The Adjustment Pressure Of A Shares Is Still At &Nbsp; The Bottom Has Been Gradually Approaching.

A few days ago this week, the A share market continued to fall, breaking down, but yesterday, the two cities successfully completed the "V" shape reversal, and the bottom picked up.

How should we view this trend? Does it mean that the bottom of the market has already been proved?

Agencies are busy adjusting positions?

In my view, the current round of adjustment shows a distinctly different from the previous characteristics, that is, the short selling power of the A share market has changed greatly.

In the early days, it was mainly based on economic growth expectations, industrial policy adjustment expectations, capital options for financial real estate stocks and other traditional industrial stocks to be reduced; but in recent years, the pioneers have quickly spread from pharmaceutical stocks to environmental protection, power equipment and other growth prospects, though definite, but highly valued stocks.

That is to say, the new round of short term energy shock is launched by high valuation varieties, and the first shock wave of financial real estate stocks has relatively declined in recent years.

Based on this, there is a view that

On the one hand, capital flows from high valuation to low valuation is the rule of capital flow.

On the other hand, it is related to fund allocation requirements.

For example, due to the rapid decline of the financial real estate stocks in the early stage, the allocation ratio of financial real estate stocks in the fund positions has dropped rapidly. However, due to the fund contracts, the allocation ratio of financial real estate shares has been put on the agenda as a result of man-made factors such as fund managers.

Correspondingly, environmental protection stocks, pharmaceutical stocks and other emerging industry stocks need to reduce the allocation ratio, so it has been sold in the near future.

Surge or slow down

In my opinion, the bulls have been working hard recently.

For example, this weekend's central defender's high pulse opened up quickly, which reflected the market after the crash.

This is also reflected in the real estate market on Friday this year to turn the tide.

At the same time, this is also reflected in the strong industrial capital began to enter the ranks of overweight.

This weekend, CSR announced a plan to increase its holdings of not less than 1 billion yuan in the coming year, which has greatly boosted the overall strength.

There are signs of increasing holdings of industrial capital, not just controlling shareholders, but also senior executives.

Although their purpose is to maintain stock prices or to increase issuance, after all, industrial capital conveys positive signals to the market with real gold and silver.

Moreover, the announcement of China South car and other industrial capital holdings also shows that these companies will not reduce their holdings of CSR shares during the increase cycle, which will help to weaken the market pressure on the sell-off pressure after the lifting of the restrictions on the sale of shares, and help to weaken the short selling power of the empty side.

Of course, in the end of this weekend, the sharp decline of environmental protection stocks, power equipment stocks and other varieties has not fundamentally reversed, so the market adjustment pressure still exists, the market adjustment trend may still be difficult to change.

However, as I mentioned before, I believe that the pace of adjustment may slow down, and that short term active funds will gradually improve, so that short-term opportunities in the A share market will emerge.

There are two types of stocks that can be tracked: first, stocks with low price and positive signals can easily generate investment opportunities, such as Min Fufa, South China Sea Development and so on. Two, semi annual reports are expected to have high expectations or have high expectations, especially in the recent adjustment of new shares.