Xu Yiding: Low Value Stocks To Resist Short-Term Shocks

This week, the Shanghai composite index broke through 2444 points in the securities market, but failed to stand firm. It shows that the competition is increasing and the short-term shocks are increasing or unavoidable.

At present, the stock index continues upward pressure, the first is the huge amount of long term hold up pressure.

Back above 2445 points, it was early 2011 to 2012. During that period, a large number of chips were stuck in the 2400 to 2480 spots for a long time.

Second, fundamentals will also exert adverse effects on the market in the short term.

In October, the official PMI was 50.8%, down 0.3 percentage points from last month, the lowest since May.

The downward pressure is still obvious, and the economic data in October will be released next week. The data is not optimistic and the psychological pressure on the market can not be ignored.

The more direct pressure comes from the strengthening of the air force.

The current round of market quotation has lasted for nearly five months since June, such as aerospace industry,

Generally, the conceptual plates such as sub new stocks have increased considerably, and most of these stocks are short of actual performance support in the short and medium term.

Thus, after accumulating a large number of lucrative profit chips, once the market fluctuates, it may quickly turn into a huge empty power.

From Friday's decline list, it is easy to see that stocks that have fallen sharply are generally medium and short term gains.

But, from

The trend is that the basic logic of the current round of market expectations and incremental capital driving has not changed.

First, from the perspective of capital environment, the market liquidity environment is expected to continue to be relatively relaxed.

The central bank's monetary policy implementation report in the third quarter confirmed that the central bank in September and October through the medium-term loan facility (MLF) to the commercial banks respectively put the basic currency 500 billion yuan and 269 billion 500 million yuan, the duration is 3 months, the interest rate is 3.5%.

It is not difficult to see the intention of the central bank to stabilize economic growth and to maintain a loose liquidity environment.

Second, according to the statistics of financial management on the grid, in the three quarter, the number of traditional high net worth customers' financial management, the fixed income trust products, declined sharply, while the private equity products increased significantly. On the other hand, the business department also welcomed the trend of opening accounts, and the customers with assets over ten million yuan increased significantly.

It can be seen that the trend of financial capital flowing into the stock market has been formed, and the possibility that the trend will soon be reversed is very small.

The continuous inflow of financial capital can be expected.

On the whole, the strengthening of the air force makes it difficult to avoid short-term market shocks, but the midline trend is still promising.

From a technical point of view, the 20 and 30 day average of stock index is expected to form strong support near 2380 points, while 2460 points above may become an important pressure level.

It is expected that the short-term market will be substantially oscillating in the 2380-2460 point interval.

From the perspective of the midline, the concussion will be the best period for the layout of the next stage.

On the operation, it is suggested that investors actively adjust their positions and share the stock market: they will reduce the theme stocks with no performance support, and then underestimate the value stocks.