NASDAQ Composite (.IXIC) at record as IBM soars

NASDAQ Composite (.IXIC) at record as IBM soars

NASDAQ Composite (.IXIC) at record as IBM soars

The S&P 500 and the Nasdaq have scaled new highs as an upbeat forecast from IBM added to optimism over earnings, while China’s efforts to contain a virus outbreak eased worries about a wider financial fallout.

IBM shares jumped 4.1 per cent after it forecast full-year profit above market expectations on the strength of its high-margin cloud computing business.

Technology stocks, which have played a main role in Wall Street’s recent record run, rose 0.8 per cent on Wednesday.

Investors brushed aside fears from China’s new deadly flu-like virus after President Xi Jinping said curbing the outbreak and saving lives was a top priority.

The main indexes retreated from record highs on Tuesday after officials confirmed the first US case of the coronavirus.

Art Hogan, chief market strategist at National Securities in New York, said China’s commitment to control the outbreak seemed to have eased investors’ concerns.

“While the death toll has risen to nine, it feels like affirmation we’re getting out of China is stemming fears that this is turning into an epidemic,” he said.

The outbreak, which revived fears of a pandemic similar to the Severe Acute Respiratory Syndrome (SARS) in 2003, roiled travel and airline stocks on Tuesday, as millions of people prepared to travel for the Chinese Lunar New Year.

Netflix’s shares gave up gains to trade 3.1 per cent lower after the streaming video pioneer beat estimates for quarterly subscription growth, but warned of a tough first quarter.

“Being in the fourth-quarter earnings season is going to be the tell. We’re going to find out if we’ve gotten ahead of ourselves or valuations are justified,” Hogan said.

At 10.12am local time, the Dow Jones Industrial Average rose 0.29 per cent to 29,280.61.

The S&P 500 gained 0.36 per cent to 3332.60 and the Nasdaq Composite was up 0.54 per cent at 9421.75.

Among the weak spots was Johnson & Johnson, dropping 1.9 per cent after the healthcare conglomerate forecast full-year profit largely below expectations.

Boeing extended losses, down 0.9 per cent, after announcing further delay in the return of its 737 MAX jets to service.

Advancing issues outnumbered decliners by a 1.74-to-1 ratio on the NYSE and a 1.47-to-1 ratio on the Nasdaq.

The S&P index recorded 94 new 52-week highs and one new low, while the Nasdaq recorded 119 new highs and 13 new lows.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 8,919.18.

The projected upper bound is: 9,544.11.

The projected lower bound is: 9,261.40.

The projected closing price is: 9,402.75.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 85.0202. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 77.72. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 12 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 25 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 12.961 at 9,383.768. Volume was 5% above average (neutral) and Bollinger Bands were 29% wider than normal.

Open     High      Low     Close     Volume___
9,413.6139,439.2899,375.1309,383.768 580,341,376
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 9,279.61 8,833.03 8,212.99
Volatility: 9 10 18
Volume: 609,492,544 575,382,592 551,886,784

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NASDAQ COMPOSITE is currently 14.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 65 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH