He Xun Investment Advisor Li Peng: Opportunities are created by declines, risks are created by rallies

SadMoneyMeow · 2026-03-24T13:40:00+00:00

Li Peng pointed out that market sentiment has become panicked due to the long bearish candle decline, and attention should be paid to whether the rebound after the gap-up opening can be sustained. He believes that significant gap-downs and long bearish lines may be bottom signals, presenting opportunities for investors to build positions. He recommends focusing on stocks led by previous lower wicks, while avoiding stocks at high levels showing strong momentum and weak stocks. Opportunities arise from declines, while risks emerge from rallies.

SadMoneyMeow

2026-03-24 13:40:00

Abstract generation in progress

On March 24th, Li Peng from Hexun Investment Advisory said that yesterday’s long shadow caused extreme panic, but this morning’s sharp gap up has shifted everyone’s mood. Is the mood instantly changing? At this moment, everyone’s most concerned about whether this rebound can continue. I’ll explain in one minute. Regarding the downward trend with shadows, no matter how long it lasts, it is not the bottom until the decline accelerates. When a sharp gap and extended shadow appear, forming an oversold pattern, it is likely the bottom. A similar gap and extended shadow pattern occurred on April 7th last year. Whether it’s last year’s tariff war or this energy crisis trend, similar formations are likely to appear. Later, everyone can confidently wait for the index to gradually fill the gaps with small steps. After a strong opening this morning and a subsequent dip, this is a very good opportunity to build positions. Approaching midday, the index quickly rebounded, showing strong characteristics, indicating that market participants have reached a consensus. The inflow of funds here presents more opportunity than risk. However, today all 5,000 stocks in the two markets closed in the green, making stock selection very challenging. At this time, it’s safer to look for stocks that led with a lower shadow yesterday and turned red today. Avoid two types of stocks: one is high-position strong stocks, which may experience subsequent dips; the other is stocks that still perform weakly during market rebounds—don’t try to position or bottom fish. Remember, opportunities come from declines, and risks come from rises.

(Chief Editor: Cui Chen HX015)

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