Hexun Investment Advisor Li Hui:

The A-share market still hasn’t let us go. Everything we ate yesterday is all gone today—and we even ended up paying extra for it. A lot of people are now ground down to the point of having no fight left. The index looks like there isn’t much of a problem, but individual stocks are genuinely a complete mess—utter trash. What should we do next? Won’t this accelerate the sell-off?

Let’s look back. When the main index stabilized in late March, I already said: before the big picture lands, don’t fantasize about a reversal. Since it’s not a reversal, then it’s a rebound. Since it’s a rebound, there are two possible paths: either it grinds the bottom, dragging until you’re desperate and then it rallies; or it touches the bottom, rebounds, and then still goes down. Judging from yesterday’s action, the index chose the first option, while individual stocks and sentiment chose the second. One of them must be wrong—so we’ll see today’s clear stance. Yesterday, it was basically impossible to tell; it was all just “passing the day.”

Judging from the brokerage sector and the market seemingly stepping on the second foot, the probability that the market will make another move lower is gradually increasing. So in the first half of this week, during the rebound, I’ve reminded everyone several times to cut positions first. And in the video from the day before yesterday, I even directly said to call it a day when you’ve got decent gains. Look at yesterday—directly, 4,000 stocks fell.

What you need to understand is this: April has some action, but not right now. At least before the Qingming Festival, institutions aren’t really working, and the big picture could still have new variables. When the index is swinging and uncertain, it’s better not to do anything than to do the wrong thing. The market only lets you act once it provides an upside signal that exceeds expectations. So before then, keep your ammo and wait for the truly good setup.

Today’s market action is extremely important—it needs to make a clear call on whether it chooses to go straight up or down. The U.S. stocks last night likely had another rough ride, too—let’s see if there are signs of a clear easing.

(Editor: Zhang Yan)

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. The Hexun website remains neutral regarding the statements and judgments made in the text, and does not provide any express or implied guarantees regarding the accuracy, reliability, or completeness of the content included. Readers are requested to use it only as a reference, and bear all responsibility themselves. Email：news_center@staff.hexun.com

Report