Morning Trend | DAMAI ENT experiences a surge in volume and a sharp decline, is the risk of a retreat in new themes increasing?

DAMAI ENT (1060.HK) experienced a strong outflow of funds throughout the day on the 16th, with multiple large sell orders appearing during the session, leading to a surge in trading volume that attracted market attention. The stock opened under pressure, with frequent short-term selling pressure, following a collective retreat in the newly listed stock sector after a series of consecutive rises. The industry's heat has significantly declined, and the newly listed stocks rely on short-term speculation and follow-up buying; when the enthusiasm wanes, the distribution of shares occurs rapidly. On the news front, the risk appetite for funds in the ChiNext has significantly decreased, with short-term funds showing increased risk aversion, leading to a notable avoidance of high-valuation stocks. The market has repeatedly shown funding gaps, and in a weak environment, positive fundamentals struggle to effectively drive up prices, intensifying the competition in existing trades. Technically, the daily line has fallen below the important support level of HKD 0.81, further releasing short-term pressure. Currently, the market lacks policy highlights, and there is a scarcity of sustainable speculative themes within the sector, with rapid shifts between bullish and bearish sentiments. Observational sentiment is rising, and some rebound stocks have also been sold off by funds. The risk of fund withdrawal from the newly listed sector is increasing; if the volume continues to weaken without seeing major players supporting the market, the overall chance of a rebound appears slim. After technical indicators lose effective support, future market changes will rely more on intraday fluctuations and sudden positive news. Investors need to closely monitor the further outflow of short-term funds; after a sustained decline in high positions with increasing volume, they should observe the main players' support and policy dynamics for any sudden rally opportunities