The A Share Market Continues To Rebound And Rebound Is Still In Place.

The current A share rally is mainly a technical rebound.

Because since the adjustment in June, the Shanghai and Shenzhen stock index has received four consecutive months of K-line Yin line, which has leveled the highest record in the past ten years. Therefore, the market in October has a higher expectation of the market, and the Shanghai foreign market has ushered in a rebound after the fall of September, thus stimulating the A share market to overshoot and rebound.

Meanwhile, as the volume of trading increased this week, wait-and-see agencies began to intervene, and the activity and effectiveness of rebounding increased.

Taking into account its additional cost, it is expected that there will be room for rebound in the future market and sustainable upward trend.

From the upper resistance point of view, in mid August, there is a strong resistance from 3388 to 3490 points, while the Shanghai composite index is at around 3500, so the target position is temporarily set at 3450 points and 50 points below.

Of course, the current rebound is a technical rebound. It is hard to say that the bottom is complete after a single bottom, and there is still downward pressure on the economic fundamentals.

It can be confirmed.

Therefore, there will be repeated bottoming process after the end of this round of bounce, though not necessarily low, but this process is hard to avoid.

In September, the A share market continued to clear up the allocation of funds, and the negative factors were released.

Although the drop in leverage is still in progress, the balance of financing remained between 900 billion yuan and one trillion yuan in September, and the balance of financing declined, but investor sentiment did not appear too panic, indicating investors' confirmation of the bottom of the market.

Investors worried about the Fed's interest rate increase in September, which will not become a factor of market suppression in the near future.

The volume of A shares rose in early October, indicating that the short-term bottoming of A shares has been completed.

Follow up market continues to rise a higher probability.

With the coming of the "13th Five-Year plan", investors' attention to the strategic layout of the country has been continuously strengthened, and the market has been heated up.

At the same time, China's economy is still in the bottom of the process, the bottom economy policy will also enhance market enthusiasm.

Coupled with the recent market expectations for easing monetary policy.

From these aspects, A shares are expected to continue to follow.

Since October, large asset allocation has shown signs of returning from stocks to bonds. The short-term stock market is already showing up. The driving factors include: first, after 3 months of adjustment, the stocks with high valuations are relatively cheaper, many return to the beginning of the year, and the valuation advantages are highlighted; second, despite the fact that business performance is concerned,

The net profit of A shares outside the company declined overall, but

Three the quarterly report continued to improve, becoming a flag flying in the weak market; third, the continuous warming up overseas constitutes a positive mapping to boost the risk preference of A shares; the fourth, eighteenth session of the fifth plenary session is about to be held, and the Central Committee's Guiding Opinions on the formulation of the "13th Five-Year plan" are announced, namely, the reform is expected to increase; fifth, the liquidity is abundant, and the yield of the 10 year treasury bonds has fallen below 3%.

These driving forces have not yet been broken before the market is expected to continue to shock upward, and continue to pay attention to whether these reform catalysts can be fulfilled: first, the Fifth Plenary Session of the Central Committee will probably continue the reform of the Third Plenary Session of the market reform on the expected market reform; two, whether the upper limit of employee stock ownership can be broken through in the supporting policies of state-owned enterprises reform; and the three is the new economic tax reduction policy.

If these catalysts are not fulfilled, then the current market is only a rebound in stock market based on stock plus and theme wheeled.