Hexun Investment Advisor Chen Jinhui: The pullback occurred as expected; caution is still needed until stabilization.

Yesterday, on the very first day we returned, we made important reminders for everyone—two words: be cautious. According to Xunxi Investment Advisory analyst Chen Jinhui, today the index indeed went down all the way. In the end, around 80-something percent of stocks closed lower. The index still hasn’t broken out of the range-bound pattern. As for whether it will move into a five-wave pullback, that still needs observation.

So, on the 3930 level, that resistance zone serves as an important observation point for a possible rebound afterward. It may repeatedly test that area before finally confirming the direction. If it really falls in wave five, then the downside impact will be relatively large.

Although the benchmark index—what we’re seeing—is around the 3800 area, you shouldn’t think that because it’s only a few points on the index, stocks are necessarily different. Most stocks may just end up in a messy, miserable situation. Don’t assume that keeping you watching less and trading less is harming you. Let me give you a simple example: in this leg, from the rebound at around 3794 to where we are now—has it really been easy to manage? It’s been disorderly up and down. You get a broad rally day, then a broad sell-off day. When it’s up, you make money on only a small chicken; when it’s down, you may lose a whole bull.

Because the trend itself is in a bearish market structure, then any rebound is meant for you to look for selling points—not for you to chase the rally. Isn’t that also a lesson in life? If the direction is wrong, all your effort goes to waste.

So how should you look at it now? This still isn’t a good time to enter. Don’t be misled by more upside temptation from above. Ah—wait patiently for the bottom signals to show up before entering. After the market stabilizes, and as the bullish structure gradually becomes clearer, then you can achieve twice the result with half the effort. The main thing is: I’d rather make less money than cry a lot.