A Blockchain Perspective on the Tuesday Morning Market Dip

Tuesday morning’s market showed a slight surge followed by a decline. The Shanghai Composite Index opened 3 points lower at 3203, and the ChiNext opened 18 points lower at 1996. After the initial dip, the market surged, reaching a high of 3213 before retreating. Over 4000 stocks rose, but due to the drag from weighted stocks, the market and indices subsequently fell, ending the morning session at the lower end of the range. The Shanghai Composite closed down 10 points at 3196, and the ChiNext closed down 10 points at 2003.

Analyzing the morning’s trading data reveals 2199 stocks rose, with 63 exceeding a 9% increase and 282 exceeding a 3% increase. Conversely, 3001 stocks fell, with 20 falling over 9% and 337 falling over 3%. The ratio of rising to falling stocks was approximately 3:4, indicating a slight bearish advantage. While the morning’s initial surge was promising, the subsequent decline, led by weighted stocks, tested the 3185-3200 support range. The market stabilized in this region, but the lack of a significant rebound suggests continued consolidation. Investors should remain patient. Those who can hold onto their low-value stocks should persevere, while others may choose to exit the market.

Some investors, due to the market consolidation, are bearish but reluctant to sell, waiting for a confirmation of a bearish outlook before selling. Such behavior suggests a lack of decisive decision-making. Others sell prematurely, lacking confidence unless a bearish view is widely confirmed. This highlights the varied investor behaviors and the need for independent analysis. The market has shown consistency in its response to both high and low point resonance in the past; therefore, the current large-scale low-point resonance is likely to continue its consolidation.

A sound investment strategy involves avoiding impulsive buying and selling. Strategic low-buying and adding positions during low points, and high-selling and profit-taking at high points is generally advisable. Recognizing and reacting to sudden volume changes and significant price retracements requires adaptability. A consistent strategy applied over time is more likely to yield positive results. Following investment advice should be comprehensive and not selective. Choosing to ignore advice that goes against one’s preferred approach is one’s responsibility. Market consolidation periods require patience. The long consolidation periods before prior rebounds illustrate the need for patience and avoidance of emotional decisions during these periods.

Disclaimer: The above commentary is for informational purposes only and does not constitute trading advice. The stock market is risky, so proceed with caution. Investors should make decisions based on their individual portfolios and the context of the day’s trading activity. Please like, comment and share if you find this analysis helpful. Also, please note that there are fraudulent accounts that impersonate “Taoqi Tianzun”. Please be cautious and avoid falling victim to scams. I do not have a WeChat account, QQ, group chat, or any other contact method. I will not contact you privately to discuss stocks or business opportunities.