On Monday today, the Shanghai and Shenzhen stock markets showed a trend of concussion consolidation and repair. The index once rushed higher in the early trading. The ChiNext stock index rose by more than 1.5% during the session. Then the Shanghai Stock Exchange and ChiNext stock index fell back and turned green, rebounded in late trading, and closed red.
After the market experienced a sharp drop in individual stocks and a slight drop in the index last week and Thursday, as well as Friday’s sharp drop in the index and a small drop in individual stocks, the market will inevitably go through a process of repair, so today’s disk turbulence is inevitable. Looking far ahead, what you see when the market pulls back is a good opportunity for low-sucking, while short-sighted ones have only risks in their eyes during the decline of the index. There was a big correction in the market last week, and the Shanghai Stock Exchange Index once returned to the 3500 area. The culprit of this wave of adjustments, I have already stated, is the big financial and blue-chip stocks, but more of it is the adjustment of funds at the trading level.
Recently, domestic policies have continued to be positive, but the performance of individual stocks and indexes has been in a mess. Had to make people sad. At present, from a fundamental point of view, the medium-term upward trend of policies, economy, and capital has not changed. Basically, the market has adjusted and panic-like declines have brought about a good opportunity to continue to get in the car and buy low. . I have reminded you earlier that the current bull market in my country’s A-share market is not over, but compared to the past, this round of bull market belongs to the slow bull. In the slow bull market, the index and individual stocks have risen and fallen repeatedly. Stop-and-go is normal, but no matter how you adjust and repeat, the ultimate focus of the market remains upward as always. With the current market capital still remaining abundant, the slow bull market of A shares will continue.
Now the market company’s mid-year report disclosure is also in progress. The company’s mid-year report performance will be the next major opportunity. With the continuous disclosure of China’s service performance, the market’s long market is expected to further open up. Therefore, I predict that in the second half of the year, the focus of the market will return to the performance level of the market. The main investment targets focus on growth, prosperity, and low-value investment main lines.
This month, domestic economic data for the second quarter will be announced, and the monetary policy meeting in the second half of the year will also be held, which is expected to set a new tone. With the acceleration of the A-share financial reform, the market’s trading rules will become more and more perfect, and those companies and investors who are opportunistic will eventually be swept out. The back and forth of the market and the improvement of trading rules have brought about the continuous elimination of leveraged traders and unsteady investors. At the same time, it has also targeted failed and opportunistic companies to become listed companies. Maybe this is the so-called removing the dross and getting the essence. At present, the A-share market is in the stage of financial reform. It can also be said that it is at a historic turning point. Especially before the full registration system is fully implemented, it is very attractive to overseas funds. It may be possible for short-term foreign investment. There is an outflow of funds, but as a “smart capital” northward capital, it will not give up the opportunity to eat meat in the medium-term because of short-term adjustments. Eventually, the inflow of funds will continue to increase. If you believe it, stick to it, be patient, give the result to time, and believe in our country’s fortune, and the market will eventually give you money and spiritual rewards.
Today’s market is undergoing restoration. It’s understandable. After all, after the market has experienced a significant decline, it will inevitably take time to restore market indicators and popularity. Looking at the trend of the Shanghai Index throughout the day, there are obvious signs of stabilization, but it is also facing a more serious situation. The embarrassing situation is that there is resistance on the top and support on the bottom. The current pressure on the Shanghai Stock Index is in the 3570-3580 area, and the support is at the half-year line and the 60-day line (3510–3520 area). The current 60-day line is close to the half-year line. There are signs of bonding upwards. Once the upwards is successful, it is expected that the next stage of the market will open. Looking back at the historical trend, the staged and repeated market must be higher than the half-year line on the 60-day line. Don’t be too pessimistic about the monthly market. I think the July market will be better than any January in the first half of the year.
Tomorrow, the Shanghai Stock Exchange Index does not rule out the occurrence of repeated fluctuations. If it does, don’t worry too much. The fluctuation is for a better upward breakthrough. There won’t be too many opportunities to be able to increase storage and continue to get on the car. The short-term resistance looks at 3550 first, and can break through the 3570-3580 area, and the trend resistance looks at 3630; the lower support focuses on the half-year line and the 60-day line area, and the important support looks near 3480. Tomorrow’s market, I think there are no more than two kinds, one is the turbulence to continue to harvest the sun, and the other is the pattern of going higher and opening higher. However, this has drawbacks and will leave gaps and is not conducive to the later period.