U.S. Stocks 

Fundamental Analysis: 

U.S. stocks rallied on Tuesday, 22nd November 2022, with the S&P 500 closing at its highest level in two and a half months, as Best Buy’s sales forecast allayed fears that high inflation would lead to dismal results during the holiday shopping season, while a rebound in oil prices helped push energy stocks higher.

Retailer Best Buy was the best-performing S&P 500 component, jumping 12.78% after the company forecast a smaller annual sales decline than previously announced and said it believes increased deals and discounts will attract more customers.

Best Buy’s rise helped boost the S&P 500 retail stock index by 1.21%.

The S&P 500 closed at its highest level since 12th September 2022.

Support also came from the energy sector, which climbed 3.18% after falling in the previous two sessions, as Saudi Arabia said OPEC+ was sticking to production cuts, countering Monday’s report that the alliance was considering increasing output, which at one point sent crude prices sharply lower.

OPEC+ is a coalition of oil-producing countries formed by the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia.

Trading was muted on Tuesday and volume is likely to decrease further on Thursday ahead of the Thanksgiving holiday, with U.S. stocks set to close at noon on Friday.

Volume on U.S. exchanges was 9.45 billion shares, compared with an average of 11.75 billion shares traded over the past 20 trading days.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33949-line. If the Dow runs stably above the 33949-line, then pay attention to the suppression strength of the 34221 and 34477 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The three major indices of Hong Kong stocks moved shakily and closed up collectively at midday, with Hang Seng Index (HSI) up 0.42%, Hang Seng TECH Index (HSTECH) up 0.82% and Hang Seng China Enterprises Index (HSCEI) up 0.67%. 

The half-day net southbound capital inflow was 1.165 billion Hong Kong dollars, the market turnover was 56.5 billion Hong Kong dollars. 

On the market, the weighted technology stocks were generally stronger, Kuaishou Technology (1024.HK) rose 4.7%, Alibaba Group Holding Limited (9988.HK) rose 3%, Baidu, Inc. (9888.HK) rose 2.6%, Tencent Holdings Limited (0700.HK), NetEase, Inc. (9999.HK) rose 1%.

Three departments issued a document emphasizing multiple measures to strengthen the foundation of the industrial economy back to stability, infrastructure stocks continue to be active, China Aluminum International Engineering Corporation Limited rose over 18%.

Favorable policies came out together, green power concept stocks collectively strong, China Resources Power Holdings Company Limited (0836.HK) rose over 5%.

Power coal boom up, coal stocks were strong, Yancoal Australia Ltd (3668.HK) rose 4%.

Tobacco stocks, film and entertainment stocks, gold stocks, building materials and cement stocks and other stocks were strong.

In addition, biotechnology stocks and mainland education stocks fell.

Beer stocks, catering stocks, gaming stocks, auto stocks and other consumer stocks continued to weaken.

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 12273-line today. If A50 runs stably below the 12273-line, then pay attention to the support strength of the two positions of 11955 and 11665. If A50 runs above the 12273-line, it will open up further upside space.

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