U.S. Stocks
Fundamental Analysis:
U.S. stocks closed higher on Friday, 15th August 2022, on signs that U.S. inflation may have peaked in July, increasing investor confidence that a bull market may be on the horizon and spurring the S&P 500 and Nasdaq to their fourth straight weekly gain.
The S&P 500 has risen 17.7% from the lows hit in mid-June, with the latest gains driven by data this week that showed slower-than-expected gains in the Consumer Price Index (CPI) and an unexpected year-over-year decline in producer prices in July.
The S&P 500 crossed the much-anticipated technical level of 4,231, indicating that the indicator stock index has recovered half of the ground lost since retreating from the record high set in January.
Some see the 50% retracement as a bullish signal.
The University of Michigan survey showed that U.S. consumer confidence rebounded further in August from record lows earlier this summer, with short-term inflation expectations for U.S. households falling again amid a sharp drop in gasoline prices.
This also boosted optimism.
After a tough start to the year, U.S. companies reported better-than-expected second-quarter earnings, supporting optimism in the U.S. stock market.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 33390-line today. If the Dow runs steadily above the 33390-line, it will pay attention to the suppression strength of the 33811 and 34088 positions. If the Dow runs steadily below the 33390-line, it will pay attention to the support strength of the 32975 and 32781 positions.
Hong Kong Stocks
Fundamental Analysis:
The Hang Seng Index (HSI) opened 0.68% lower, the Hang Seng TECH Index (HSTECH) fell 0.91% and the Hang Seng China Enterprises Index (HSCEI) dropped 0.7%.
Country Garden Services Holdings Company Limited (6098.HK) fell 2.2% to lead the blue chips, while NetEase, Inc. (9999.HK) and WuXi Biologics (Cayman) Inc. (2269.HK) fell more than 2%.
Central China Real Estate Limited (0832.HK) fell more than 3%, and it is expected that the loss attributable to shareholders in the medium term will be about 5 billion to 6 billion yuan.
South Manganese Investment Limited (1091.HK) rose more than 9%, and it is expected that the net profit in the first half of the year will increase by no less than 1900% year-on-year.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 13887-line today. If the A50 runs steadily below the 13887-line, it will pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.
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