Nasdaq hit record highs on Pfizer vaccine approval. US stocks edged up on Monday, 23 August 2021, and the Nasdaq reached an all-time closing high as sentiment was boosted by full US Food and Drug Administration (FDA) approval of Pfizer Inc’s COVID-19 vaccine. Meanwhile, market participants looked ahead to the Jackson Hole symposium expected to convene later this week.
All three major US stock indices ended the session sharply higher, with the S&P 500 in the session’s final minutes, just failing to hold what would have been a record-high close.
“This has been the script all along. We make new highs, pull back, and then we’re off to the races again. That tells me the fundamentals are in place, There are worries out there, but it’s hard to keep this market down,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
The FDA granted full approval to the COVID-19 vaccine developed by Pfizer Inc and BioNTech SE in a move that could accelerate inoculations in the United States.
“Full approval means that there’s most likely going to be more mandates, more companies will mandate that you have to get the vaccine in order to get back to the office,” Cardillo said. “I don’t think this will get all the doubters vaccinated, but this news today will probably drive [the vaccination rate] closer to 75%.”
Data released on Monday, 23 August 2021, painted a “Goldilocks” portrait of an economic recovery headed in the right direction, but not enough to warrant a change in the Federal Reserve’s dovish monetary policy, which helped feed investors’ risk appetite.
From the graph above, the Dow is formed in a short period of time with a push-type 5-wave structure. It is currently in the middle and late stages of the formation process of the third wave, and the strength has been slightly lacking. Therefore, the future market will focus on the fourth wave, which is the stock callback, and the formation process of the rising fifth wave that follows it.
The future market should focus mainly on the 35110 line. As long as the Dow does not fall below the 35110 range, it will still maintain the bullish trend and look for the opportunity to intervene again after the fourth wave retracement stabilizes. Therefore, it is necessary to pay attention on the support of 35346, 35226, and 35110 lines. On the top, focus on the strength of the re-suppression of the historical high of the 35601 position.
Once the Dow falls below 35110, it is possible to open up further downward revision. At that time, pay attention to the support of the 34990 and 34724 lines.
Hong Kong Stocks
Hong Kong stocks opened higher, led by technology stocks. The Hang Seng Index (HSI) opened up 319 points or 1.3% higher, sitting at 25,428; the National Index opened up 122 points or 1.4% higher, staying at 8,938; the Hang Seng Technology Index opened up 150 points or 2.5% higher, settling at 6,171.
On the intraday market, pharmaceutical stocks were strong, WuXi Biologics opened sharply 8% higher, Fosun Pharma rose by 5%, with JingDong Health and Shiyao Group increased as well. In addition, gambling stocks, sporting goods stocks, paper stocks, oil stocks, semiconductor stocks, and dairy products stocks recorded gains. Meanwhile, PetroChina opened more than 3% higher.
Large-scale network stocks continued from yesterday’s rebound, with JingDong Health up by more than 5%, NetEase and Baidu up by more than 4%, Tencent, Alibaba, and Kuaidi all rose by 3%; gas stocks performed the worst, ENN Energy opened nearly 7% lower, and power stocks and real estate stocks weakened. Xianruida medical fell by 23% on the first day of listing, and closed down nearly 25% in the dark market yesterday.
On HK50, we continue to focus on the 24469 line, as it remains its bullish trend. Meanwhile, pay attention to the suppression strength of the 25816 line. Once the strength falls below the 24469 line, attention should be diverted to the support of the 24029 position.
FTSE China A50 Index
On A50, continue to focus on the 14469 line today. If the A50 runs above the 14469 line, it will still maintain the bullish trend. Then, pay attention to the suppression strength of the 15184 line. Once it falls below the 14469 line, shift your focus to the support of the 13983 line.
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