Alphabet After-Hours Plunge Drags Taiwan Stocks Lower From Flat Open
The U.S. Federal Reserve left interest rates unchanged as expected, and U.S. stocks rose, but AI giant Alphabet reported revenue and profit below market expectations, while guiding for a sharp increase in AI spending next year, reviving market concerns over financing sources and payback for massive AI infrastructure spending. Alphabet shares fell nearly 10% after hours, weighing on Taiwan stocks. On Thursday, Taiwan stocks were hit by Alphabet's after-hours plunge plus higher odds of a December Fed rate hike, opening flat and moving lower, with an intraday low of 46055, filling the prior day's upside gap. The index closed down 667 points at 46368, with a black candlestick. Trading volume was 7891億元, up from 7221億元 in the previous session, showing price decline with volume expansion, indicating some chips loosened again as upward momentum stalled.
Breaks Below Quarterly Line Again, Short-Term Bull-Bear Tug-of-War
In terms of the daily K-line, Wednesday briefly showed a precursor of a daily-level sunrise signal and reclaimed the quarterly line, but Thursday immediately saw strong bearish resistance, meaning the rally failed to continue. Meanwhile the intraday low of 46055 filled the prior day's gap and broke below the quarterly line again, with the quarterly line currently near 46505, meaning the short-term trend has not confirmed a turn bullish. Since it did not break below the prior day's low of the upside gap, it is not interpreted as a sunset, and is viewed for now as short-term bullish-bearish反复, with the market entering a bull-bear tug-of-war. On the weekly K-line, the focus this week is on the daily K-line no longer making new lows. On Thursday, after approaching last week's high of 47332, selling pressure emerged overhead and the index pulled back, showing the consolidation period could not be shortened in one move. Watch whether this week's low of 45676 can continue to hold for more than 1 to 2 weeks.
OTC Holds Lows, Group Window-Dressing Rotation Heats Up
As for the OTC index, after also showing a precursor of a daily-level sunrise signal on the daily line on Wednesday, despite encountering bearish resistance, bulls defended and the prior day's red-bar low of 382.46 was not broken, showing bulls holding firm, with this OTC rebound stronger than the weighted index. Looking at Taiwan stocks' daily KD indicator, after the daily KD crossed upward near 20 on Wednesday, the upward angle slowed on Thursday, and the upside gap failed to widen in one move, showing the daily KD temporarily bottoming near 20, with insufficient upside momentum. Watch whether the daily KD can quickly climb back above the 50 bull-bear divide; otherwise, day trading and overnight speculation will dominate, investor sentiment will stay short-term, and individual stocks will easily alternate up and down in choppy consolidation. On the market front, as November approaches, group window-dressing themes are heating up, with Walsin Lihwa Group's Walsin Technology, VIA Group's VIA Labs, UMC Group's Faraday Technology, Gigastorage Group's Giga Solar, and BenQ AUO Group's Qisda and other stocks having taken turns to perform, joining the rotation, which can continue to be tracked.