Once again, there is a significant drop, with the Shanghai Composite Index down 1.11%, the Shenzhen Component Index down 1.51%, and the ChiNext Index down 2.1%. The Shanghai Composite Index is approaching the 3800-point mark, showing a sluggish trend.

Under the market downturn, many accounts have seen a retreat in profits, and even the annual gains have significantly shrunk. As Zhao Benshan said, nothing is more painful than watching the wealth that was in hand slip away, which is truly frustrating.

As the market declines, various negative rumors have also emerged:

1. Regulatory tightening on quantitative trading puts pressure on micro-cap stocks;

2. The Bank of Japan's interest rate hike has triggered tension in global markets;

3. Rumors suggest that the tax rate for internet companies may be adjusted from 15% to 25%, dragging down Hong Kong stocks;

4. At the end of the year, institutions settle accounts to lock in profits, lacking the motivation to support the market;

5. The regulatory authorities may be satisfied with the current increase; the Shanghai Composite Index rose 12.5% last year and 14.1% so far this year.

In my opinion, the main factors suppressing A-shares are two aspects: one is the weak economic fundamentals, and the other is the vigilance against the AI bubble from outside. As for Japan's interest rate hikes, institutions' wait-and-see attitude, and quantitative regulation, they are more of an emotional impact.

Seeing many people becoming pessimistic again, I myself have been losing for several days and deeply feel the same. However, due to a relatively stable allocation in a cautious sector, my recent experience has been acceptable. But another short-term account has indeed suffered heavier losses.

There is no need for excessive comfort; the A-shares usually have a spring market every year, and this year should be no exception. The more sufficient the adjustment, the greater the potential rebound space may be in the future. Therefore, it is recommended to maintain a stable mindset and avoid blind operations. This round of adjustment may break below 3800 points, with strong support around 3785, and the bottom line is about 3731 points - the downward space is already limited. #巨鲸动向 #加密市场观察 #美SEC推动加密创新监管 #