U.S. stocks dipped slightly last night, so I guess A-shares will probably take a breather today.

Yesterday’s market looked okay, with the Shanghai Composite Index climbing up to fill the gap, but the momentum was clearly lacking and it softened towards the close. Funds are still piling into the Fujian sector, but differentiation has already begun—which means the smart money is pulling out. In my view, the Fujian speculation is about done; what’s left is just the tail end, with more risk than reward, so there’s no need to chase it anymore.

In Hong Kong, the Hang Seng Index dropped 319 points yesterday, and mainland bank stocks took quite a hit, so A-shares will likely be affected to some extent today. Now that the Shanghai Composite has filled its gap, today will most likely be a choppy, sideways session. The 3900 level should hold, but don’t expect much upside from the index; it’s more practical to focus on individual stock opportunities and keep a light position on the sidelines.

Right now, the market is betting on further Fed rate cuts. Personally, I think non-ferrous metals might have some potential going forward—worth keeping an eye on.