Yesterday, the Chinese market exhibited an exceptional trend—'the dollar rises, everything falls,' but the Chinese stock market did not fall.

· First, the decline in other markets is because investors realized they overreacted to Powell's remarks last Friday (a bit of post-Jackson Hole syndrome). Powell merely stated what the market expected and did not make excessive commitments—he only mentioned that the threshold for not cutting interest rates has increased significantly, but if the 'core PCE, non-farm employment, and CPI' are all hot, there is still a possibility of holding steady in September (of course, a 25 basis point cut in September is very likely). One point to note is that the market's expectation for a 25 basis point cut by the Fed in September is 84%, which has not been fully priced in. Even after Powell hinted at a rate cut last Friday, this remains the case.

· Second, the US dollar index rose by 0.73%, almost recovering all the losses since last Friday. However, in comparison, gold and the US stock market only retraced part or a small portion of last Friday's gains, indicating that there is still room for a 'second decline.'

· Third, the Chinese stock market is an exception; not only is it rising, but it is also experiencing a breakthrough rise. In the future, every small movement in A-shares will be highly valued by the market.

From a technical chart perspective, the Shanghai Composite Index has broken through an enormous triangular formation and has also shown a weekly golden cross;

Moreover, relative to the valuations and trends of US tech stocks, Chinese tech stocks have significant room for catch-up.

But strangely, the mainstream voice of the market is still silent on the "bullish outlook for China," and overseas funds remain conservative in their views on China. This is both an opportunity (initially overlooked) and potentially a risk (the fundamentals have not fully convinced foreign capital, and this breakthrough carries a nature of 'emotional breakthrough').

This time, the breakthrough in A-shares indeed has a flavor of 'the early stages of a neglected rise,' especially standing out against the backdrop of a general decline in overseas markets, but short-term attention should be paid to overheating phenomena. If US stocks experience a 5-8% correction, A-shares will find it difficult to remain unscathed.