Guoxin Securities said that the A-share market initially stabilized last week, but we still have to wait for trending upward opportunities. First, judging from the chip structure, the previous AI technology sell-off pressure has come to an end, and style rebalancing has come to an end. Second, judging from market sentiment, the sentiment of going long is brewing. Third, the capital layout bucked the trend and consolidated the bottom of the market. Around July 20, equity ETFs continued to be purchased on a large net basis. Judging from the chip structure, market sentiment, and funding direction mentioned above, the A-share market is currently showing initial signs of stabilization, but it is expected that capital will be suppressed by certain events at the end of July. It is expected that capital will increase the market layout after the uncertain factors have subsided. Around the end of July, the probability of the daily line building a “W-shaped” bottom is greater. Wait until the market comes out of the right side before considering the layout. Overall, driven by factors such as the disclosure of the mid-term report at the end of August and the proximity of the US midterm elections in early November, it is expected that from late August to the end of October, the A-share market index may enter a favorable window period to increase again. At that time, it is possible to consider increasing risk appetite and positions appropriately.

Guoxin Securities said that the A-share market initially stabilized last week, but we still have to wait for trending upward opportunities. First, judging from the chip structure, the previous AI technology sell-off pressure has come to an end, and style rebalancing has come to an end. Second, judging from market sentiment, the sentiment of going long is brewing. Third, the capital layout bucked the trend and consolidated the bottom of the market. Around July 20, equity ETFs continued to be purchased on a large net basis. Judging from the chip structure, market sentiment, and funding direction mentioned above, the A-share market is currently showing initial signs of stabilization, but it is expected that capital will be suppressed by certain events at the end of July. It is expected that capital will increase the market layout after the uncertain factors have subsided. Around the end of July, the probability of the daily line building a “W-shaped” bottom is greater. Wait until the market comes out of the right side before considering the layout. Overall, driven by factors such as the disclosure of the mid-term report at the end of August and the proximity of the US midterm elections in early November, it is expected that from late August to the end of October, the A-share market index may enter a favorable window period to increase again. At that time, it is possible to consider increasing risk appetite and positions appropriately.