Stock Market Outlook: The Market Will Quickly Move Away From The Bottom Area.

The central authorities announced that from 2016 to 2018, 303 major pport infrastructure projects will be promoted, involving a total investment of 4 trillion and 700 billion yuan.

this time

This is the largest investment plan that the government has introduced. It will greatly boost investor confidence and make good headlines. The valuation of these blue chip stocks has dropped to the lowest level in history. The volume has shrunk to the extreme and has the conditions for changing the market. On Monday, the "one belt and one way" sector, especially the high-speed rail sector, has shown outstanding performance, which is stimulated by this good news.

The major investment plan may become a catalyst for the start of blue chips.

Investment in high-speed rail in the future may continue for many years.

China's high-speed rail has been opened in many major cities, but there are still a large number of cities that do not have high-speed trains.

The high speed rail has changed our lives, especially in China's big cities. The population is relatively dense. There are still some problems with pportation, just like planes. For example, it is often late.

The advantage of high-speed rail is still very obvious.

On Monday, China's largest overseas RQFII A ETF - South FTSE China A50ETF received more than 200 million fund units' net purchases, that is, about 2 billion yuan of RMB capital flows into the ETF net. Fund managers will buy A shares.

Recently, Shanghai and Hong Kong through the continuous flow of funds, noon today

Inflow of more than 1 billion yuan, indicating foreign capital's recognition of the value of A shares.

This also verifies the article I wrote in May 5th after visiting many Wall Street agencies, "Wall Street agencies say that the proportion of A shares will be increased gradually".

From a historical point of view, almost every foreign investment can successfully copy the bottom of the A shares. This time, a large number of foreign investors have entered the market, which has greatly boosted the confidence of investors and become a catalyst for big changes.

I think this round.

There will be strong sustainability, as the sector has been well adjusted before, and many stocks are only 70 percent off of the price and some are even lower.

Now, from the valuation point of view or from the absolute stock price, it has dropped to about 2000 points, and investment opportunities have been highlighted, which has already attracted some long term funds to enter the market.

At present, the bottom features are already very obvious. How much time we wait and see is just waiting for us, without losing our views and money.

There are only two options for those who are still short positions.

According to statistics, many short positions are very low, including a large number of private equity, large households, public offering funds, insurance institutions and so on. Once the market breaks through, a lot of buy-out will be triggered and the market will be upturned.

Nowadays, people in empty positions are more stressed than those in full positions. For many people, it is even harder to take time off than to hang up.

It is still the best time to enter, and the favorable factors will be gradually fulfilled in June, which will open the second round of rising prices.

And blue chips are the best choice to drive the big market.

We will continue to pay attention to the blue chip sector, including military and securities companies.

June is a month of change. First of all, from the perspective of Lido, Shenzhen Hong Kong pass may be announced in June. In mid June, A shares are likely to join the MSCI index, and pensions will also enter the market starting in June.

But there are also some bad factors, for example, the Fed may raise interest rates in June.

But judging from the market reaction of the Fed's first interest rate increase in December last year, we would think that it was negative.

Its impact on the market will not be so great.

In May, the market has been fully adjusted, and the Shanghai stock index has shrank to bear market level.

In addition to the two days of fusing, trading volume of Shanghai stock index in the previous trading days has reached a new low of more than two years, which means that the market has reached the turning point of the change.

As the positive factors gradually materialize, the market will quickly move away from the bottom area and continue the "thousand point big rebound" that we first proposed after the Spring Festival.