.
- Geopolitical heat was turned down a notch after Russia said it had withdrawn some of its troops near the Ukraine border, prompting bullish equities sentiment and causing crude prices to slide on easing supply concerns.
- A report from the Labour Department showed producer prices surged in January at twice the expected rate, reinforcing economist expectations that the Fed will take on stubbornly persistent inflation by aggressively hiking key interest rates.
Market Views
- Asian shares rallied on Wednesday morning as fears of a Russian invasion of the Ukraine this week dissipated after Moscow indicated it was returning some troops to base from exercises, delivering investors a measure of relief. Hang Seng index rose 308 points and Nikkei 225 index gained 564 points.
- U.S. crude was down a notch at $91.98 a barrel after pulling back from a seven-year high hit on Monday. Brent crude was down 0.1% at $93.16 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 34,700
Last: 34,921
Target price: 35,650
Protective stop: 34,100
Outlook
A Bullish Engulfing candlestick pattern was seen last night, giving a sign that this index could rebound in the near term. We would like to see a close above the 20EMA at 35,120 for 35,860 or even higher at 36,950. Stochastic is still strong. MACD is still bearish.
Trading Idea
Buy 34,700 with a stop below 34,100 for 35,650. Entry order was filled on 14 Feb.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 24,668
Target price:
Protective stop:
Outlook
This index is supported by the 20EMA which is acting as support currently. The 20EMA is rising, suggesting the bullish price trend. As long as price moves above the 20EMA, we are likely to see price moving higher. Stochastic is near to the overbought region and MACD remains bullish.
Trading Idea
Buy 24,250 for 25,250 with a stop below 23,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,567
Target price:
Protective stop:
Outlook
This index remains bearish as it has been capped by the falling 20EMA which is acting as resistance currently. Price has to penetrate above the 20EMA for more upside ahead. Stochastic is falling now and MACD remains bearish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4457
Target price:
Protective stop:
Outlook
The price correction was halted at the Fibonacci 62% correction point of Jan-Feb 2022’s rally. As long as the low at 4361 holds, we are likely to see price testing the support-turned-resistance level at 4580 again. Stochastic is falling and MACD remains bearish.
Trading Idea
Wait for better trading idea.
