December 8 morning review, positive news continues over the weekend, and the Shanghai Composite Index will rise sharply on Monday. If there is a significant gap-up at the open, it is not advisable to chase the price excessively. Wait for a pullback, and you can increase your positions on dips. The securities market is characterized by impulsive trends, and significant rises should be met with profit-taking.

This weekend brought major positive news, with unreliable sources beginning to soften their stance, positioning China as a nearly equal competitor. Emphasis is placed on developing economic and trade relations based on mutual benefit and equality. The external situation is gradually easing, and a model of joint governance by two powers has become a norm.

This Wednesday, the Federal Reserve is highly likely to cut interest rates by 25 basis points. U.S. stocks will rise significantly, and the Asia-Pacific stock markets will also follow suit with substantial gains. After a significant decline, the Shanghai Composite Index has already adjusted to an appropriate level. The market outlook remains optimistic before Wednesday, allowing for position increases on dips.

I have repeatedly emphasized that the Shenzhen market will outperform the Shanghai market for a long time. The ChiNext Index, communication equipment, artificial intelligence, and chips have greater upward potential. Strong sectors in traditional industries, such as chemicals, rare earths, commercial aerospace, and electricity, can also be increased on dips.

The moving average support for the Shanghai Composite Index in May is strong, with the 5-day, 10-day, 20-day, and 60-day moving averages all turning upwards. Maintain confidence and patience while waiting for the market to break upwards. A peak of 4000 points this week is expected. Wishing everyone good luck on Monday!