《The Strategic Planning》Currently, the actual holding levels of this column's short-term, medium-term, and long-term securities investment portfolios are 12.5%, 25%, and 27.5% respectively, with all market positions clearly bearish. Undeniably, the recent performance of Hong Kong stocks has not only significantly lagged behind U.S. stocks but also performed worse than most major global stock markets, with no clear signs of improvement in sight. On the other hand, the mainland stock market's performance has also greatly disappointed investors, prompting them to exit and stay on the sidelines. Both the Hang Seng Index and Hang Seng Index futures have fallen to key medium-term support levels and urgently need an official rebound; otherwise, according to wave theory, the market is likely to continue declining, with a high possibility of even testing the starting support level of the medium-term uptrend. In other words, unless bulls successfully regain market control, there remains considerable room for further decline, and investors should therefore adopt a highly cautious approach when betting on an official market turnaround from down to up, avoiding active participation.
There are rumors that Britain is considering following the EU's approach by imposing tariffs on imported Chinese electric vehicles, with rates potentially as high as 45%. The market share of Chinese automakers in Europe is rapidly increasing, reaching a new high of 12%, while the market share of new energy vehicles in the first eight months of this year has also risen to 19%. The Hang Seng Stock Connect Autonomous Driving Theme Index has recorded four consecutive bearish candles on its daily candlestick chart, with the index declining for four consecutive trading days, reaching 2679 and heading toward testing the historical low of 2460 set on February 5, 2024. All five major technical indicators on the chart are bearish, with none showing signs of improvement. The lower Bollinger Band support is under severe test, while the STC is beginning to show severe oversold conditions. On the weekly candlestick chart, the index has plunged for seven consecutive weeks, recording seven consecutive bearish candles. It is evident that the short-term and medium-term outlook for this sector is not optimistic.
By Benny Leung, Chief Consultant of Economic Times and Trading Times (Website: www.BennyLeung.com)
*Articles published in《Economic Times》, signed or unsigned, represent the personal opinions of the authors and do not reflect the stance of《Economic Times》.《Economic Times》plays the role of providing a free speech platform.
There are rumors that Britain is considering following the EU's approach by imposing tariffs on imported Chinese electric vehicles, with rates potentially as high as 45%. The market share of Chinese automakers in Europe is rapidly increasing, reaching a new high of 12%, while the market share of new energy vehicles in the first eight months of this year has also risen to 19%. The Hang Seng Stock Connect Autonomous Driving Theme Index has recorded four consecutive bearish candles on its daily candlestick chart, with the index declining for four consecutive trading days, reaching 2679 and heading toward testing the historical low of 2460 set on February 5, 2024. All five major technical indicators on the chart are bearish, with none showing signs of improvement. The lower Bollinger Band support is under severe test, while the STC is beginning to show severe oversold conditions. On the weekly candlestick chart, the index has plunged for seven consecutive weeks, recording seven consecutive bearish candles. It is evident that the short-term and medium-term outlook for this sector is not optimistic.
By Benny Leung, Chief Consultant of Economic Times and Trading Times (Website: www.BennyLeung.com)
*Articles published in《Economic Times》, signed or unsigned, represent the personal opinions of the authors and do not reflect the stance of《Economic Times》.《Economic Times》plays the role of providing a free speech platform.
