April 10, 2024 review: Another day of heavy losses.

On Monday, 4,000 stocks fell; on Tuesday, 4,000 stocks rose; today, another 4,000 stocks fell. Will there be a broad rally tomorrow?? The rhythm of one day surging and the next plummeting makes participation extremely difficult.

Why the drop today? First, Fitch downgraded our credit rating outlook; second, the general manager of Vanke in Jinan was taken away; third, Ping An Trust "bombed." These reasons can all take the blame, but how could Hong Kong stocks surge against the trend? Where's the logic in that?

Yesterday, I mentioned that after the index filled the gap, today's movement would be crucial. If it couldn't recover, risks would need attention. Without surprises, tomorrow will likely see another battle to defend the 3,000-point mark.

The Shanghai Index shows signs of an "M" top, with the next key level being the previous low around 2,980 for support.

Today, sectors were largely unremarkable. Precious metals rose at the open, with gold holding firm and three stocks hitting the limit-up within the sector. The industrial machinery sector, boosted by positive news, also saw a morning rally. Flying cars surged late in the session, reportedly due to rumors of a new flight office being established.

Yesterday's solid-state battery rally left only a few core stocks standing today. Most intraday speculative plays are driven by news, peaking on the same day and diverging the next—jumping in often leads to losses. With no clear market trend, trading is tough.

Let’s see if a rebound comes tomorrow! Any bounce would be a chance to reduce positions or engage in day trading. No sector commentary for now.