Individual stocks are a sight for sore eyes, especially with the ST sector experiencing a wave of limit-downs, the decline is so severe that it feels like even the roots of the leeks are being pulled up! Who can withstand such a plunge in individual stocks, a bottomless pit-like downward spiral that leaves 90% of shareholders in the dark, literally eating noodles in the dark – this is the current state of A-shares today.

Last week, individual stocks showed a bearish trend, but today they began to accelerate and fall with increased volume, with the number of limit-down stocks quickly increasing to over a hundred, and hundreds of stocks falling more than 5%; the decline in individual stocks is indeed unbearable to watch. What is the reason for such a tragic fall in individual stocks?

Reason one: The trigger for the tragic fall in individual stocks is the dumping by ultra-large capital, which is driven by two factors: the desire to "mow the leeks" (a metaphor for taking advantage of inexperienced investors), forcing retail investors to sell at a loss, and the other factor is selling thematic stocks to buy blue-chip stocks, hiding in blue-chips to avoid risk. The exodus of ultra-large capital is the spark for today's tragic fall in individual stocks.

Reason two: Pessimistic sentiment is spreading, and individual investors are panicking and selling off, increasing the downward pressure on individual stocks, leading to today's tragic decline in A-shares. Mainly, A-shares have been falling on a daily basis, and as the duration continues, investors see no hope for individual stocks and cannot stand idly by watching their stocks decline, so they choose to follow the trend and sell, resulting in today's pessimistic sentiment-driven sell-off in A-shares.

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Reason three: Main force capital is engaged in dumping, and the main force is the strongest dumper in A-shares. It is believed that everyone knows that main force capital is almost desperately cashing out every day, at least more than ten billion in funds. At the rate of capital withdrawal by the main force, the secondary market funds are being drained. Can the stock market avoid a significant drop? Similar to today, the main force capital has a net outflow of over thirty billion, and such a rate of outflow is truly terrifying.

Reason four: Blue-chip stocks collectively turned bearish and dived, becoming accomplices in the tragic fall of individual stocks. For example, in the morning session, the cyclical metals sector saw increased volume and a sharp decline, followed by a collective downturn in the three major financial sectors. First, the securities sector dumped, then the banking sector fell, and the most detestable was the insurance sector, with insurance stocks rallying and then diving back down. It can be affirmed that the dumping by large-cap stocks led to the tragic fall in individual stocks.

Will A-shares continue to sell off tomorrow?

Following today's tragic fall in A-shares, panic selling has emerged, and pessimistic sentiment has rapidly soared. The most critical point is that the Shanghai Composite Index has broken through the last support level, and it is feared that there will indeed be an accelerated sell-off tomorrow.

It is predicted that A-shares will continue to decline tomorrow, approaching the 3,000-point threshold. The market will first probe lower in line with the trend, and soon after, it will receive a counterattack from the bulls. After the counterattack, it will quickly return to a downward trend; this means that tomorrow's A-shares will be dominated by bearish sentiment, and whether there will be an accelerated sell-off depends on blue-chip stocks and whether the funds in the market will sell without regard to cost. In summary, the outlook for tomorrow's A-shares is bearish.

The reasons for the belief that A-shares will continue to fall tomorrow, either through an accelerated decline or a fluctuating decline, are as follows:

1. The panic selling triggered by today's tragic fall has already set in, and pessimistic sentiment is rapidly escalating.

2. The Shanghai Composite Index breaking through the last support level indicates a potential for further decline.

3. The behavior of blue-chip stocks and the selling pressure from market funds will be key determinants of the market's direction tomorrow.1. The Shanghai Composite Index has already broken through the annual support line, indicating that the bears have won, and a new round of adjustment has officially begun. Once this new round of adjustment starts, the space for decline will open up.

2. Following today's sharp decline in individual stocks, panic selling has emerged, with market funds selling indiscriminately. When the concentrated selling of cut-loss shares occurs, it will inevitably trigger a strong selling pressure, igniting a forceful downward push.

3. The bearish force is growing stronger, with each round of decline seeing short-selling profit funds driving the market down. This short-selling capital will help accelerate the adjustment of A-shares; especially during each adjustment, the bearish force ferments, aiding A-shares in a wave of selling.

From the above analysis, it is understood that the main reasons behind today's sharp decline in individual stocks are fourfold: large capital driving the market down, pessimistic sentiment selling, main force capital driving the market down, and the sharp decline of heavyweight stocks, all of which are unfavorable factors. Due to these factors driving the market down, the outlook for A-shares tomorrow is very unfavorable, and a continuation of the decline is inevitable.

For safety reasons, to avoid risks and to worry about the arrival of a new round of downward adjustments in A-shares, investors must control their positions, manage risks, and wait patiently for opportunities to buy low after the adjustment.