The three major US stock indices are high, and the Dow and S&P 500 indices have repeatedly risen and reached record highs. The market is watching the upcoming results of many major US technology stocks and the Federal Reserve's interest rate meeting this week, as well as Friday's non-farm payrolls data.
At the same time that the indicator hit its peak again, Hong Kong stocks opened lower than 16,000 points this morning, and closed at 15,764 in the midday period. The index continued to weaken and lead the decline. China and specialty stocks, which were overlooked by the market, also pulled back. The A shares fell again yesterday and fell again today. The Hang Seng Index completely offset the favorable factors of US stocks breaking their historical peak. Hong Kong stocks are getting farther and farther away from the periphery. The A-share situation is getting closer and more detrimental to the future of Hong Kong stocks.
The Hong Kong High Court issued a winding-up order for China's Evergrande Group on Monday (January 29). Market analysts believe that this move may put new pressure on the Chinese financial market and real estate market. However, the Evergrande incident was anticipated by the market and has been fully reflected in the market over the past year. The sharp decline in Hong Kong stocks today should be another political factor.
If you look at the downward trend in Hong Kong stocks at the beginning of this year, the most similar history is that at the beginning of 2016, the first low in 2016 occurred on January 21, then rebounded and then fell again, and fell below the bottom once more after the Lunar New Year, when there was a real recovery.
Looking at this year's low of 14,794, the rebound date is similar to 2016. If you keep up with the pace, this time it may only actually bottom out in early February or even after the Lunar New Year.
After a few days of rebound last week, is the market happy to imagine a bull market? Actually, it's just wishful thinking.
The author wrote earlier: Hong Kong stocks only rebounded and did not have a bull market during the losing cycle.
[Author Profile] Option Jack:
Senior full time trader in the international market, 32 years of practical experience in futures and options trading in the market.
Former institutional trader and former senior analytical advisor to investment institutions.
Former chief writer of Wealth Management Weekly's options column and a columnist on economic cycle rights.
Live guest on many famous financial media, including Now Finance Channel, Xincheng Finance Channel, and Strategy King.
Best-selling books: “30 Years of Panbang Hype” and “A Day Without Trading”