The "Flash Collapse" Of Stocks And Indices Is A Kind Of Abnormal Market Trend.

For some time, the phenomenon of "flash collapse" of stocks has been continuous. However, people generally treat it as a case. It is considered that this is an isolated market where individual stocks are affected by rumors or events.

Indeed, it does seem to be so. Whether it is the stocks of the fog, or the revival and Wanda stocks and bonds, when they appear "flash collapse", although they also have an impact on the market, they are relatively limited and will soon be repaired.

Therefore, in the eyes of some investors, it is considered that as long as the stocks held by them are not "flashover", this is indifferent, or they can make the corresponding stock market accordingly.

But early this week, the market has taught these investors a profound lesson, because the index also showed a "flash crash" on that day.

On Monday morning, the stock index remained high, and the Shanghai composite index had reached 3230 points, the highest since mid April.

But at this time, the market suddenly dived, the lowest point to 3139 points, which is the lowest in nearly a month.

When the sky is high and low, it reaches 91 points, and it appears in less than 20 minutes.

This trend is very consistent with the characteristics of "flash collapse".

Index "flash collapse" is a very rare phenomenon. Why does it appear now, and what inspiration does it give investors?

As we all know, if the macro market or policy changes have led to a fall in the stock market, then the general trend of decline will appear at the opening stage, and the spread of this situation will also result in a sharp fall.

The difference between "flash collapse" and "sudden collapse" is the sudden collapse of the market when there is no obvious sign.

If we say that some stocks may cause people's concerns about their fundamentals because of a report or a rumor, triggering a sudden increase in the selling price and a sudden collapse of the stock price, then there is basically no such situation for the index. After all, the possibility of the change of the fundamentals of the enterprise may be relatively large, and the macro and policy sides that restrict the market are usually relatively stable, and will not change instantaneously, leading to the change of the whole market trend.

Therefore,

The reason for "flash collapse" is still to be looked up from the disk.

As for this week, the news of some gem's heavyweights' performance has been constantly fermented, not only has the price of related stocks "flashed", to a certain extent, it has also triggered investors' general worry about the stability and authenticity of the whole gem, as well as the reliability and continuity of the profit mode, making the growth enterprise board further expand its decline on the basis of the continuing decline.

The resulting shorting energy is not confined to the gem, it will expand to other sectors.

As a result, the "flash collapse" of individual stocks has evolved into a "flash collapse" of the plate, and its further development has jeopardize the market index.

Conversely, at that time, the market index was rising under the weight of a few heavy weights, but after all, there were few followers.

The heavier the fear, the more worried they will be in the "pull index".

Although this view is superficially ridiculous, it can not be denied that when many people hold such a view, the operation of the market is likely to be affected by these factors.

The result is that no matter what the macro level, fundamentals and policies are concerned, they choose to sell stocks.

In this way, the "flash collapse" of the index is inevitable.

Objective and strict, it is a continuation and development of "flash collapse" of stocks.

Of course, for the impact of the market, the index "flashover" ratio

"Flash collapse" is undoubtedly much larger.

Obviously, it is an abnormal market trend, whether stocks or indexes.

In practice, it may be hard to avoid the sudden collapse of individual stocks, but if this becomes a common normality, it should be vigilant.

If you think that you have nothing to do with yourself, or even feel that this is a "education" for some investors, and completely ignore the real and potential impact on the whole market, it is undoubtedly very dangerous.

The index is the comprehensive expression of the trend of many stocks. When the trend of stocks is disordered and irrational falls, we should not seriously guard against and prevent them from developing.

Although the stock market rebounded a few days after this week and broke through the previous high points, people still have to firmly remember the lessons of "flash collapse" of stocks and indices, which, after all, have done too much harm to investors.

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