Hexun Investment Advisor Chen Xiaojun: The Reason for the Market Decline Has Emerged!

Today, the three major A-share indices all declined collectively, with a volume decrease of 110 billion yuan. The number of stocks rising is less than 900, indicating a clear loss-making effect. What’s going on with everyone? Will funds flow back tomorrow? The indices are once again approaching the lower boundary of the box range. When will they reverse? According to Chen Xiaojun, a Huaxun investment advisor, the market focus today was on yesterday’s GTC conference. However, hardware computing power stocks opened high and then sold off. As mentioned in the previous live broadcast, fiber optic cables, liquid cooling, PCBs, CPUs, and others all experienced adjustments after a previous rally. This was a clear profit-taking move. Those who thought it was good news were caught off guard if they rushed in this morning. Of course, some quantitative funds are also at play.

From a technical perspective, the index showed a long upper shadow and a slight rise yesterday. I mentioned in yesterday’s live that the Shanghai Composite Index is in a downward trend overall. As long as the rebound of 5-10 days cannot break through the midline, it is likely to face resistance and fall back, dragging short-term sentiment down and increasing selling pressure.

Another point is that external actions may not have ended so quickly. If oil prices continue to rise, inflation remains high, and rate cuts fall through or even rate hikes occur, liquidity will be affected, and tightening expectations will persist. Therefore, tomorrow’s short-term sentiment is unlikely to fully recover, and the market may continue to decline. A rebound is expected around Wednesday afternoon or Thursday.