Hexun Investment Advisor Lü Nimàn: Market Outlook for Next Week! Just Focus on This One Point

There have been many major news this weekend. How will the A-shares move next week?

Hiexun Investment Advisor Lü Nimang said that to grasp the current market, you must understand these two points. Currently, the main factors affecting A-share fluctuations are external disturbances and internal factors. Since two weeks ago, the market has shown a very obvious pendulum effect. When news hits, resource stocks like crude oil and natural gas start to fluctuate abnormally. At this time, tech stocks perform poorly. When external shocks are not severe in the short term, tech stocks begin to rebound. Moving forward, the market will focus on these three directions.

First is the sector heavily dependent on external factors, such as crude oil and natural gas. The previous gains have been significant, and the fragility of the global supply chain has been fully exposed. The rise in oil and gas prices is driven by the widening supply-demand gap in chemicals and specialty gases.

Second is the computing power synergy. This concept is new, but the logic is very solid. Even before summer, power shortages were already evident. This year, with the expansion of computing clusters, electricity shortages will become a bottleneck for the industry. Some funds have already started testing the waters last week.

Third is new technological directions. This market is a classic tech bull market, and innovation and progress in technology are the biggest opportunities. When new tech directions emerge, Manman will immediately clarify the logic in detailed articles.

Regarding the broader market, last week’s continuous decline caused panic among many. But if you look back, the market’s late Friday trading was actually a perfect risk release. Panic led to chip rotation at low prices during the session, and the market’s risk factors clearly decreased rather than increased. However, a true bottom requires panic. The market’s sharp drop needs to be accompanied by extreme shrinking of volume, with most people unwilling to look at stocks anymore.

Finally, to confirm the view: next week’s main trend is likely to be oscillation, with a pattern of probing for a bottom. There will be rebounds after gaps down, but don’t rush to buy. Volume is key. On the path of a slow bull market, the biggest danger isn’t decline but losing confidence. Don’t fall before the dawn when the market is probing for a bottom and completing shakeouts. Stay alert.

(Editor: Shao Xiaohui)

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