To The Moon

As we started counting down to 01 Jan 2024, it is with the hope that the US market will close off 2023 on a brand new high.

Stocks inched higher on Wed, 27 Dec 2023 amid a short trading, with few catalysts and official economic reports to drive market action.

By the time market called it a day:

(1) DJIA: +0.30% (+111.19 to 37,656.52).

• Best performing index of the day !

(2) S&P 500: +0.14% (+6.83 to 4,781.58).

• The 500 index is near an all-time high; just shy of a few points to close at a new record.

• It is also heading for its 9th straight week of gains, marking its best run since 2004.

(3) Nasdaq: +0.16% (24.60 to 15,099.18).

For the record, all 3 major indexes averages are up double digits:

• DJIA : upped > +13%.

• S&P 500: upped > +24.0%

• Nasdaq: upped > +44%.

As we prep for the 2nd last trading day of 2023, the 3 major indexes’ future indicators are painting a shaky start.

Both Dow and 500 index are starting with a marginal correction; while the Tech index is ready to power to another high; having breached the 15,000 resistant level on a few occasions in 2023.

On a happy note, I am very glad to learn that $NIO Inc.(NIO)$ managed to cross the $9 per share market; just as I had in my 11 Dec 2023 post. (see below)

• Time to invest in NIO before it's $9 or higher ? Click title to read !

On 26 Dec 2023, NIO peaked at $9.42 per share after news that CYVN Holdings LLC, a specialist investment vehicle majority owned by the Abu Dhabi Government decided to add onto their stake in NIO.

With the latest $2.2 Billion injection, CYVN owns approximately 20.1% of NIO.

With a bigger working coffer, it is hoped that NIO will continue to focus on production ramp up to drive down the unit manufacturing cost of its EV.

On 27 Dec 2023, NIO formally announced that it has closed the US$2.2 Billion strategic equity investment from CYVN.

And both parties will continue to work closely and jointly to pursue strategic and technology collaborations in international markets.

On 23 Dec 2023, NIO held its annual NIO-day at China’s ancient city of Xi’an.

It used this occasion to introduce a new vehicle – the ET9 sedan.

It will be NIO’s “executive flagship” offering, expected to hit the market in early 2025.

It will also be NIO’s entry into the ultra-luxury automobile segment, with a focus on competing against the Porsche Panamera and the upscale S trim from Mercedes-Benz.

$Deutsche Bank AG(DB)$ analyst Edison Yu iterated that in a best-case scenario, ET9 can generate incremental excitement around the brand and act as a halo vehicle.

Tactically, the key for the stock will be boosting sales volume after the big sales force revamp.

Analyst reiterated a Buy rating on NIO, alongside an $11 price target.

This implies a +18% upside.

• The recent and additional investment by CYVN is really a shot in the arm for NIO.

• Compare with $Alibaba(BABA)$ trimming its stake in $XPeng Inc.(XPEV)$ to the tune of $391 Milliion.

• NIO’s management should really use this new investment wisely, to propel the NIO brand to greater heights.

• Do you think US market will be able to scale even higher today?

• Do you think NIO will hit $11 by Q1 2024 or sooner ?

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