Hexun Investment Advisor Xu Mengjing: When Will the Black Swan Fly Away?

On March 20th, Hexun Investment Advisor Xu Mengjing said, “This afternoon’s market left me stunned. Because now I feel everything is in place, just waiting for a rebound. Yesterday after market close, we also issued a notice to stabilize the capital market. Today at noon, we saw trading volume increase and funds flowing back in. The sectors leading the rise are not even at historical highs. I think a normal correction this afternoon is very reasonable. Also, looking at now, crude oil hasn’t surged significantly, and US stocks only fell a few points before the market opened. So, with the A-shares performing like this this afternoon, I really can’t understand it. The only possible explanation? It’s that for three consecutive weekends, there have been negative signals, and big funds are worried that this weekend might also bring bad news. So they sell off first, triggering a wave of quantitative selling pressure. Many companies have already been cut in half, and many indices are about to break their neckline levels, which further fuels selling pressure. The market panic has been driven by quantitative selling sentiment. We’re at this point now; I think cutting losses is like hitting the floor. Discussing this issue is pointless. As long as everyone doesn’t sell their chips, the current paper losses are just unrealized. Next week, if there’s a rebound, we can observe the strength of the rebound, then control our positions or adjust stocks accordingly.”