Hexun Investment Advisor Chen Xiaojun: Open low and rise high, no need to rush to buy the dip

Opening lower and rising higher, don’t rush to catch the bottom. Today, the A-shares staged a textbook-style low opening rebound, which must have scared a lot of retail investors in the morning session, but there was a pleasant surprise at the end of the session, wasn’t there? The chips in hand were almost shaken out, so how should we operate next?

Chen Xiao-Jun from Hexun Investment Advisory stated that we should first look at the core data. The three major indices opened lower and then rose, with the Shanghai Composite Index briefly dropping nearly 1%, reaching a low of 3852. However, there was a strong surge in the closing session, with over 3800 stocks in the market rising, while only a little over 1000 fell, creating a strong profit effect. There are two signals to remember today: first, the Shanghai Composite Index stabilized at the key support level of 3850 points, forming a strong rebound technically. Second, the trading volume of both markets exceeded 1.8 trillion, indicating continued capital activity; although there was a decrease in volume, we are taking it slow. Now, here’s a practical operating suggestion: first, don’t chase high; high-quality stocks at low positions are still the main line, and you should hold your chips steadily. If you are out of the market, don’t blindly catch the bottom; wait for a pullback confirmation before entering.

(Author: Shao Xiaohui)

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