When will the bottoming out and rebound occur, so we can buy the dip?

Today’s market opened lower due to a sharp decline in external markets, then quickly rebounded, forming a long lower shadow doji. Is this a sign to stay the course, or a good opportunity to buy the dip? [Taogu Ba]

First, let’s look at the global stock markets today, which experienced a sharp drop, especially in Japan and South Korea. Japan’s stock market fell by 4,000 points, a 7% decline, and South Korea’s market dropped by 8%. The decline in China’s A-shares is not significant; a slight dip at the open is normal, mainly influenced by external factors, not major institutional selling.

Second, today’s trading volume was high, mainly concentrated in the morning session. If institutional panic selling occurred early, and the market later bottomed out and rebounded, it’s unlikely retail investors absorbed the main force’s chips; rather, larger institutions probably did. If retail investors were selling in the morning, the subsequent rise suggests that institutions absorbed the panic selling.

In either case, those willing to spend to buy panic chips amid the current international situation are definitely confident in the market’s future. This opportunity has successfully shaken out some less committed institutions or retail investors, consolidating the chips further.

Today is March 9th, very close to the March 9-12 range we mentioned. Although we cannot confirm the market has bottomed out yet, based on today’s trend, many sectors have essentially found their lows, with some already refusing to decline further.

Overall, the main trend remains upward. The Two Sessions are about to conclude, and the clear direction will soon become apparent. We should patiently wait for the trend to clarify or for the securities market to start moving. Everything is in place, just waiting for the right moment.