LiveWire

The CSI 300 index represents the top 300 stocks listed on the Shanghai Stock Exchange and the Shenzen Stock Exchange. Since the regulatory crackdown, supply chain issues, energy shortages, and the Evergrande issue, these stocks became almost untradable. Are they set for a new path in 2022?

PayPal's business benefited greatly during the pandemic. Its stock recently faced heavy headwinds amidst a rush for investors to sell stocks with higher valuation multiples. Valuation has come down with the stock down by approximately 38% since July 2021. From a technical analysis perspective the stock has maintained its key support level of $180. Price earnings ratio multiples are now close to pre-pandemic levels, but remain high given the payment leader's high growth profile. Earnings will be out early February 2022. 

Tesla China November sales per CPCA were 52.9k vs 55-60k expected. Exports totaled 21.1k vs 31.7k for domestic sales. Record for domestic sales, but exports were lighter than expected. The pandemic most likely continues to present challenges for supply-chains, Tesla included. Traders will be keeping an eye on key support level of $1,000 for $TSLA stock. Amid the market wide sell-off, Tesla stock has corrected together with competitors Rivian and Lucid. Massive valuations for these pure EV companies continues to be highly debated amongst investors. Pre-market Tesla stock is pressured -1.6% at $1,035 versus +0.5% for Nasdaq 100 futures.

Markets staged a comeback last night with the Dow Jones Industrial Average gaining 1.87%. Futures point to an additional 0.8% gain. Markets rebounded after briefly touching technical support levels at ~34,000 and were clearly oversold from a relative strength perspective (RSI). Positive news of the Omicron also acted favorably, which led to a large rebound from stocks with important exposure to reopening. The Omicron variant is widely seen as a headwind to the recovery, but not derailing it. It caught investors off-guard, causing a rapid unwinding of positions last week, during a typically favorable month of the year.  

Alibaba, which has just replaced its CFO, was worth almost USD900bn in October 2020. It's now at ~USD300bn. It started with the derailing of the ANT IPO and worsened with the regulatory crackdown on internet companies. Authorities have been going after unfair practices used by big tech such as Alibaba and Meituan that squeeze small businesses. Investing in the region is high-risk amid the political agenda of Beijing to tamper the influence of Big Tech and tackle “unfair” practices. E-commerce is also fiercely competitive with the emergence of players such Pinduoduo, which has now surpassed Alibaba in terms of annual active users. Comparably, tech player in Southeast Asia Sea Limited has continued to expand rapidly and has remained a market darling.