Stock Market Interpretation: Intensified Shocks + Hot Wheels

Despite the drop in height, the market continued to be on the offensive on Tuesday, and the hot spots were colored to support the Shanghai stock index and small cap stocks were relatively active.

However, the sell-off of the volume price and some of the stocks in the late market indicates that the short term market has been unsustainable and the approximate rate will enter the stage of shock consolidation.

People should choose their own themes and stocks from the three dimensions of policy driven growth, clear performance growth, and stagflation based on their own characteristics and operation techniques.

First, technically, whether it's stock index or not.

At present, they are all far away from the 5 day moving average. The overbought characteristics are obvious, and the technical adjustment requirements for the short term rising are strong; and only by properly withdrawing the pressure and accumulation of the effective profit from the digestion of the profit making market, can the major indexes become more healthy and powerful, and the chips of the market become more healthy.

In this process, China can achieve a dynamic balance.

Second, the blue chip heavyweight shares of the leading securities companies began to split, and bank stocks were lower and lower to continue to be strong, but from the point of view of the initiative to adjust more obvious signs, the market outlook should not be a substantial adjustment.

Finally, the sell-off of some stocks in the late market also highlights the structural risk of stocks after rising, and its role in stabilizing the index and stocks is obvious.

Generally speaking, the upward trend of the market is gaining more and more capital recognition. However, under the sharp sword of strengthening supervision and financial anti-corruption, "mad cow and fast bull" will be suppressed. After the proper consolidation, the market will continue to slow down.

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New expectations may be emerging in the market, that is, the expectations of long Niu long cattle.

1) the judgment of "bull market coming" is too much emphasis on long-term optimism and easy to associate with the previous logic of lever cattle.

Instead of "leveraged bull market coming back", it is "the deep involvement of the government in the pformation of long cattle and slow cows".

2) the market has indeed survived, and it is hard to fall back to 3000 or even 3300 points.

But at the same time, the important resistance level that has been reduced in the past will not be easily crossed.

The use of leverage will be manageable, and management will have enough chips to stabilize the market.

3) the determination of enterprises to actively seek pformation and the government's push for reform is fundamental to the establishment of a bull market.

Gem has continued to demonstrate its high growth in performance over the past three years. The recently launched 13th Five-Year plan gives the market a longer-term expectation.

The reform promoted by the government is the most direct impact on the stock market from the reform of state owned enterprises, from high-speed rail to shipping to aviation. Recently, the merger expectation of the telecommunications industry and tourism industry has also increased, and the IC industry has launched the biggest issue of additional financing.