Index distortion, individual stocks bottoming out, hold steady positions and wait patiently for the rebound

Yesterday, the indices once again staged a rally led by CATL, with all three major indices rising. However, individual stocks on the market saw fewer gains and more declines, with a serious distortion in the number of advancing and declining stocks—[Taogu Ba].
The CSI 2000 truly reflects the market’s reality. While the index looks good, accounts are losing money. Large-cap stocks are supporting the market, while small and mid-cap stocks are underperforming—this structural divergence continues. Focusing only on indices like the Shanghai Composite can be misleading.
The CSI 2000 still remains firmly above the short-term moving averages, maintaining a good short-term pattern. After yesterday’s surge, the high point is just a hair away from the recent high of 3,630.
But volume remains the key factor limiting a breakout. After yesterday’s rise, trading volume failed to follow through effectively, leading to a pullback. The breakout is temporarily blocked.
Avoid chasing stocks with no volume, and also avoid heavy positions with no volume. Currently, it’s best to stay on the sidelines, strictly control positions, and patiently wait for a clear direction.
Now, let’s talk about two stocks. Recently, many have asked about them:
Longda is a typical left-side trading stock. You don’t know when it will start moving, and its trend can be quite frustrating. Objectively, buying without much thought is a shortcoming; holding for a long period may be necessary. But my trading framework is like this: extreme patience and strict discipline are key, and I don’t easily violate my own patterns.
From the current price position, combined with short, medium, and long-term technical indicators, the opportunity clearly outweighs the risk. The bottom area has been repeatedly tested, risks are well managed, and as long as discipline is maintained and chips are held firmly, the subsequent risk-reward ratio is very high.
In the past two days, many friends have asked about Bona. This stock is following a typical A-sharp decline, falling continuously without any rebound. The decline has nearly halved, and the trend is extremely intense.
I have already added to my position in two batches, increasing my holdings to 40%, with an unrealized loss of 7.5%. Overall, it’s within a controllable range, and I am very satisfied with the current trend.
From a technical perspective, the 120-minute and 60-minute downtrends have reached their extremes, and the daily chart is also at the end of its correction. An oversold rebound is imminent.
Some retail investors may feel hopeless or even angry about such sharp short-term declines, but we focus on the final result, not the process. Unrealized gains and losses on paper don’t count; locking in profits is the real gain.
So, it’s best to keep a calm mindset. The decline is actually an opportunity to buy in stages at lower prices and lower costs. Stay calm, keep the rhythm steady, and don’t rush. Okay?
After each post, I always receive many thanks, likes, and tips from friends. I sincerely appreciate everyone who is grateful and willing to support.
Your trust, kindness, and recognition are the most solid motivation for me to keep reviewing, sharing, and providing insights.
I’m heading out for a run now. Wishing everyone good luck today!