Hexun Investment Advisor Gao Lulu: Major rally abroad! Can Wednesday reverse the delisting trend?

Friends, in the dead of night, a major piece of good news has hit out of nowhere—U.S. stocks surged, Chinese concept stocks skyrocketed. Where will the market move today? Will it keep rising?

First, let’s look at what’s happening in the news. Yesterday, the U.S. announced that even if the Strait of Hormuz remains closed, it is still willing to end military actions against Iran. Then, the Iranian president made it clear that Iran is willing to end the war, but on the condition that its demands are met—especially guarantees that it will no longer be subjected to aggression. This is the first time Iran has released a signal that it wants to end the fighting and seek de-escalation. As a result, the market interpreted it as a clear easing of the situation on the periphery. Overnight, U.S. stocks rallied strongly, and Chinese concept stocks rose by more than 3%. This is positive for A-shares, helping drive the market to open higher today, and even to break higher.

Another piece of news shows that the U.S. attacked Iran’s largest island, while Iran, in turn, listed 18 U.S. companies as targets for its strikes. It’s clear that external news has both positives and negatives intertwined, but for now, market funds are more inclined to acknowledge the positives.

Regarding today’s market trend—since U.S. stocks surged strongly overnight, and Chinese concept stocks and the A50 both showed upward momentum—today A-shares are likely to open higher due to positive sentiment, and there is even bullish momentum after the open. But there are a few key points to keep in mind.

First, as of now, global markets basically follow external news developments, so technical factors are being weakened. During today’s trading, be alert to unexpected deterioration news; if such a situation arises, the market may still surge first and then retreat. Second, today requires major weighty sectors to take a clear stance. Yesterday, gold and silver saw a strong rebound. Whether the non-ferrous metals sector and large financials sector can step up is crucial. Since this rebound started on March 23, the main reason the rally failed to push through yesterday was that the weighty sectors lost momentum. If today wants to break higher again and close the gap above, it must rely on weighty sectors like non-ferrous metals and large financials to generate strength. Finally, trading volume must increase. The strength of this rebound has been on the weak side; the core issue is that the scale of entry from internal institutions has been relatively small. If today still isn’t willing to exert strength, or if the力度 is limited, even if prices surge, the upside space will be constrained.

In terms of trading strategy, observe the market’s performance in the early session today. If the upward push is in good shape, the remaining positions can be held; if a surge-and-then-fall pattern happens again, gradually confirm that the market has made a four-wave high point and possibly even a five-wave pullback, then you can do T+0 intraday sell/close-and-reopen to take profit, waiting for later low-buy opportunities. It needs to be emphasized that no matter how the news changes, the market is forming major lows and a bottom, and what we are really doing is looking for a more suitable opportunity to buy the dip.

(Editor-in-charge: Zhang Yan)

【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. The Hexun website remains neutral regarding the statements and judgments made in the article, and does not provide any explicit or implicit guarantees regarding the accuracy, reliability, or completeness of the content included. Readers should use this information only as reference and bear all responsibility themselves. Email: news_center@staff.hexun.com

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