He Xun Investment Advisor Wu Zhipeng: Market's Two Main Themes - How to Choose?

The market has rebounded for two consecutive days today. Today’s movement did not show any increase in trading volume. Can the entire market continue to chase gains today? Will we see another signal of continued upward momentum tomorrow?

Wu Zhipeng from Hexun Investment Advisory said, first, let’s discuss the expert’s view. At this point, the market index is definitely looking at the direction. Since the bottom after the correction from 3,794 points and the rebound, the overall market trend from a minute chart perspective remains very clear—a gradual climb. Currently, there are no obvious signs of acceleration. What does acceleration look like? It would be a noticeable surge in bullish candles near the end of the reversal. So far, we haven’t seen that peak in the minute chart rebound. The short-term rebound trend remains primarily based on short-term minute chart analysis, which is the main thinking.

Today, a noticeable issue in the market is that tech stocks led the gains. Imagine, tech stocks are the top performers today. Do you think their contribution to the overall sector index is significant? Or is it sustainable? Since the market has stabilized above 3,800 points, and the main force behind the rebound has been in the tech sector, how far can this sector go without support from heavyweight stocks? Although geopolitical influences from overseas markets are still present, risks are continuously unfolding. There’s a high possibility that tonight or tomorrow night, geopolitical tensions could escalate again. Therefore, energy-related sectors might become a main theme.

In other words, as I’ve mentioned before, whether it’s crude oil or coal, if there’s further escalation or stimulation of events, these sectors that have been adjusting for two days could see a rebound. The second main theme is that if negotiations or peace talks are truly finalized or reach a tripartite agreement, then the tech sector could become a potential growth stock. Currently, the market has two main themes: one is that if negotiations succeed, focus on tech; if not, then look at resources and energy. The short-term rebound logic for the index still exists, meaning the market’s optimistic outlook persists. At this moment, we should cautiously maintain a bullish stance on the tech sector as the main focus, but also stay alert to the possibility of a major rebound in energy sectors due to event escalation. In other words, be prepared for both scenarios. This is the two main themes that expert has shared with everyone.

(Edited by Shao Xiaohui)

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