To The Moon

When I decided to turn in at 1:30am Singapore time, I was already wearing a smile that stretched from ear to ear. Why ?

Because NIO's  $NIO Inc.(NIO)$  price by then had rocketed +17.52% (approx) to $12.25, give or take. It was slightly off the up-until-1:30am peak of $13.60.

Did not investigate the root cause either because noticed both Li Auto ($Li Auto(LI)$ ) and Xpeng ($XPeng Inc.(XPEV)$ ) prices have soared as well.

In fact, XPEV was up +45% (approx) at $10.70 give or take; at around 12:30noon US time.

Was too sleepy to catch Mr Powell's speech 1:30pm (US time) at The Brooking Institution, Washington D.C on the closed to heart topics of Economic outlook, Inflation & the Labour market.

Just as I was switching off the lights, thought to myself - what else could he have said that he hasn't already covered on numerous other occasions.

Not to mention his choir of colleagues whom up until ytd, was still socialising with the media - singing the same tune of 2% inflation rate. With that in mind, the lights went off.

Was I in for a surprise when I played catchup in the morning.

The long and short of it is :

• When FOMC convenes in two weeks, discussion is likely to centre on reducing Dec interest hike's quotient.
• Inference is that 14 Dec's interest hike would likely be the touted 0.5%
• Fed acknowledged that October inflation data had shown reduction. But falling rate is slower than what Fed had expected
• Also, progress of slowing inflation is not across the board. (Think its referring to the different reports data).
• Labour market is still tight (demand) and labour shortage (supply) - prevents wage inflation from achieving the equilibrium
• Three possible causes (a) older workers retiring earlier (b) immigration reduction and (c) other demographic changes
• Most importantly, questions of (1) how much more interest needs to be raised to control inflation and (2) the length of time necessary to hold high-interest-policy at a restrictive level.”

Therein lies the charm and magic of the Fed's chairman - Mr Powell. 

His words provided calm and assurance to the market at the right place and the right time ?

3 Chinese EV stock prices for the Past 5 Days :

NIO share price - past 5 days

LI share price - past 5 days

XPEV share price - past 5 days

Applying logical thinking, I am still trying to wrap my head around the "extreme" stock prices' increases for all three Chinese EV makers.

What could have been the "positive" news coming out from China that gave US retail investors the "confidence" to chase up Nio, Li Auto and Xpeng again ?

Xpev / Li / Nio - Technical chart Moving Averages tabulation

Certainly not the Moving Averages (MA) of the 3 EV makers' technical chart. 

Based on ytd price movement, its above the 50-days MA but not yet above the 200-days MA respectively.  What else is there ?

Referring to the my Posts on the 3 Chinese EV makers' weekly delivery for October and November 2022,  only Li Auto and Nio have been increasing their EVs output. 

Xpeng position #15 (in rank) only delivered a lower quantity of EVs than projection.

Xpeng negative news & Quarterly earnings results

Coupled with the string of bad news and quarter on quarter loss (refer to above) - do you agree that it is puzzling that XPEV share price has gone up by a whooping +47.28% just ytd alone ?  Is this sheer madness ? 

Has everyone throw caution to the wind ytd ? 

What about the fundamentals that we have been "taught" to look out for in a stock prior to making an informed investment into a "well researched blue-chip" ?

Are they still applicable ?

The conclusion I could derived from ytd "surge" is :

• The market wants what the market wants
• Regardless whether the fundamentals are sound or otherwise
• Likely that they are in for the "joy ride" only.
• If you are not as "fast" & "nimble" and you try to emulate them, there is a probability that you may get burnt in the process ?  Yes ?  No ?

Are you going to throw caution tot the wind and join in the bidding race today ?  Or will you stay away ? 

Share your views in the Comments section below ?  Thanks.  Like to know what everyone out there thinks.

Please "Like" this post ok.  Thanks.  The rating is important to me.

Matching song ?  "Joy ride" by Swedish duo "Roxette".  Nice !  Dunno ?  YouTube it.

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