📈HSI Rebound Needs Stimulus From National Party Congress💵💵💵
Just as we thought all might turn around for the HSI when it opened with a bang & going all green🌱🌱🌱 on 3/1 (Wed), the HSI immediately retreated 0.92% on 2/3 (Thu) as higher 🇺🇸 yields amid fears the Fed will keep raising interest rates to combat sticky inflation. This broke the hopes of HSI rebounding after registering its biggest daily gain in nearly 3 months on 3/1 (Wed) when it jumped 4.2% on the back of unexpectedly robust readings from 🇨🇳’s manufacturing purchasing managers' index (PMI) surveys.
⭐️The manufacturing PMI shot up to 52.6 from 50.1 in Jan, according to 🇨🇳's National Bureau of Statistics, above & 50-point mark that separates expansion & contraction in activity🥳 The PMI far exceeded an analyst forecast of 50.5 & was the highest reading since April 2012🥳🥳
⭐️Non-manufacturing PMI was 56.3 rather than the 54.9 estimated👍
⭐️Composite PMI was 56.4 against 52.9 prior👍
⭐️The Caixin manufacturing PMI, a survey of smaller Chinese firms, also registered a solid beat of 51.6 instead of the expected 50.7👍
⭐️The bounce comes after it was unable to penetrate below the 200-day SMA & that could continue to provide support near the recent low of 19,664. Further, support may lie at the prior lows of 19,338 & 18,917. The 100-day SMA is near the latter & might lend support.
⭐️On the topside, resistance could be near the 21- & 55-day SMAs in the 20,750 – 20,930 area.
🤔💭My Thoughts:
(1) As enthusiasm faded over 🇨🇳's economic reopening, the positive manufacturing PMI provided some support for economic recovery, but more is needed for 🐂🐂🐂 to push the HSI into further recovery & 🇨🇳's annual meeting of the National Party Congress (NPC) this weekend may well be the catalyst❣️
(2) Economic targets are expected to be set & new top economic officials are to be elected, so fellow 🐯🐯🐯 do keep a close watch on 🗞🗞🗞 about the NPC meeting outcomes &
possible stimulus announcements❣️
(3) If economic stimulus packages are announced, & the HSI breaks 20,930 points on these 🗞🗞🗞, I’ll add more HKEX shares to prepare for the further HSI recovery😉
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