Taiwan Stock Night Session Plunges 1077 Points – Will It Hit New Lows This Week?

Many people were worried about Friday’s Taiwan index futures night session plunging 1077 points. What should investors do this week? Should you sell your stocks now, or add more positions? The answer: both options can be correct.

On Friday, the Taiwan stock market surged 3186 points, the largest single-day gain in history, just as I predicted—'crash equals profit.' However, the short-term crisis isn’t fully over. In my July 31 YouTube program, I warned about the risks of chasing rebounds after sharp declines. Although the market rebounded from the April 2025 crash low of 17,306 to close at 28,963 on December 31—up 67% in just eight months—nearly 2,000 listed and OTC stocks saw 60% remain below their annual moving average, trapped in losses for nearly a year.

This is why I emphasize: while the overall market may offer 'crash = profit,' indices don’t equal individual stocks. You can’t blindly buy now—wrong picks won’t make money. Even poorly chosen stocks may bounce due to market inertia, but August’s first week is critical for using the rebound to 'weed out weak stocks and focus on strong ones' to turn losses into gains quickly.

Additionally, in yesterday’s program, I analyzed that 0050 ETF and 2330 TSMC could hit涨停 (trading limits)—an extremely rare and powerful signal. But entering August, I recommend a 'watch large, trade small' strategy—not because large caps are bad, but because limited capital means buying large caps may prevent you from investing in small ones.

As you know, I conservatively forecast the year-end index at 50,000 points, optimistically at 55,000. I’ve projected 0050 ETF to reach 120–130 NT$, and TSMC to surpass 3,000 NT$. Based on July 31 closing prices, that’s about a 25% return in five months. But many mid- and small-cap AI stocks have been severely oversold—some down over 50%. A three-day涨停 rally could yield over 30% returns—something 0050 ETF or TSMC are unlikely to achieve in the short term.

Think back: how many memory, passive components, PCB, and silicon wafer stocks had three consecutive涨停 in May and June? How many gained over 100%? Once you realize this, you’ll understand why 'watch large, trade small' is the key to a turnaround victory!

Finally, TSMC, MediaTek, Delta Electronics, Hon Hai, Quanta, Wistron, and Wiwynn will enter safe P/E buy zones this week (August 3–7). Use the keyword 【803】 to access critical data on entry and exit points—fully explained in my July 31 YouTube program. If unclear, rewatch it—it’ll help!

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Source: Moore Securities Investment Advisory — Analyst Yang Yu-Hua

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