He Xun Investment Advisor Zhao Bingyi: Focus on Individual Stock Opportunities in Software Services, While Paying Special Attention to the Multi-Short Status of Shanghai Stock Exchange 60-Day Line

Yesterday afternoon, the index and market collectively rebounded, but there was a clear characteristic: the index came back, but the money didn’t. The reason for the lack of funds is mainly due to software services, but since the index has recovered, at least there is a reason to continue going long. At noon yesterday, when the Shanghai Composite Index retested the 60-day moving average, I told everyone it might be worth trying to buy the dip, and if wrong, so be it. Looking now, this judgment was correct; today there is some premium, and combined with yesterday’s spike, it’s still worthwhile.

However, for today, if another upper shadow appears, it will form a pattern of both upper and lower shadows, creating another decision point for direction. Once a direction is chosen, pay close attention to using the 60-day moving average as a stop-loss line. If it breaks down, it could probe toward the 120-day moving average, possibly even filling the gap at 3977.

Regarding the ChiNext Index, I previously mentioned that the daily KDJ should rise above 100. It achieved this at the opening this morning, but now that phenomenon has disappeared, indicating continued consolidation. But once the ChiNext Index strengthens, it means funds are flowing into the top 100 stocks, while other stocks generally won’t perform well. This is also why the index has recovered but individual stocks haven’t.

For software services, my expectation remains that the target is a J-value above 100. So at this level, I see the relatively low position as a clear feature, mainly a matter of operational rhythm. Today’s adjustment in software services mainly stems from the high J-value on the 30-minute chart, and the correction is likely to be sideways. Why? Because the 60-minute and 120-minute charts are still relatively low, and the daily chart is also relatively low. Therefore, software services are mostly consolidating, and whether individual stocks can break out depends on stock-picking ability. The pattern I mentioned in last week’s short video can be looked for; this type of pattern often leads to a quick rebound with a long bullish candle.

(Edited by: Zhang Yan)

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