Hexun Investment Advisor Li Yongxi: How to Navigate a Divergent Market?

I told you about the divergence yesterday, and you didn’t believe me. So, how about today’s morning session? Is the divergence severe enough? Can we break through the gap today? How should you decide on your stocks?

Today’s morning trading showed a strong divergence sentiment, with some stocks rising quickly and others falling just as fast. But one level is very important—3925. As I mentioned yesterday, this level has become a key entry point for major funds today. You’ll notice that every time the price drops below 3925, funds flow in. The trading volume in the morning was completely suppressed by the big players. So, can we break through the gap at 3955? It must be broken because that will attract retail investors to buy stocks. If we break through 3955, prices could go higher. Then, a pullback to 3955 would attract investors to see it as support and buy in. That’s the main strategy of the big players today.

Therefore, I suggest that stocks which have risen a lot in the past two days should be sold high and bought low. Stocks that haven’t risen much in the past two days should be held tightly, as they might catch up later. After divergence, there could be a pullback, so remember to seize short-term opportunities to help your account recover faster.