Hexun Investment Adviser Liu Wenbo: The 4000-Point Battle, Afternoon Session Particularly Critical

On March 19, Liu Wenbo from Hexun Investment Advisory stated that the A-shares market rebounded slightly at the end of yesterday’s trading session, giving everyone a glimmer of hope. Initially, it seemed like a good buying point, but as I told everyone about the blue chips, the final few minutes’ buying did not materialize, so we did not enter the market yesterday. Who would have thought that after a night’s sleep, there would be new developments outside? The Federal Reserve’s interest rate decision had no substantial results, and with new changes in the international situation, global markets closed in the red overnight, with no gains at all. This morning, before the A-shares market opened, the Japanese and Korean markets had already fallen more than two points, and the A-shares were naturally not spared. After opening lower, all major indices returned near yesterday’s lows.

Moreover, this time’s gap down was different from previous ones. In the past, markets would quickly rebound after a gap down, but this time, the rebound was clearly weak. Around 10:35 AM, the market showed a small turning point. During the live broadcast, we recorded this promptly and reported it to friends. If the technology sector could continue to rise and trading volume kept increasing during the next hour, there might have been an opportunity to enter the market in the morning. Unfortunately, after 11:00, trading volume continued to shrink, and the indices turned downward again, so the morning buying opportunity was lost.

As the indices fell back, the 4,000-point level is once again under pressure. This afternoon’s market will be very critical. The average stock price has been hovering near the intraday moving average line. If the market can stabilize and rise in the afternoon, this will be the fifth recent bottoming and rebound, forming another barrier near 4,000 points. Once such signals appear, we will decisively enter the market. The blue-chip lock-in at 1:50 is ongoing. Currently, adjustments are becoming more challenging, but the turning point is approaching, and we are preparing for it.

(Editor: Zhao Yanping HF094)

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