U.S. Stocks 

Fundamental Analysis: 

Major U.S. stock indexes closed lower on Monday, 14th November 2022, led by real estate and non-essential consumer goods stocks, as investors digested statements from Federal Reserve officials about plans to raise interest rates and looked for the next catalyst after last week’s big stock market rally.

Earlier in the day, the market sawed above and below the flat line, with losses accelerating near the end of the session as the focus turned to the Producer Price Index report due out on Tuesday, with the market highly sensitive to inflation data.

Earlier Monday, Fed Vice Chairman Brainard said the Fed will likely slow the pace of interest rate hikes soon.

This has boosted stock market sentiment to some extent.

This comes after Fed Governor Waller said on Sunday that the Fed may consider slowing the pace of rate hikes at its next meeting, but this should not be seen as a “softening” of its commitment to lowering inflation.

The S&P 500 posted its biggest one-week percentage gain since the end of June last week, and the tech-dominated Nasdaq posted its best one-week performance since March.

There will be more speeches from Fed officials later this week, along with a slew of data due out, including retail sales and housing market data, as well as earnings reports from major retailers.

Within the S&P 500 sector, real estate stocks fell 2.7%, while non-essential consumer goods stocks fell 1.7% and financials fell 1.5%.

In corporate news, Amazon fell 2.3% after The New York Times reported Monday that it plans to cut about 10,000 business and technology jobs starting as soon as this week, citing people familiar with the matter.

Biogen and Eli Lilly rose 3.3% and 1.3%, respectively, after a trial of a new drug for Alzheimer’s disease by Swiss rival Roche failed to meet expectations.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow pays attention to the 33811-line today. If the Dow runs stably above the 33811-line, then pay attention to the suppression strength of the 34221 and 34477 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The market is currently weighing the Fed’s policy direction, and the three major U.S. stock indexes lower in late trading overnight.

This morning, Hong Kong’s major indices diverged. The Hang Seng Index (HSI) rose 0.26%, at 17665.8 points, Hang Seng TECH Index (HSTECH) fell 0.14%, at 3549.26 points, and the Hang Seng China Enterprises Index (HSCEI) rose 0.11%, at 5986.56 points.

On the market, large technology stocks rose and fell, Baidu, Inc. (9888.HK) rose 1.47%, Tencent Holdings Limited (0700.HK) rose 0.54%, JD.com, Inc. (9618.HK) fell 1%, and Meituan (3690.HK) fell slightly by 0.5%.

Most of yesterday’s big gains in domestic housing stocks and property management stocks retraced, with Country Garden Services Holdings Company Limited (6098.HK) down nearly 11%, after once soaring 50% yesterday.

Food stocks, power stocks, dairy stocks, sporting goods stocks, domestic insurance stocks and other general declines.

On the other hand, drug stocks continue to be popular, Shandong Xinhua Pharmaceutical Company Limited (0719.HK) opened more than 5% higher, gas stocks, Hong Kong local stocks, building materials and cement stocks most of the strong.

After the continuous surge of Hong Kong stocks, the market atmosphere turned significantly warmer.

HSI rebounded more than 3000 points from the low, some oversold sector stocks on average more than 50% up, forming a good money-making effect.

The short-term strong rebound pattern is obvious, but the momentum consumed too much, need to observe whether the turnover remains enlarged, while beware of continuous sharp rise after the short-term profit-taking pressure.

In terms of operation, observe the position in your hand. If there is a surge in volume or in the short term, you can lock in an appropriate amount of profit. Otherwise, you can continue to hold the stock and wait for it to rise.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 17535-line today. If HK50 can run stably above the 17535-line, then pay attention to the suppression strength of the two positions of 18606 and 19517.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 12336-line today. If A50 runs stably below the 12336-line, pay attention to the support strength of the two positions of 11955 and 11665. If A50 runs above the 12336-line, it will open up further upside space.

Risk Disclosure   
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.  Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and client should therefore be prepared to suffer significant losses when using such trading facilities.   

Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to find out more. 

[Disclaimer]  
This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, make no representation or warranties to the information displayed and Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred as a result of any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.