On Friday, August 7, the U.S. released July's non-farm payroll data, which unexpectedly showed a decrease of 23,000 jobs—far below market expectations. May and June figures were also significantly revised downward by 103,000 jobs. This weakening labor market has reduced expectations for a September rate hike by the Federal Reserve. Before the NFP release, the CME FedWatch tool indicated a 55% chance of a rate hike; this has now dropped to about 45%. Whether rate hike expectations can fall to zero hinges on this week’s CPI data (to be released on August 12) and PPI data (on August 13).

Inflation! Inflation! Inflation! This is the key metric the Fed is currently watching most closely—and the reason why rate hike expectations still exist. On my August 7 program, I clearly stated that Taiwan’s stock market this week remains in a range-bound pattern, neither breaking 40,000 points nor surpassing previous highs. Strategically, it's best to trade the range and capture price differences.

For existing holdings, take this action during rallies: [Sell weak stocks, keep strong ones, and consolidate your portfolio]. Avoid large-cap AI stocks and ETFs like 0050 and TSMC. Instead, shift to small-to-mid cap AI-related sectors such as memory, passive components, and PCBs to quickly turn losses into gains.

However, don’t blindly buy any small-to-mid cap AI stock—picking the wrong one won’t yield significant gains. In my program, I used the market phenomena following the April 2025 stock crash to fully explain this. Coincidentally, on Friday night, the Taiwan stock index futures surged by 736 points. Today, Taiwan stocks opened high with messy positioning and extremely high P/E ratios—making it an ideal time to take profits. If you’re unclear on this, I recommend rewatching my YouTube program from August 7 for a complete explanation.

Finally, TSMC, MediaTek, Delta Electronics, Hon Hai, Quanta, Wistron, and Wiwynn are expected to reach safe P/E buy zones between August 10 and 14. Send the keyword [888] to learn how to use this data to identify precise entry and exit points. I fully explained this in my August 7 YouTube program—rewatching it will help if you’re still unsure!

For daily updates on hot-performing stocks, please refer to our free daily LINE market analysis articles!

[Join Analyst Yang Yu-Hua’s LINE@ Fan Club for Real-Time Stock Picks]

Click the link below to join:

https://lin.ee/fmIIRhL

[Subscribe to Analyst Yang Yu-Hua’s YouTube Channel for Daily In-Depth Market Analysis]

Click the link below to join:

https://www.youtube.com/channel/UCK1TfbeSlR0jc733Ep83Xfg

Source: Moore Securities Investment Advisory — Analyst Yang Yu-Hua

FACT BOX

  • Source: PR Times
  • Category: News
  • Dates in source: 8/7 / 8/12