Market News
- U.S. stocks were lower after the close on Thursday, as losses in the Technology, Financials and Industrials sectors led shares lower. Dow Jones slid 622 points, S&P 500 was down 94 points and Nasdaq Composite lost 407 points.
- U.S. Secretary of State Antony Blinken has accepted an invitation to meet with Russian Foreign Minister Sergei Lavrov late next week provided Russia does not invade Ukraine, the U.S. State Department said.
- St. Louis Fed president James Bullard on Thursday reiterated his call for the Fed funds rate to be raised to 1% by July to combat stubbornly high inflation and Fed funds futures price about a 1/3 chance of a 50 bps hike next month to begin.
Market Views
- Asia Pacific stocks were mostly down on Friday morning, extending a selloff as the ongoing tensions over Ukraine decreased investors’ risk appetite. Hang Seng index dived 117 points and Nikkei 225 index fell 100 points.
- Selling pressure eased in Asian markets after the U.S. Secretary of State agreed to a meeting with Russia’s foreign minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 34,700
Last: 34,921
Target price: 35,500
Protective stop: 34,100
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
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: 24,686
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: 14,293
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: 4411
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
Buy 4365 for 4480 with a stop below 4320.
