Can Taiwan’s stock market bounce back 20,000 points to defend the battle successfully?Analyst Li Yongnian: Bulls lack confidence

After a sharp rebound of 720 points in two days, the Taiwan stock market stopped at the highest point of 20,165 points. This morning (25th), it fell back by more than 200 points, in a battle to defend the 20,000-point mark! Li Yongnian, a well-known stock market teacher and deputy general manager of Qida Investment Consulting, said in an interview this morning (25th) that the poor financial reports of Facebook and IBM have impacted the Taiwanese stock market, which opened low and fluctuated this morning. Tomorrow, there will be heavyweight financial reports of Microsoft, Google, and Intel, and the start of the The ability to absorb dips in low volatility is not strong, and today’s trading volume is estimated to be only 380 billion yuan, showing that bulls lack confidence. “Taiwan stocks will need to consolidate for at least another day or two.”

Extended reading: 20,000 points are gone again!Taiwan stocks fell more than 200 points, TSMC dropped 13 yuan

U.S. stocks were mixed yesterday. Li Yongnian said that although the Philadelphia Semiconductor Index rose 1%, TSMC ADR fell 0.34%. Moreover, the Taiwan Index futures fell by more than 200 points in the night trading, which put great pressure on the opening of Taiwan stocks today (25th). TSMC and other electronic weight stocks opened at low prices, and some buying orders were also seen entering the market at low prices. For example, after the TSMC 770 was opened, it rebounded to 774 yuan and then fell. The next step is to “observe whether the acceptance is strong enough?”

Today’s trading volume is estimated to be less than 390 billion yuan, and there is little willingness to buy low prices.

Li Yongnian said that it is currently estimated that the trading volume for the whole day today is less than 390 billion yuan, which shows that the willingness to take on dips is not high and the confidence of bulls is relatively low. In this case, he believes that “the market still needs to consolidate for a while, at least about one or two days,” and there is a chance it will continue to rebound.

Microsoft, Google, and Intel will release their financial reports tomorrow morning

But he believes that the most important thing at this stage is to observe the US stock market. Tomorrow, leading high-tech stocks including Microsoft, Google, Intel, etc. will announce financial results. However, this morning, including Facebook and IBM, the financial reports were not as expected, resulting in heavy electronic trading of US stocks. This is also the main reason why the Taipei stock market opened low and fluctuated. Therefore, he suggested first observing the performance of U.S. high-tech stocks tomorrow’s earnings report. If they continue to be weak, “U.S. stocks will form a downward trend,” which may impact the performance of Taiwanese stocks next week. At least the first half of the week will be harder.

What are the indicator stocks today? Li Yongnian suggested that we should still look at electronic equity stocks such as TSMC and Hon Hai. The performance of construction stocks that had a rest in the previous two days was not bad today, which is worth noting.

How do investors operate?

Li Yongnian analyzed that from a technical perspective, the obvious upward pressure on the Taiwan Stock Weighted Index falls on the 10-day line and the monthly line, which is approximately between 200 million and 20,200 points. The pressure in this area is heavier. For the low-end support point, let’s look at yesterday’s market first. Can it be supported near the mid-low point of 19770? He suggested that investors should not rush to buy but wait and see first. It will be safer, but the amplitude of the shock is too great. If you want to intervene, it is safer to connect low and don’t chase the high.

META, the parent company of Facebook, announced its first-quarter results early this morning. Although it exceeded expectations, the report predicted an increase in AI research and development spending. In addition, the virtual product business continues to suffer losses. The investment community is worried that the expenditure will be huge and the expenditure will be even greater next year. META expects full-year capital expenditures to be between US$35 billion and US$40 billion, more than the previously expected US$30 billion to US$37 billion. The operating losses of Reality Labs, which develops the virtual product market, will increase significantly compared with the same period last year. After the market closed, the stock price plunged 19% or close to US$100, reaching a minimum of US$399.02, falling below the US$400 mark.

IBM’s first quarter financial report was also disappointing, with revenue of US$14.46 billion, an annual increase of only 1%, lower than the US$14.55 billion expected by the outside world. Demand for its second largest consulting business continues to be sluggish. The company also announced that it will spend 6.4 billion It acquired cloud software company HashiCorp with US dollars. After the financial report was released, the stock price fell 8.5% after hours.

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• Yahoo Finance special correspondent Ye Yiru: With more than 20 years of experience in mainstream financial media, from the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small business groups, and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care about you.