Mysterious funds are bottom-fishing Hong Kong stocks! The A-share washout may be nearing its end, and we can expect to see a low point in the next couple of days.
In the late trading session, mysterious funds entered the market to bottom-fish Hong Kong stocks, releasing positive signals—The washout trend in A-shares is likely to end in the next couple of days, with the bottom area in sight.
The core logic and key basis are as follows:
1. Resonance of the interest rate cut cycle: In the past few days, we have repeatedly emphasized the market rhythm after the Federal Reserve's interest rate cuts. The previous two cuts (September 18 and October 30) both showed a pattern of 'market crash on the same day, followed by a washout completing in about four days.' This time, with the Federal Reserve's interest rate cut on December 11, today marks precisely the fourth trading day, and the timing aligns perfectly with historical trends, making the conditions for the washout's conclusion gradually mature.
2. Accurate fulfillment of previous predictions: Last Friday, we indicated in the late session that 'it is not advisable to chase high near the 3900 point mark on the 5-day moving average; a second bottom may be expected early next week,' and this week we have continued to emphasize 'low absorption can proceed below 3850 points,' with the current market advancing entirely according to the predicted rhythm.
3. The trend replicates historical bottom patterns: The current A-share trend is very similar to January 9 of this year—both are characterized by continuous declines followed by a failed rebound at the 5-day moving average, then experiencing another round of market crashing, ultimately forming a second bottom above the half-year line support before rebounding. The historical pattern provides important references for the formation of this bottom.
In summary, A-shares are very likely to welcome a phase low in the next couple of days, with limited downward space afterward: under optimistic expectations, today’s 3816 points may already be the bottom; even if it does not meet expectations, it may only drop to above the half-year line at 3777 points, which will provide strong support, so there is no need for excessive panic.
