Lao Bao's words made the Air Force cry
It was made clear that there would be a rate cut in September, and the market expressed strong confidence that inflation would be suppressed after the rate cut. A considerable part of the funds for this wave of rise came from retail investors. After waiting and watching for more than half a year, retail investors finally took the bait and got on board.
Each round of rising cycle is generally divided into three stages. The first stage is when a small amount of bargain-hunting funds enter the market, the second stage is the institutional-led pull-up, and the third stage is when retail investors take over and pull up.
Now retail investors have finally entered the market, but I have long held a negative view on whether they have the ability to continue to buy. Even with the stimulus of the Fed's interest rate cut, global funds really can't find good investment targets. The released funds will only continue to idle in the financial system and cannot flow to enterprises and residents. It's not that retail investors don't want to take over, but they really don't have the money to take over. Once the market makers realize this problem, the market will see more serious panic selling.
Back to the market, I think this wave of pull-up is not sustainable. The pressure levels that need to be paid attention to above are US$65,000 and the high-pressure range of US$68,000-70,000. I will pay close attention to these two pressure levels in the next few days.
