Hexun Investment Advisor Hu Yunlong: There are changes; the response for next week is coming.

Let’s start with my opinion. Today, I do feel a bit anxious. As for why, it’s because over the weekend, media outlets have been unanimously optimistic about next week’s trend. Will the market bottom out as everyone hopes next week? Or can it rise immediately? A quick analysis will clarify this.

Many media analysts are bullish because they believe that after a significant decline, the market will rebound. This is a typical inertia thinking, betting on both sides. The only logical reason for a rise here is whether a bottom has been reached. The expectations for this weekend are already set, so Monday should confirm them. Currently, Monday might not even open lower. If it doesn’t open lower, there won’t be a final panic sell-off, and the market may continue its downward trend to find a bottom. This could disrupt the rhythm and make the trend more complicated.

Additionally, the external market isn’t performing well. If the external market is weak, combined with a bullish internal sentiment, what might happen during trading? It’s very easy to see sharp fluctuations. With mixed news, the actual trend could experience significant volatility. Traders should be cautious and observe carefully during trading. Before a true bottom is reached, expect large swings within the day. Be prepared early to avoid chasing highs or selling lows. Especially during sharp rebounds within the day, try not to chase the rally.

This position is part of the larger wave four structure. There may be a rebound next week, but it doesn’t necessarily mean the final dip of wave four is over. Regarding sectors, the tech sector performed relatively strongly last week. Next week, a correction or a dip in some of the stronger stocks is likely. I also want to remind everyone: trading now should be cautious. It’s okay to miss some opportunities, but avoid making mistakes.