Taiwan stocks have been continuously overbought by foreign investors. The daily K-line has been red for five consecutive years. It is only 200 points away from this year’s highest of 17,463 points. The weighted index’s monthly and quarterly lines are about to form a golden cross, and the moving averages have been arranged in a long position. Zhao Pengbo, an analyst at Gude Investment Consulting, believes that from the perspective of chips, technology and fundamentals, as long as the market does not fall below the 17,000-point support, any pullback is a buying opportunity. The top two investment portfolios this week are Xingnenggao ( 6558), Xinshengli (4931), and then selected into Yifei.com (2734), Laoye Zhi (5704), and ALi (3041).
The annual growth rate of the core CPI, which the Federal Reserve attaches most importance to, dropped from 4.1% to 4%, lower than market expectations of 4.1%, and the monthly growth rate dropped from 0.3% to 0.2%, lower than market expectations of 0.3%. Core commodity inflation has bottomed out. The decline in October’s inflation rate was mainly due to falling energy prices. The core inflation rate is still slowly declining.
The probability of another interest rate hike in the future has been significantly reduced to below 5%, and the earliest interest rate cut time has been brought forward to May 2024. The possibility of further interest rate hikes is very low. However, because the decline in core inflation is still quite slow, the market has brought forward the time for next year’s interest rate cut. There is still a lot of uncertainty in May.
Taiwan stocks rose for five consecutive weeks last week, rising 526.28 points, or 3.15%, to close at 17,208.95 points; OTC stocks rose 4.89 points, or 2.24%, to close at 222.75 points. In terms of stocks, first of all, Baixihui, Lanbaihe, and tourism, restaurants and hotels are ushering in the traditional peak season. Hanshe, Fuye, Xintiandi, Shanfu, Yunpin, Phoenix, Yadu, Xiadu, and Laoyezhi performed strongly and should not be chased higher. Only when you encounter a retracement can you buy the best ones. IC design is still a hotly contested area for strategists in the investment portfolio. Xinding, Xunjie, Huaxun, Lingyang, Jinlike, and ALi are buying on dips. In addition, at the Biotechnology and Medical Technology Exhibition in December, special attention should be paid to Changjia Intelligent, Anker, and Yaohua Medicine, which have the dual theme of biotechnology + AI.