U.S. Stocks
Fundamental Analysis:
U.S. stocks closed sharply lower on Tuesday, 1st February 2022, with financial stocks bearing the brunt of the losses for the second day in a row, as the Russia-Ukraine crisis intensified, triggering investor anxiety.
Meanwhile, ten of the 11 sectors of the S&P 500 index fell, with financials leading the decline, down by 3.7%.
The market is currently in a mood of panic, as market investors are unable to price in geopolitical news. So, the sharp price swings are just a purely emotional reaction.
However, given that the U.S. economy is accelerating, the uncertainty will likely be relatively short-lived and it would not be surprising if the market stands firm sometime in the next few weeks when the situation regains clarity.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 33233-line today. If the Dow runs stably above the 33233-line, it will pay attention to the suppression strength of the 33811 and 34088 positions. If the Dow breaks the 33233-line, it will pay attention to the support strength of the 32781 and 32455 positions.
Hong Kong Stocks
Fundamental Analysis:
The three major indexes of Hong Kong stocks fell collectively. The Hang Seng Index (HSI) fell 0.85%, the Hang Seng China Enterprises Index (HSCEI) fell 0.30%, and the Hang Seng TECH Index (HSTECH) fell 0.47%.
Large technology stocks were wildly divided. Baidu, Inc. (9888.HK) opened up by more than 9% higher after the results, Meituan (3690.HK) rose by 2%, NetEase, Inc. (9999.HK) plunged by nearly 5%, and Tencent Holdings Limited (0700.HK) fell by nearly 1%.
Yesterday’s strong auto stocks opened lower across the board, XPeng Inc. (9868.HK) fell by 5.5%, while domestic housing stocks, gas stocks, sporting goods stocks, insurance stocks, home appliances stocks all fell.
On the other hand, international oil prices continued to rise, oil stocks strengthened significantly, as drug stocks, non-ferrous metal stocks mostly rose with Sinopharm Group Co., Ltd. (1099.HK) rising about 3%.
United Company RUSAL (0486.HK) opened down by nearly 15% at HK$3.99, and has fallen more than 50% in the past eight trading days.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 Index focuses on the 22785-line today. If HK50 can run stably above the 22785-line, then pay attention to the suppression strength of the two positions of 23294 and 23818. If the HK50 strength breaks below the 22785-line, then pay attention to the support of the 21450-line.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the suppression strength of the 15184-line today. If the A50 runs stably below the 15184-line, then pay attention to the support strength of the two positions of 14669 and 13983. If the A50 strength breaks above the 15184-line, it will open up further upward trend. At that time, pay attention to the 15666-line of suppression strength.
Risk Disclosure
Trading in financial instruments involves a high degree of risk due to fluctuations in the value and price of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.
Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with us. You should seek independent professional advice if you do not understand the risks disclosed by us herein.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
