Hello everyone, today is September 5th, Thursday morning. The stock market has closed for the morning session. Today, the A-share market once again broke a new low at 2780 points, yet many people don't feel as much pain as before. Do you know why? What about the future market trend? Please watch carefully and patiently, and I will explain it to everyone in three minutes.
Firstly, the A-share market opened slightly higher on Thursday, then broke a new low at 2780 points. The market volume was reduced by half, with a transaction volume of 330 billion, and it rose slightly. More than 3,700 companies in the two markets went up, while more than 1,300 went down. Among them, 48 companies hit the upper limit, and 10 hit the lower limit. The main funds did not flow out significantly today. The sectors that saw the most capital inflow today were railway and highway, internet services, software development, photovoltaic equipment, computer equipment, whole vehicle manufacturing, and so on.
Secondly, many people say that the A-share index has broken a new low again. Today, the Shanghai Composite Index broke a new low at 2780 points, and the adjacent Hang Seng Index and Hang Seng Technology Index are also down. In the morning, the Shanghai 50 Index, Shanghai Composite Index, and CSI 300 Index continued to break new lows during the session, but I will still say that although the index has broken a new low, many people don't feel as much pain. The specific reasons are as follows:
The first reason is that after the bank stocks hit a historical high on August 28, I mentioned that bank stocks would fall back and adjust. At that time, I clearly pointed out that "when one whale falls, all things come to life." The bank sector and high dividend sectors would make up for the decline. I said that the CSI 1000 Index, Shenzhen Component Index, and ChiNext Index have already been equivalent to a second retouch and will start a rebound from an oversold position. As expected, these three indexes have been rebounding and rising for six days today, and they have not broken a new low again. Moreover, five out of these six days have seen an increase, with only Monday seeing a decline. So I say it doesn't hurt as much for many people.
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The second reason is that we can clearly see from the entire market that the sectors that have been fluctuating and falling back and adjusting in these six trading days are the bank, high dividend, and sectors that were in a high position in the first eight months and have made up for the decline. That is to say, the previous five major banks have all hit a historical high and are making up for the decline. Those who have been eating meat before, it is normal for these sectors to make up for the decline.
However, in the past six days, the entire market has basically been in an oversold position at the bottom, and five out of six days have seen a rebound and rise. Among them, light machinery, commodity cities, mineral batteries, new-type tobacco, electrical appliance chains, electronic identity cards, HJT batteries, remote office, solid-state batteries, digital currency, pharmaceutical commerce, cultural and educational leisure, photovoltaic equipment, internet finance, smart wear, photolithography machines, wireless earphones, humanoid robots, warehousing and logistics, internet celebrity economy, blockchain, multimodal, industrial mother machine, OLED concept, and so on, have all increased by more than 5% in six days. Among the 513 sectors in the A-share market, 424 sectors have risen, and the individual stocks have been more up than down in the five-day market in these six days. This morning, 3,700 companies went up, and 1,300 went down.
The third reason is that regardless of the well-performing sectors. The interpretation of the news is basically at the bottom of the oversold, with policy benefits, and driven by events, the sectors have counter-attacked and risen in the past six days. Due to the market's 220 million stock investors, many stock investors rely on common sense to invest in stocks. Although many are over 50 years old and have eaten more salt than I have, most people rely on life common sense to invest in stocks, and 90% of the market's stock investors are not professional. Let's take a look at the sectors with many retail investors that have also rebounded recently, such as the securities sector, which has rebounded in the past six days, and the photovoltaic new energy sector, which has been oversold for a long time and has also rebounded in the past six days. So the index has broken a new low, but many people don't feel as much pain.
Thirdly, the question arises, how will the A-share market perform in the future?
First of all, I still want to make my point clear. On August 28, I mentioned that the A-share market style has switched, and the high and low have switched. The sectors at the bottom that are oversold are rebounding. The sectors like banks, high dividends, and those in high positions are making up for the decline, and they are still making up for the decline, and it has not been completed.
Secondly, the CSI 1000 Index, Shenzhen Component Index, and ChiNext Index, which represent the bottom oversold sectors, have rebounded and risen for six consecutive days without breaking a new low, and five out of six days have closed up. Today, these three indexes continue to close up, and the adjustment time has been nearly 89 days, so there is hope for a continued rebound.Finally, the weight index Shanghai 50, CSI 300, and Shanghai Composite Index have broken new lows again. Today may be a slightly stable day with reduced volume, but it does not yet indicate that the adjustment of these three major indices has ended. However, even if there is a slight pullback to the golden section of 0.191 at 2738, it might only be a matter of a few dozen points. So, continue to endure, and believe that the dawn is almost here.
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