Hexun Investment Advisor Liu Wenbo: A-shares ignore external disturbances, with reduced trading volume of 1,853.3 billion

Yesterday, the market saw a drop of 5,000 companies, making us feel like the previous low points might not hold. Liu Wenbo from Hexun Investment Advisory analyzed that the 3,800 point level seems to be under pressure again, and coupled with the broad declines in European and American stock markets last night, this morning the Asia-Pacific stock markets also fell broadly. After opening lower, many people felt utterly hopeless. However, it was at this moment that the A-shares showed a different performance, suggesting that the major players seem to be able to see our cards; they pull the market up whenever you feel pessimistic. The initial pace of the upward movement was relatively slow, with the index continually attempting to progress through difficulties. By the afternoon, the speed began to pick up. However, above 3,900 points, due to the objective pressure from the 10-day moving average and the selling pressure from many trapped investors, along with the shrinking trading volume during the market’s intraday movements, buying power could not keep up. Therefore, the index did not further expand its gains, and it closed back at 3,900 points. Moreover, it is encouraging that most indices basically recovered to yesterday’s bullish positions. Blue chips, like everyone else, remained fully invested since Tuesday’s bottom-fishing and did not move since then. After a life-and-death situation, fortunately, we managed to recover today; otherwise, we would have had to cut losses again.

(Author: Wang Gang HF004)

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