Pre-market on April 8

Yesterday, all three major A-share indices edged up slightly. However, the CSI 2000, which represents small- and mid-cap targets, printed a modestly bullish trend. Among individual stocks, the median gain was 1.1%, and the small-cap “making money” effect was relatively strong. This shows that, compared with the more weight-heavy large-cap indices, the CSI 2000 can more realistically reflect ordinary retail investors’ actual position returns and the market’s money-making effect on the tape. In judging market direction and sentiment, you should first prioritize the trend of small- and mid-cap indices～～
Looking back at the tape, although the CSI 2000 closed with a modestly bullish candle yesterday, it did not reverse and recover the decline from the last trading day before the holiday. It also failed to recapture the short-term moving averages. In addition, volume had shrunk compared with before the holiday, and market sentiment was low, with insufficient willingness to go long～ The longer the key levels and moving averages have been lost, the higher the probability that a rebound attempt will fail. With a lack of confidence in going long, this is also the core logic behind yesterday’s point not to add positions impulsively, and instead to keep existing holdings and observe to avoid uncertainty～～
Looking ahead to today, conditions overseas were flat overnight, with no positive news catalysts. From the perspective of the intraday small timeframes, there is still upside momentum to push higher, but the risk of selling off after an early spike is relatively high. Trading volume on the way up is insufficient; if you cannot break through the resistance range, there is a high likelihood the index will turn and move downward～～ Strategically, you should maintain a cautious approach. Lean on the opportunity to spike upward: for positions that were bought on the prior low and are now in profit, take partial profit at higher prices to avoid the drawdown risk caused by a spike-and-fall～～
Yesterday, Longda and Bona, which have been in the process of seeking a bottom, both printed strong middle-to-large bullish candles, but a single rebound is still not enough to confirm a bottoming pattern. A bottom construction requires continued bullish candles afterward, volume to cooperate, and a synchronized stabilization in price action—only then can you confirm that the intermediate bottom is truly effective～～ Today is the key node for validating whether the rebound can sustain. Can it continue the repair trend, hold the short-term moving averages, and maintain a volume-expansion structure? At present, the bottom has not yet been solidified, and the risk of whipsaw remains. In terms of trading, you should mainly observe rather than chase blindly. For chips with unrealized gains, you can trim into the spike opportunity, realize part of the profits, reduce your cost basis, keep operational initiative, and wait to lay out positions after the bottom structure is confirmed～～
Finally, I would like to emphasize once again that this article is only my personal thinking and does not constitute any investment advice～ The stock market is dangerous and unforgiving. Everyone must think independently, strictly manage risk, and I wish you all good luck～～