U.S. Stocks 

Fundamental Analysis: 

U.S. stocks plunged on Friday, 15th October 2022, as worsening inflation expectations kept concerns that the Fed’s aggressive path of rate hikes could trigger a recession, while investors digested the initial results of the earnings season.

Stocks opened higher on the last trading day of a turbulent week, then reversed after data from the University of Michigan showed consumer confidence improved in October, but inflation expectations worsened as gasoline prices moved higher.

Retail sales data also showed consumer resilience.

Fed officials were largely unanimous in their comments on the need to raise interest rates, with St. Louis Fed President Bullard saying in an exclusive interview with Reuters that recent CPI data made it reasonable to continue “front-loaded” through a larger 75 basis point hike, although that did not necessarily mean rates needed to be raised above the central bank’s latest forecast level.

Friday’s decline marked the 37th time this year that the S&P 500 has posted a gain or loss of at least 2%, compared with only seven such trading days in all of 2021.

For the week, the Dow rose 1.15%, the S&P 500 fell 1.56% and the Nasdaq dropped 3.11%.

Companies reporting earnings began to increase, with the bank stock index edging up 0.03% after JPMorgan Chase, Citigroup and Wells Fargo reported quarterly results, with the three banks up 1.66%, 0.65% and 1.86%, respectively.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 29538-line today. If the Dow runs steadily above the 29538-line, it will pay attention to the suppression strength of the 30083 and 30350 positions. If the Dow runs steadily below the 29538-line, it will pay attention to the support strength of the 29204 and 28809 positions.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks closed lower across the board last Friday with the Nasdaq down more than 3%, and Chinese stocks were down for 5 weeks in a row.

Hong Kong stocks opened sharply lower today, the Hang Seng Index (HSI) fell 0.65%, the Hang Seng China Enterprises Index (HSCEI) fell 0.56%, the Hang Seng TECH Index (HSTECH) fell 1.47%.

On the market, large technology stocks fell significantly, Baidu, Inc. (9888.HK) fell more than 5%, JD.com, Inc. (9618.HK) fell nearly 4%, Meituan (3690.HK), Tencent Holdings Limited (0700.HK), ALIBABA (1688.HK), and Kuaishou Technology (1024.HK) are down.

Auto stocks continue to fall, led by the new power of car-making lower, XPeng Inc. (9868.HK) fell 7.45%.

Sporting goods stocks, gambling stocks, domestic insurance stocks, domestic housing stocks and property management stocks have fallen, last Friday’s big rise in biotechnology stocks part of the retracement.

On the other hand, home appliance stocks, building materials and cement stocks, gas stocks are strong, retail stocks, oil stocks most of the rise.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 17535-line today. If HK50 can run stably above the 17535-line, then pay attention to the suppression strength of the 18606 and 19517 positions. If the HK50 runs below the 17535-line, then pay attention to the support strength of the 16664 and 15995 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 12733-line today. If the A50 runs steadily below the 12733-line, it will pay attention to the support strength of the two positions of 12423 and 12260. If the A50 runs above the 12733-line, it will open up further upward space. At that time, pay attention to the two positions of 12945 and 13157.

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