Yesterday, the Chinese market once again exhibited an exceptional trend—'the dollar rises, everything falls', but the Chinese stock market was not among the 'decliners'.

· First, the decline in other markets is because investors realized that they overreacted to Powell's statement last Friday (a bit of Jackson Hole syndrome). Powell only stated what the market expected and did not make excessive commitments—he merely said that the threshold for not lowering interest rates has increased significantly, but if 'core PCE, non-farm employment, and CPI' are all hot, it is still possible to remain steady in September (of course, a 25 basis point rate cut in September is highly probable). It is worth noting that the market's expectation for the Fed to cut rates by 25 basis points in September is 84%, which has not been fully priced in. Even when Powell hinted at a rate cut last Friday, this remained the case.

· Second, the U.S. dollar index rose by 0.73%, almost recovering all the losses since last Friday. However, in comparison, gold and the U.S. 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. From now on, every small move in the A-shares will be highly valued by the market.

From a technical chart perspective, the Shanghai Composite Index has broken through an exceptionally large triangular pattern, and a golden cross has appeared at the weekly level.

Additionally, relative to the valuations and trends of U.S. tech stocks, Chinese tech stocks have significant room for catch-up.

But strangely, the mainstream voice in the market is still silent on 'Chinese bulls', and overseas funds still hold a conservative view on China. This is both an opportunity (initially overlooked) and potentially a risk (the fundamentals have not fully convinced foreign capital, and this breakthrough has a nature of 'emotional breakout').

This breakthrough in A-shares indeed has the flavor of 'overlooked initial rise', especially in the context of a general decline in overseas markets, it appears even more abrupt, but short-term attention should be paid to overheating phenomena. If the U.S. stock market experiences a 5-8% correction, it will be hard for A-shares to remain unscathed.