Hexun Investment Advisor Wu Zhipeng: Technology Short Squeeze Market, How to Operate Tomorrow?

Today, driven by Nvidia’s overnight earnings report, the market’s tech stocks, especially in AI, showed a strong rebound. Should we chase this kind of rally? Can the tech sector continue to rise tomorrow?

Wu Zhipeng from Hexun Investment Advisory said that major players are now reducing their positions. Nvidia’s news isn’t just a short-term positive; it’s a long-term positive. It has broken the market’s bubble concerns about the current AI industry chain. Nvidia’s performance says it all. Given this short-term news and the long-term positive outlook, why are big players suggesting reducing positions tomorrow? Because market fluctuations are never as simple as Hong Kong stocks, which have no limit up or down. When stocks go up, they need to correct. So, the current tech sector—semiconductors, liquid cooling, and others—are on the right track, but short-term corrections are likely. Tomorrow morning, investors should consider taking profits on the highs. If the stocks surge, take profits happily. If they open flat and don’t push higher, try to seize the early trading window to sell high and reduce positions. After a correction, look for low entry points. This is a short-term strategy.

If you’re holding long-term positions blindly, and believe in the long-term prospects of tech, you don’t need to do anything. This correction is also a subjective judgment. To summarize: the tech sector does have opportunities, but short-term risks are present, and a correction might happen—whether it will or not is uncertain. Whether you follow the big players’ approach of high selling and low buying depends on your own decision to protect your profits.