Hexun Investment Advisor Chen Zeleei: Comprehensive rebound and general rally in A-shares, will it continue to surge on Wednesday?

Will there be another surge or even a sharp rise tomorrow on Wednesday? Seeing today’s market full of red, many friends are getting excited again. Over 5,000 stocks are rising, and the power and photovoltaic sectors are booming across the board. Do you think the bull market is back? But just as the market is soaring, General Lei asks why, while individual stocks are surging, the trading volume in both markets is shrinking. Is this the true start of a new round of market rally, or a trap set by the big players to lure in more investors? Will tomorrow continue the high-flying celebration, or face a harsh split with trapped investors rushing to exit? Hongxun Investment Advisor Chen Zelei analyzes three key details for everyone to consider.

First, from a style perspective, although today’s market rebounded across the board with a broad rally, a closer look reveals that value stocks led the gains. What does this mean? It indicates that today’s main rally leaders are defensive sectors like electricity and pharmaceuticals. Second, from the volume-price relationship, today’s rebound was accompanied by decreasing trading volume. Based on historical experience, this doesn’t significantly affect whether the rebound will continue tomorrow. Third, regarding sector structure, the most impressive performance today was from small and mid-cap stocks, with the micro-cap index rising over 5%. This suggests a broad recovery in tech themes. While electricity and pharmaceuticals led the gains within value stocks, sectors like oil, gas, chemicals, and consumer goods, which are also part of the value style, showed relatively lower increases.

Finally, from the perspective of emotional cycle evolution, tomorrow’s Wednesday market is expected to continue oscillating upward or even surge. The key strategy is to stay calm and not be fooled by today’s broad rebound. Sector differentiation may occur, but upward momentum remains sufficient. Focus on core themes. Remember, opportunities visible to everyone in A-shares are often no longer real opportunities. Being able to distinguish main from secondary trends amid a broad rally, and preemptively recognizing risks and opportunities during market splits, is crucial to protecting profits and seizing the advantage in this market cycle.

(Edited by: Wang Gang HF004)

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