The U.S. Federal Reserve kept interest rates unchanged as expected, driving U.S. stocks higher. However, AI giant Alphabet reported revenue and profit below market expectations and guided for a sharp increase in AI spending next year, reviving market concerns over financing sources and return on massive AI infrastructure spending, with Alphabet shares falling nearly 10% after hours, also weighing on Taiwan stocks.
Opened Flat, Drifted Lower to Fill Gap, Closed Down 667 Points at 46368
On Thursday, weighed by Alphabet's sharp after-hours drop plus a higher implied probability of a December Fed rate hike, Taiwan stocks opened flat and moved lower, hitting an intraday low of 46055 and filling the prior day's upside gap, closing down 667 points at 46368 with a black candlestick. Turnover was 7891亿元, up from 7221亿元 in the previous session, with price down on higher volume, showing weak upside momentum and loosening of some holdings.
Falls Below Quarterly Line Again, Bull-Bear Tug-of-War Without Confirmed Turnaround
On the daily K-line, Wednesday briefly showed a pre-signal of a daily-level sunrise signal and a reclaim of the quarterly line, but Thursday brought strong bearish resistance and the advance failed to continue. The intraday low of 46055 filled the prior day's gap and fell below the quarterly line again, currently around 46505, with the short-term trend not confirmed to have turned bullish. Since it did not break below the prior day's low of the upside gap, it is not interpreted as a sunset, viewed for now as short-term反复 bull-bear swings, 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; after approaching last week's high of 47332 on Thursday, selling pressure emerged overhead, the index pulled back to test, the consolidation period was not shortened at once, with focus on whether this week's low of 45676 can hold for 1 to 2 weeks or more.
OTC Holds 382.46 Points, Rebound Stronger Than Weighted Index
The OTC index also showed a pre-signal of a daily-level sunrise signal on Wednesday on the daily line, and despite bearish resistance, with bulls defending, the prior day's red-bar low of 382.46 was not broken, showing bulls' defense, with this rebound stronger than the weighted index. On the daily KD indicator, after crossing upward near 20 on Wednesday, the upward angle slowed on Thursday, the upside gap failed to expand at once, basing near 20 for now with insufficient upside force. Watch whether the daily K-D values can quickly reclaim the 50 bull-bear demarcation, otherwise the market will be dominated by day trading and overnight swing trading, investor sentiment will lean short-term, and individual stocks will easily alternate red and black in repeated choppy consolidation.
November Group Year-End Window-Dressing Heats Up, More Stocks Join Rotation
On the market front, heading into November, group year-end window-dressing themes are heating up; in addition to the previously mentioned 台塑 Group and 鴻海 Group, 華新 Group's 華新科, 威盛 Group's 威鋒電子, 聯電 Group's 智原, 國碩 Group's 碩禾, and BenQ-友達 Group's 佳世達 have successively shown strength and joined the rotation, which can continue to be tracked. The individual stocks, ETFs and expert views in this article are not any investment advice or reference; investors should judge independently, carefully assess risks, and bear their own profits and losses.