Market News
- Wall Street lost more than 1% on Thursday, with Nasdaq leading the declines, as evidence of a tight labour market eroded hopes that the Federal Reserve could pause its rating hiking cycle anytime soon as it keeps focused on inflation.
- U.S. ADP private payrolls report showed employers added 235,000 jobs in December despite the Fed’s attempt to tame inflation and suggesting there is room for higher rates. Another report showed weekly jobless claims fell last week.
- The home goods retailer, Bed Bath & Beyond, plummeted 24% after reporting it’s running out of cash and is considering bankruptcy, citing weaker-than-expected sales. The company said it is exploring financial options including restructuring, seeking additional capital or selling assets
Market Views
- Asian markets rose on Friday morning as investors braced for crucial U.S. jobs data later in the day that should provide clues on how aggressive the Fed will be in tightening policy. Hang Seng index gained 85 points and Nikkei 225 index jumped 154 points.
- Japan’s services sector activity showed a fourth-consecutive month of growth in December as the nation’s central bank maintains its ultra-dovish policy, in contrast with its hawkish global peers.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation: Short @ 33,350
Last: 33,001
Target price: 32,400
Protective stop: 33,850
Outlook
Price was capped by the Fibonacci 38% correction point, which is also the support-turned-resistance price level. The 20EMA is acting as resistance as well. A violation of 32,744 will likely to bring price lower to 32,360.
Trading Idea
Sell 33,350 for 32,400 with a stop above 33,850. Entry position was filled on 4 Jan.
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 14
Target price:
Protective stop:
Outlook
This index has turned bullish as price is trading above the 20EMA. The 20EMA is rising. We are likely to see price testing its overhead price resistance zone at 14,605. Stochastic is rising and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 10,783
Target price:
Protective stop:
Outlook
Nasdaq is very bearish with the 20EMA is acting as the first resistance point at 11,073. It is trading near to the triple bottom support zone, but it has to penetrate above the 20EMA to move higher. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Sell 11,100 for 10,700 with a stop above 11,300.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7656
Target price:
Protective stop:
Outlook
Price rebounded after being supported by the 20EMA support. It managed to penetrate above its previous price high resistance. A return move to retest 7616 could be possible before its next rally. Stochastic is rising and MACD is bullish.
Trading Idea
Wait for better trading idea.
