Stocks Close Out Solid November

 Summary of content for the week of  Dec 4:

1. Week 49 major indexes performance;

2. Week 49 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

4. Major Indexes Monthly Performance for November

U.S

U.S major indexes closed into record highs by Friday. The DJI closed out November with its best monthly performance since 1987, with 11.8% gain., while SPX and Nasdaq(COMP) also had one of their best monthly gains with 10.8% and 11.8% respectively. Refer to below major indexes monthly performance table for Nov.

Investors anticipating imminent vaccine arrival and rising hopes for a new round of fiscal stimulus also appeared to boost sentiment as jobs and other economic data show economic recovery slowing down. 

Among 11 major SPX sectors, Energy(XLE) shares bounced back after OPEC and other major oil producers reached an agreement to ease output, while Utilities(XLU) shares lagged. Refer to below SPX sector indexes ETF weekly performance table for details.

Technically, all three major indexes are in a nice steady uptrend, there are no signs of immediate reversals. For technical traders, we will just "Follow the trend until it bends".

China/HK

China Shanghai Composite Index(SSE) posted its third straight weekly gain, aided by solid economic data. 

U.S announces new investment restrictions on Chinese companies and newly added four more state-owned enterprises(SOEs) to their list including 1) Semiconductor manufacturing Internation Corp(SMIC, 0981.HK); 2)China National Offshore Oil Corp(CNOOC, 0883.HK); 3)China Construction Technolgy Co. Ltd; 4) China International Engineering Consulting Corp.(CIECC), the additional four more brings the total number of blacklist firms to 35.

Nevertheless, overseas investors interest in Chinese assets remained buoyant, as evidenced by an increase of foreign buying of Chinese bonds in November, also the renminbi(CNY) continues to appreciate against the USD in currency markets. 

Technically, the SSE index has been trading within its five-month sideway consolidation price range top, bullish bias. The HSI index closed just off 27,000 level after a four-week rally.

Singapore

STI index posts strong monthly gain since 2009, added a remarkable 15.8% in November. On weekly basis, it closed the first week down by profit-taking after a four-week rally. The index appears a lagger with a -12% YTD return, as compared to SPX's 15% and SSE's 13% return. Expected the STI will play catch-up, and more upside room even after Nov's stunning rally. Immediate technical support to watch is 2790 which is its 20dma.