Initiative Selling Can Not Be Underestimated Against The Stock Market.

When the Shanghai composite index effectively broke through the top of the box from 2850 to 3256 points, the market cautiously arching upward, creating a new high every time, is bound to trigger a new round of sell-off.

On Wednesday, when the Shanghai Composite Index reached 3447 points and entered the intensive trading area, the stock market dropped 100 points and accompanied by more than 800 stocks hitting the limit.

It turns out that the 3258 points on the top of the box need time to prove whether it becomes the solid bottom of the new box. Therefore, exchanging time for space is the mainstream of the current market. This trend is based on the following points:

First, at the end of October

The main point of time.

In the plan, the end of September and the end of October are all the time limits. The OTC distribution of several big brokerages will be cleared at the end of October. After the cut-off of the umbrella trust ports, they will be cleared at the end of October and require a sale. So this week, we also saw the situation in the last few weeks. After the market was pulled up, the sell-off broke out. This categorical selling is not a normal trading behavior, but a clearance. Even though we all know that deleveraging has come to an end, the pressure always seems to linger. Therefore, it always makes people feel that the leveraged data are true. This initiative sells and the damage to the stock market can not be underestimated. In the original deleveraging

Second, it is not easy to leap the line of last year.

3256 points on the top of the front box, to build a new box, the upper line is the annual line, now the annual line has moved up to 3525 points, the line is now up to 4 points per day, and tends to be leveled. The annual line represents the average shareholding cost of the stockholders in a year. This is the pressure area of the market. It needs a long time to polish up the annual line and needs repeated shocks. Now it has just climbed out of the bottom of the market. It is not so simple to jump over the line of last year. Only by repeatedly collating that the market is not going to wear 3256 of the floor of the box, can we break through the annual line before breaking through the line, and now it seems that there is still a lack of conditions.

Third, the huge amount above.

This is the biggest driving force for the market.

During the year of the stock market crash, management took the largest bailout in history. The funds invested are generally estimated to be between 4 and 5 trillion yuan, although there is no exact data, and the structure of these funds is diverse. The average holding cost of these funds is about 3800 points of the Shanghai Composite Index. Due to the huge scale, the shipment is not easy, even if the Shanghai composite index is raised to 3800 points.

Easy to leave, big money still can't move. Because of the cost of these funds, the stock is spent there, the annual interest expense is quite amazing, and these funds come out sooner or later.

The previous 2850 to 3256 points of the box for two months, during the period is also a lot of adventure, the final choice of the direction is to break.

Now we have only stayed in the new box for less than two weeks, and the time period is far from enough, so we must remain patient.

In terms of patient shareholding and short-term experience, the current trading opportunity is the best time to make the difference, because the stock market is jumping up and down, which is neither good nor bad. The best time for you to come back and make the difference is the process of coming and going back and forth.