Hexun Investment Advisor Chen Zelei: Hong Kong stocks dragging down A-shares for a correction, can there be a strong rebound and rally tomorrow on Friday?

Will the market continue to decline tomorrow, Friday? How should retail investors respond? Should they rush to exit or lay out their positions calmly? According to Chen Zelei from Hexun Advisors, after yesterday’s rebound, today the A-shares saw a slight rise in the morning before plummeting sharply, encountering a sell-off. The afternoon session continued to show weak fluctuations, and then the main force boosted energy stocks to protect the market, but ultimately, it failed to turn positive. It is evident that today’s sharp drop during the trading session is definitely not simple. Why do I say that? Because there was a collective sell-off, and the sharp decline in solar power stocks made everyone feel the risks approaching. After investors cut their losses, the main force stepped in to protect the market, significantly narrowing the decline, giving people hope again. However, when hope arrived, the bulls lost momentum again. Today, the market sentiment changed dramatically; why did A-shares suddenly drop? Does this wave of decline mean the end of the market? Friday coincides with a critical time window, and the market continues to release panic emotions, undergoing a deep correction. Is it going to stage a comeback to build confidence? There’s no need to guess anymore; if you’re uncertain, let me give you a straightforward piece of advice: although the market seems to be in a low mood, a golden opportunity is quietly forming.

The real reason for today’s market plunge is the significant adjustment in the Hong Kong stock market, which caused related technology sectors in A-shares to weaken simultaneously. This is the core reason for today’s pullback in A-shares. However, strangely, the familiar script is replaying; oil stocks suddenly surged during the afternoon session, yet the market failed to stop the decline and warm up. Facing such a trend, is it possible that A-shares will drop again tomorrow, Friday? Next, I will address all your questions with three key points. First, let’s clarify the viewpoint: today’s adjustment, from a short-term emotional cycle perspective, is merely a tactic used by the main force to accumulate shares amid negative news. Tomorrow, A-shares are likely to exhibit a fluctuating upward trend. Don’t ask why; there are three main reasons. First, although the three major indices adjusted today, trading volume shrank significantly, indicating that the incremental funds entering the market in the last two days did not flee. Second, from a technical perspective, the market is currently facing the dual resistance levels of 3900 and 3800 points, and the probability of the bulls losing ground again is relatively low. Analyzing from the core drivers of this round of market, the core themes of electricity and energy storage remain very strong, and the logic aligns well with the aesthetics and long-term layout of the main force. Therefore, overall, A-shares are very likely to stop falling and continue to rise tomorrow.