Market Shakeout Ends! Taiwan Stocks Surge 1783 Points in Violent Rebound, Margin Clearance Signal Emerges, Oversold Stocks Poised for Explosive Recovery!

Taiwan stocks surged 1783 points, rewriting the record for the largest single-day gain! Margin floating positions have been cleared, with maintenance ratios dropping to low levels. Market positioning now meets the key conditions for a bottom rebound. Historical patterns suggest the start of a valuation recovery—how can investors avoid blindly chasing highs and precisely master range-trading rhythms and earnings season trends?

〈Shakeout Complete: Index Enters Valuation Recovery Phase〉

Taiwan's stock market rebounded strongly today by 4.2%, closing up 1783 points—the largest single-day gain in history. Trading volume declined to NT$835.6 billion. Yesterday, overall margin balances dropped noticeably, and maintenance ratios fell to around 143%, a relatively low level. Combined with the end of broker margin calls and forced selling pressure in early trading, the market now meets the basic conditions for a deep-rebound.

Reduced volume doesn’t mean lack of buying interest—it reflects market caution after recent volatility. Short-term funds remain cautious. Drawing from the 2024 yen carry trade deleveraging experience, when margin maintenance ratios dropped to similar levels, the first rebound wave typically recovered about half of the prior correction. Based on this historical pattern, the weighted index’s technical rebound target could be around the 45,000-point zone.

〈Rebound ≠ Buy Signal: Trade High-to-Low〉

Although Taiwan stocks posted a historic rebound, this doesn’t mean investors should chase prices blindly. Teacher Zhilin previously guided members to strictly follow discipline at lows, adding positions gradually—capitalizing on the improved risk-reward ratio after the shakeout, not suddenly turning bullish after the surge. After today’s sharp rise, short-term volatility and position turnover are inevitable. Market focus will now shift to the US tech earnings season—especially major tech firms’ latest guidance on AI infrastructure and capital spending, which will directly impact valuations for Taiwan’s semiconductor, ASIC, ABF substrate, and thermal solutions supply chains. For the rebound to sustain, it cannot rely on sentiment alone—it must ultimately be supported by corporate earnings and capex data.

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〈Large-Cap Stocks Lead Recovery: Semiconductor Supply Chain Offers Entry Opportunities〉

Today’s market was led by large-cap electronics stocks. These companies previously saw irrational valuation corrections due to margin liquidations, NTD depreciation, and foreign futures short pressure. Once foreign short positions are covered, industry leaders with solid fundamentals and stable market positions are naturally the first to rebound. ABF substrate leader Unimicron (3037-TW) and ASIC leader Faraday Technology (3443-TW) both hit their daily limits today, while thermal solutions leader AcBel (3017-TW) rose over 8%. TSMC (2330-TW) closed up 3.88% at NT$2,410, becoming a core pillar of market confidence.

Some semiconductor supply chain stocks showed milder moves today, offering follow-up observation and gradual entry opportunities. Teacher Zhilin will continue adjusting strategies based on industry visibility, corporate earnings, capex trends, and margin position changes. This rebound isn’t about rushing back in—it’s about disciplined investors reorganizing their portfolios. We invite investors to download the 【Chen Zhilin Analyst APP】. Real-time updates will be shared instantly within the app, helping you master market rhythms with data. Weekly updates to the margin risk watchlist will help you avoid risks and lock in opportunities.

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