In today’s briefing:
- Ohayo Japan |Stocks Soar on Debt Resolution/Jobs/China; NUGGET: Where Nvidia Goes, Advantest Follows
- China Strategy: The Rmb Reversal Is Just Too Fast!
- US Banks – Road Forward
- Weekly Stock Bullfinder – Week of 6/5
Ohayo Japan |Stocks Soar on Debt Resolution/Jobs/China; NUGGET: Where Nvidia Goes, Advantest Follows
- OVERSEAS. US Equities Soar on Debt Resolution and Payrolls; Markets continue to price in Fed Pause; Leaks about China Property stimulus support sentiment; Saudi Arabia slashes oil output.
- JAPAN. NKY Futs +1.4% vs Cash; JP bid to continue after US Rally; Inflation pushing households to stocks; Japan prioritizes hydrogen; Companies face a raft of proposals at June AGMs
- NUGGET. Where Nvidia Goes, Advantest Follows; Advantest now simply just a proxy on Nvidia’s share price
China Strategy: The Rmb Reversal Is Just Too Fast!
- As Rmb moved from appreciation in 1Q23 to depreciation in 2Q23, there is a total change in the beneficiaries discussed in China Strategy: It Is the Foreign Exchange Impact, Stupid!
- The new beneficiaries are CIMC Enric Holdings (3899 HK), China Energy Engineering (3996 HK), China Communications Construction (1800 HK), Sinotrans (598 HK) and AviChina Industry & Technology H (2357 HK).
- CIMC Enric Holdings (3899 HK) generated 20.2% of FY22 earnings from exchange gain as Rmb depreciated. Revenue from outside China rose 10% in 1H23 and accounted for 54.4% of total.
US Banks – Road Forward
- The risk now for US banks is sharply lower net interest income growth, some turning negative
- Ally Financial, First Republic, and Pacwest are the only 3 majors that show this in 1Q23
- Weekly balance sheet data paints a subdued outlook, especially for small US banks
Weekly Stock Bullfinder – Week of 6/5
- To mix it up this week, I am going to journal out the top chart patterns I generally look for when scanning and reviewing charts.
- This post will also include some examples of price action that I typically look for, coupled with fundamental research, which has yielded the best entries and results over the years.
- For starters, I focus on weekly charts to eliminate the noise of the hourly and daily charts which allows for confirming whether the name is in a strong uptrend (defined as above both rising 10WK/40WK moving averages).
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