Next Week Market Outlook

I. US Stock AI Sector (Mainly Storage)

My personal view is that this round of the AI storage bull market has already topped out in the short term.

The current levels are high and fragile. Even if there is a rebound, or even a modest new high later on, it will basically be a bull trap—deceiving retail investors into taking the bait. Institutions have been quietly distributing at high levels during this period. Funds no longer want to keep pushing hard on the storage line.

Next, money will gradually rotate away from high-level AI hardware, moving into other undervalued sectors. But this is only a phased reallocation, not the complete end of the AI trend.

AI is absolutely the long-term primary theme. There are no issues with the industry’s direction. It’s just that this wave’s short-term rally has been too large and the bubble too full, so it needs time to digest valuations thoroughly and wash out the positions.

Simple summary: Don’t chase at short-term highs—only reduce, not add. After the mid-term adjustment, it will still be the main line.

II. Crypto Sector

Overall, the price action has clearly formed a stage-like bottom, and the structure is getting better and better. We are currently in the final finishing phase of a bear-to-bull transition.

But! Before the real bull market starts, it will most likely go through one more “fake bull rebound” that lures people in.

The historical pattern is very consistent: before the real bottom arrives, the market will first rally a wave to restore sentiment, making people think the bull market is here. It pulls in momentum followers and leveraged funds, and then suddenly sells off to complete the last round of deleveraging and wipe out retail.

This final dip is often unexpected and comes with zero warning—its purpose is to fully clear out the market’s floating supply.

So at this stage, don’t go in heavy to catch the bottom. Don’t prematurely lie flat and only do longs. In terms of execution, follow the trend and act in line with it, adjust positions flexibly, and keep enough patience. Wait until the last wave of panic selling has cleared out and the bottom is firmly established—then you can lay out the big opportunity with confidence.

Overall Strategy

AI storage: Top out at high levels—avoid chasing. Go long on dips and short rallies.
Crypto: Nearing the end of the bottoming process, but still need the last shakeout. Keep positions light, move with the trend, and wait for a truly confirmed bottom.