Both Hong Kong and US markets have broken through, where is the opportunity to get on board?

Good Monday, Shenzhen has been hit by Typhoon WIPHA these days, and the trees on the roadside have been blown down. Friends in Shenzhen and Hong Kong should pay attention to safety when traveling.

Stayed at home reading books over the weekend, truly a book is a world.

Deeply interpreted 'First Principles', the book says to learn thinking models and deliberate practice. Benefited a lot.

Also went to see the premiere of 'Photo Studio' over the weekend, felt very depressed after watching it, we must strive for self-improvement!!!

1. News over the weekend.

1. Trump signed the GENIUS Act, establishing a regulatory framework for stablecoins, marking the beginning of the era of digital assets becoming everyday payments. Supporting the development of stablecoins is actually consolidating the US dollar's monopoly in the future digital space. I have only one thought in mind, we need to launch the RMB stablecoin quickly. The US stock crypto sector can be focused on.

2. The US stock earnings season is coming. Exceeding expectations in performance and guidance is not enough, it needs to greatly exceed expectations to rise. Last week actually gave a lesson, although JP Morgan and Bank of America's earnings were solid, the companies still narrowed their gains; streaming giant Netflix's revenue, profit, and guidance all exceeded expectations, but still fell by 5%.

3. The seven giants have already started to differentiate, with four strong and three weak. NVIDIA, Meta, and Microsoft are getting stronger. Tesla, Apple, and Amazon are left behind but still need to catch up. Pay attention to the recent earnings of these lagging companies.

2. US stock market

The US stock market will continue to be bullish, the logic is:

1. July-August is the golden period for buybacks, in August most companies in the S&P 500 will be unlocked, and massive buybacks will push up stock prices;

2. Retail investors continue to net buy, with a certain inertia;

3. Institutional holdings space is still relatively ample;

4. Strong corporate performance and cash flow will drive US stocks;

5. VIX continues to decline, many quant funds still have room to increase allocations.

However, short-term correction risks are increasing.

1. The market is entering a technical danger zone, many institutions are releasing quantitative sell signals;

2. Market concentration is too high, technology, software, and AI innovation are the drivers of this round of market;

3. Weighted indices, small caps, and value stocks are sluggish, market breadth is clearly insufficient;

4. Market sentiment is too high, once encountering changes in the bond market and policies, there is a large risk of retreat;

5. July is the best month for the US stock market in a year, September is the worst, seasonal factors need to be considered, beware of autumn correction shocks.

Hong Kong stock market.

3. Hong Kong stock market.

The Hang Seng Index finally broke through! After the successive breakthroughs of A-shares and US stocks, the breakthrough of Hong Kong stocks is actually just around the corner. Technically, it perfectly matches our trend prediction.

The market breakthrough will drive individual stocks, so I will consider adding positions to the stocks in my Hong Kong stock pool on dips.

4. Key sectors to focus on.

1. AI infrastructure

Since the breakthroughs of various tech giants, shelly has been saying to hold tight to AI. In the second half of the year, AI infrastructure investment may exceed $200 billion, and will continue to enjoy the benefits of performance and valuation improvement. $NVIDIA(NVDA.US), $Microsoft(MSFT.US), $Amazon(AMZN.US), $Meta Platforms(META.US) have always been the ballast of my US stock holdings. Currently, $Tesla(TSLA.US), $Apple(AAPL.US), and $Alphabet - C(GOOG.US) are relatively lagging behind and need to catch up. These stocks follow the principle of 'not cashing out when high, long-term optimism, but must add positions when low'. I will synchronize the specific points for adding positions in the group.

2. Innovative drugs

Biomedicine is a blue ocean, human hope for immortality will not change, so the story of gene editing technology is long. Focus on innovative biotech leaders like CRSP, Casgevy, Vertex. But be aware, biomedical innovation is often high volatility, high risk, focus on the company's pipeline innovation and core product sales.

5. My individual stock holdings.

$NVIDIA(NVDA.US)

The number one stock in the universe, far ahead. Slightly fell on Friday, breathing on the uphill road is normal. RSI broke through 80, clearly entering overbought territory, sentiment is quite feverish. There is a gap of 165-168 below, according to the gap theory, it needs to be filled. And NVIDIA has risen 80% in 4 months, there are many profit-taking positions, short-term correction is inevitable. But this stock, if it dares to fall, I dare to add positions.

$Meta Platforms(META.US)

Lagging behind, reduce positions at any time

$Tesla(TSLA.US)

Continue to hold, wait for Wednesday's earnings report, if there is a big drop, seize the opportunity to add positions.

$Alphabet - C(GOOG.US)

Continue to hold, wait for Wednesday's earnings report, if there is a big drop, seize the opportunity to add positions.

$Netflix(NFLX.US)

Fell more than 5% after Friday's earnings report, although Q2 main financial indicators exceeded expectations, the stock price still weakened. Still the same sentence, exceeding expectations is not enough, it needs to greatly exceed expectations.

$POP MART(09992.HK)

Heard it will be included, expect a wave of market after southbound funds flow in. Consider adding positions around 233.

6. Btw, regarding Hong Kong stock IPO.

Everyone knows $GEEKPLUS-W(02590.HK) is bullish, but it just doesn't rise, today is also quite weak.

Coconut water fell for 8 consecutive days, really drunk, set a stop profit, sell at 42.

Xiao Ying En - Weili Zhibo I have already gone all in, you guys do as you please.