U.S. Stocks
Fundamental Analysis:
While rising inflation expectations were the immediate cause of the plunge in U.S. stocks, another force also played a role in their second-longest weekly decline since last May: overvaluation.
As earnings growth expectations for the S&P 500 grow increasingly weak, stocks are valued near higher levels than they have been in nearly 30 years, putting them at risk of a sharp downside.
The stock market bubble could pop at any time as inflation further fuels the Fed’s determination to aggressively raise interest rates.
The S&P 500 accumulated a 2.7% decline last week, extending its downside trend and potentially erasing all of its 2023 gains in the aftermath.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 32781-line. If the Dow runs stably above the 32781-line, then pay attention to the suppression strength of the 32975 and 33233 positions.
Hong Kong Stocks
Fundamental Analysis:
U.S. inflation is expected to strengthen the depreciation of the yuan, Hong Kong stocks continue to retreat.
The three major indices opened sharply lower.
The Hang Seng Index (HSI) fell 0.94% below the 20,000-point mark for the first time since 3rd January, the Hang Seng China Enterprises Index (HSCEI) fell 0.88%, the Hang Seng TECH Index (HSTECH) fell 1.2%.
On the market, large technology stocks all fell, Alibaba Group Holding Limited (9988.HK) fell more than 2%, while Kuaishou Technology (1024.HK), Meituan (3690.HK), JD.com, Inc. (9618.HK), Tencent Holdings Limited (0700.HK), and NetEase, Inc. (9999.HK) were down.
Domestic insurance stocks fell significantly, while gold stocks, biotechnology stocks, auto stocks, and sports stocks fell generally, with XPeng Inc. (9868.HK) falling 3.6%.
On the other hand, the restaurant stocks are strong, after the performance of Haidilao International Holding Ltd. (6862.HK) rose more than 10%, education stocks, pharmaceutical stocks rose in part.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of the two positions of 21450 and 22127.
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