U.S. Stocks 

Fundamental Analysis: 

U.S. stocks on Wall Street closed lower in choppy trading yesterday as markets worried about inflation and rising interest rates.

Cisco plunged 13.7% after the networking equipment maker cut its 2022 revenue growth forecast, weighed down by its exit from Russia and a shortage of parts due to the Covid-19 lockdown in Asia.

Apple and chipmaker, Broadcom fell 2.5% and 4.3%, respectively, causing a drag on the S&P 500. S&P essential consumer stocks fell 2%, touching the lowest since December last year, with retail companies bearing the brunt of rising prices hitting U.S. consumers’ purchasing power.

The S&P 500 fell about 18% from its record closing high set on 3rd January 2022, as investors adjusted for strong inflation, geopolitical uncertainty stemming from the war in Ukraine and tighter financial conditions due to the Federal Reserve’s interest rate hike.

By the close of trading, the S&P 500 was down 0.58% to close at 3,900.79. The Nasdaq fell 0.26% to 11,388.50 points, while the Dow Jones Industrial Average fell 0.75% to 31,253.13 points.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is concerned about the 31000-line today. If the Dow runs stably above the 31000-line, it will pay attention to the suppression strength of the two positions of 31661 and 32455. If the Dow falls below the 31000-line, it will pay attention to the support strength of the two positions of 30350 and 29538.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks plunged overnight, after a brief rebound, again frightened by the risk of high inflation and stagflation. The Nasdaq in the high-tech concentration camp fell by nearly 4%.

That said, the foreign wind and waves are high, and Hong Kong stocks were not spared yesterday. The Hang Seng Index (HSI) fell below 20,000 points intraday and the Hang Seng TECH Index (HSTECH) plummeted by more than 4%.

The rebound, which had picked up a little, seems to have been brought down strongly once again. The general market is down, and the recent speculation of the growth sector, inevitably face downward pressure again.

Yesterday, Hong Kong stocks plunged, mainly due to the negative impact of the earnings of large manufacturers. The Internet sector occupies a relatively large weight of Hong Kong stocks. Once there is a large negative impact, the results of the stock price plunge will directly bring down the Hang Seng Index and Hang Seng Technology Index.

The focus of market attention now lies in some of the recent rebound in the hype lines. In this macro environment now, will it continue to go up or down?

Take the most recent hype of the auto industry chain as an example, the reason for the hype are probably as follows:

First, the epidemic in Shanghai has slowed down, and the automobile industry chain, which has been plagued by the epidemic for a long time, is resuming work and production in an orderly manner.

Second, in terms of policy, the state on the promotion fee released a more positive attitude, and the market is also looking forward to the launch of a new round of “car to the countryside “, especially electric vehicles. Although the number of cars in rural area is not low, and electric vehicles are relatively low, but the room for growth is worth looking forward to.

Third, car sales have fallen too much before, with poor performance, and the stock price fell deeply. Now we are facing changes in future expectations, there is a technical rebound, coupled with the periphery of the negative impact of interest rate hikes gradually recede, and the funds re-entering the growth sector.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support of the 18606-line.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12733 and 12328. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13496 and 13983.

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