Hong Kong stocks 6.24 review Holding half position, wait and see
After two consecutive days of significant gains, the A-share market has firmly stood above the 3,400 mark, while the Hang Seng Tech Index has broken through the 60-day moving average without looking back, and the Hang Seng Index is even approaching its previous high.
There were only two full days to add positions, and amidst the doubt, could this be the start of a bull market?
No way, I haven’t added enough to my position yet!
Just kidding, of course. Half a position is already plenty—no more adding.
As mentioned in the review titled 'East Rises, West Falls,' China and the U.S. are currently in sync. Initially, the A-H shares corrected first, and we could have expected a rebound first. Unexpectedly, before the U.S. market even corrected, we’ve already bounced back, adding another layer of uncertainty.
The U.S. market remains resilient tonight, with the entire market waiting for Powell to turn dovish. No matter what, the greatest stock market manipulator in history remains the Grand Marshal Trump.
At this juncture, going all-in is still premature. Although bull markets always arrive amid doubt and rise amid fear,
it’s important to remember that a true bull market doesn’t flash by in an instant, nor do all sectors and stocks rise simultaneously. We only need to catch one wave in the bull market to succeed.
Today’s market action shows that the harder the fall in the past, the higher the rebound today. Typical examples include companies like UBTECH, ZongMu Technology, and YoubiSelect. Their fundamentals are completely irrelevant—these startups are hard to judge fundamentally. But just know that for trendy concepts, wild swings are the norm.
To make money, the first step is to acquire low-cost positions, and the second is to hold onto them.
When it’s unclear whether this is a short-term peak or the start of a bull market, the safest approach is to add positions in stocks that haven’t rebounded yet.
A disclaimer here: the best strategy is to have a rough understanding of a company’s fundamentals before buying. If you’re afraid of missing out, use the strategy I mentioned for stock selection—at least you won’t be left holding the bag at the top, and the chance of recovery after being trapped is higher.
In this kind of broad rally, discussing individual stocks would be too much—there’s no way to cover them all. If you have questions, feel free to post them in the comments.
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