Hexun Investment Advisor Zhao Bingyi: This year, the focus of the youth index is on individual stocks; software services have potential for a rebound.

On March 27, He Xun Investment Advisor Zhao Bingyi stated that since January this year, the focus has been on individual stocks rather than indices. The reason for “light indices” is due to concerns about a potential drop in the index; the emphasis on “individual stocks” is because there are opportunities for individual stock gains. The focus on individual stocks references the software service sector. Looking back, the points at which the sector index rebounded from the 120-day moving average indicated the beginning of attention, and multiple rebounds near the 250-day moving average also suggested increased focus. At the end of last year, the overall market index surged dramatically, but such a surge often leads to repeated divergence from high levels, which could result in significant downward moves at any time. Meanwhile, software services saw no increase during the market rebound, presenting an opportunity for catch-up gains. Subsequently, there was a wave of increase; even if one entered early with a high cost, there were still opportunities for profit. If one cannot profit in such an environment, the stock market may not be suitable for them. Subsequently, software services entered an adjustment phase, reflecting the state of individual stocks, with a decline of 23% from January 15 to March 27, which can be checked against one’s own account. During the decline of software services, I had previously pointed out the upper shadow positions, and recently suggested going long again at the double bottom rebound point. Although there was a downward movement afterward, losses should be acknowledged; however, one should not remain bearish but adopt a bullish mindset towards the software service sector, as the weekly indicator has climbed when it was below 0, and the daily indicator has shown continuous divergence. The success rate of trying to go long is high. Additionally, I had warned when the software service weekly high exceeded 100, and during the week when the Shanghai Composite Index was at a high, I also advised everyone to be cautious of a major drop when the MACD formed a second death cross combined with the KDJ death cross.

(Reviewer: Zhao Yanping HF094)

【Disclaimer】This article represents only the author’s personal views and is not related to Hexun.com. The Hexun website maintains neutrality regarding the statements and viewpoints expressed in the text and does not provide any explicit or implicit guarantees regarding the accuracy, reliability, or completeness of the content. Readers should use this for reference only and assume all responsibilities. Email: news_center@staff.hexun.com