Summary of content for the week of Jan 8:
1. Week 1 major indexes performance;
2. Week 1 US sector indexes performance;
3.Major indexes weekly charts of support and resistance levels;
4. Sector/Stocks In Focus
U.S
U.S major indexes continued to march higher to record highs despite the violence in the U.S Capitol Hill on Wednesday, as markets are on high hopes of more massive stimulus packages after the Democrats secured the Senate majority following its victories in Georgia runoff. Major events and economic data for the week:
1. Energy sector was the top-performing SPX sector as Saudi Arabia made a surprise announcement to cut oil production by 1 million barrels per day.
2. Democrats control across the White House and Congress will pave the way for stimulus packages and also raise corporate tax and increase taxes on high earners.
3. ISM manufacturing data in Dec rose to 60.7, its highest level since Aug 2018. ISM service sector also surprised on the upside, hitting 57.2, its highest in three months. But labor market showed a sharp slowdown as nonfarm payrolls fell in December., its first decline since Apr.
Electric Cars and Bitcoin Surging Higher. Tesla(TSLA) hit 880.02 added 25% this week. Chinese top electric car makers such as NIO Inc(NIO) also added 21% for the week, as Tesla launched its new Model Y on the first day of the new year 2021 with cutting down on its price, attracted massive orders in China. Elon Musk, the CEO of TSLA now world the richest person, overtaking Jeff Bezos from Amazon(AMZN).
Bitcoin hit a new high, closed at 40535 this week, added nearly 40% from the previous week. Bitcoin-related stock and ETF such as Marathon Patent(MARA) +153% this week to 26.39, RIOT Blockchain(RIOT)+57% to close at 26.59 this week.
China/HK
China's SSE index began the year on a very strong note, SSE index closed a multi-year new high since Jan 2018. Technically, SSE index finally had a bullish breakout from its five-month sideway consolidation range, further upside expected. Foreign funds continue to flow into China's bond and stock markets given the strong yuan and high yield as compare to the rest of the world.
HSI index rallied 2nd week to new high since Feb 2020, very bullish. The HSI index expected to play catch-up in 2021 after a poor performance in 2020.
The New York Stock Exchange(NYSE) reversing itself for 2nd time in one week, have decided to go ahead with delisting three Chinese telcos. The U.S government is also considering adding Alibaba(BABA, 9988.HK) and Tencent(700.HK) to its blacklist. But bargain hunters rushed in to buy up SMIC(981.HK) which blacklisted by U.S this week, pushing it to close at 25.0 hkd, a new high since Nov 2020.
Singapore
STI recorded its best weekly gain never seen for a long time. Added 5.25% this week and was the best performing index(refer to below major indexes weekly performance table). Singapore three bank led the rebound, it's expected STI will catch-up in the new year 2021 after being the worst performing index last year. The immediate target is 3100 level which is its major downtrend line resistance.(refer to below major indexes weekly charts)
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