Why Does China'S Stock Market Feel Suffocating?

This week is dramatic. First, on Monday, the major indexes plunged, with the gem index falling by 5.11% on a single day, creating a new low in the past two and a half years.

Then the polarization took place. The market was rapidly reset in mid week and reached a new high level, while the gem index was weak.

Finally, the end of the shock, the blue chip quiet, the big green disk, and the gem for two consecutive days to rush down, but can maintain the red disk.

In the end, the weekly market rose by 0.48%, continuing the trend of slow down, and the GEM market fell 3.17%, breaking the position again.

China's stock market is a suffocating feeling against the backdrop of rising foreign investment.

The slump at the beginning of this week can be seen as a resentment of the new IPO increase last weekend. It can also be seen as an excessive interpretation of the development of direct finance after the establishment of the Golden Summit. But in the final analysis, it is the lack of confidence in the Chinese stock market and the loss of a large number of small and medium-sized retail investors in the bottom of the Pyramid stock market.

Therefore, despite the rapid reduction of the index by the index weight blue chip in the late stage, the majority of stocks have not been restored to the stock price. Instead, most of the stocks in the market have lost blood and weight, so there is no more money to catch up with blue chips.

We will analyze the trend of funds from Friday's disk.

It can be seen that, like the three days in mid week, the market still launched the power of blue chip, but failed to rebuild a single day's red plate (just a false line). What does this mean? Is it blue chip to be extinguished? Of course not, it is rotation.

However, if the rotation is more or more covered, or the rotation is too fast, then the blue chip market will soon be over.

The market on Friday only got red three times and lasted for only a few minutes.

But almost all the blue chips have been deployed.

Such a red should have deep meaning.

First, let the market create a new high level, making the technology still have the meaning of upward space; two, it is necessary to do a lot of temptation on the blue chip, so that some blue chips can be reduced by big capital; three, there are other blue chips that need to be tested to see if they can fish in troubled waters and take the baton of the next batch of rising plates.

Let's take a look at the performance of some blue chips.

In the past three months, leading blue chip companies have been leading the number of insurance stocks. However, such as Xinhua insurance, which has dropped sharply on Wednesday, and has been peaking for three days. At the same time, we can see that, along with last week's rally, insurance stocks are accelerating the technology trend of catching up.

By Friday, there was only one share of "Xi Shui shares" without insurance words. The stock was actually only a theme, that is, the 70th anniversary celebration of Inner Mongolia autonomous region.

The big blue chip China Petroleum has no longer been shown since it rose.

Bank stocks actually started to see the top of the band from Monday, and after half an hour on Friday afternoon, bank shares rose again, but after half an hour, they fell again.

Therefore, the big lines on Monday will be blamed for the lack of stamina in the banking sector.

The blue chip market's terminator on Friday still has to blame on the securities firms.

Brokerage stocks pulled hard on Wednesday and fell back on Thursday, bringing the blue chip market to the top of the band.

Just a day tour.

Then what did the three Lian Yang make in this week? It is the rally of the blue chip of the second line of periodic resources and the bounce of the early white horse stock.

Cyclical resources are iron and steel, coal and coloured (rare earth permanent magnets).

Of course, this topic is not finished yet. However, from the black commodity futures market, it is a significant callback at the high point of the front wave band, and the sign of the band top is also very clear.

Therefore, even if Friday and Datong coal industry benefited from the pre report increase, it would be difficult to conceal the phased bands of other resources stocks.

Colored small metals including lithium, cobalt and titanium will also be the last ones.

Looking at Guizhou Moutai and GREE electric appliances, although the trend is still upward, the market is already getting worse.

In the band callback, the blue chip will still rotate, but the intensity of the wheel will be weaker. The speed of the rotation between the blue chips will be quickened, so that it will be strong and soon, and it will produce a state of being soft and not hard.

Through the above analysis, it is not difficult to draw a conclusion that the current blue chip market is not financial, not white horse, nor is the price of resources rising, but it is only an extension of the 222 shares of MSCI.

In the early morning of June 21st, Ming Sheng announced that the A share would be included in the MSCI emerging market index.

This is why the blue chips rose this month and the blue chips in the middle of the week accelerated.

On Friday, A shares entered MSCI for a full month.

During the month, 159 of MSCI's 222 stocks rose, and more than 20 hit a record high.

A shares have never been separated from the nature of speculation, even big guys.

Over the past year, the number of small and medium-sized retail investors in the stock capital game has been getting smaller and smaller, and the sustainability of speculation has been getting worse and worse. Therefore, it has begun to switch to the stage of speculation blue chips.

The speculation of blue chips, like commodity resource plates, is cyclical.

At first, when the news came out in April 1st, a group of funds had been fired for more than half a month. After that, they began to differentiate and then began to adjust the whole line.

So, after hyped up, even if the funds need to hold together for heating, it can not be divorced from periodic callbacks.

The current MSCI blue chip hype market, like the Xiong an plate, is expected after the MSCI full moon.

The hype will also enter into differentiation from Friday, and it will face full adjustment after differentiation.

In the recent silence, there are still some opportunities for rotation, and the chance of smaller votes will be greater.

So, next week, we have entered the intensive farming period.

From yesterday's performance of the gem, that is, half an hour of excitement and two hours of continuous decline, it is not good.

And Friday morning again pulled the lead again, and continued to fall.

But in general, relatively relatively strong, we expect that this week after the blue chip continued to squeeze, we began to have funds to intervene in small and medium enterprises, only to maintain the red plate of the gem index. If there is no money to intervene, everyone will call it now.

It will only be sparse.

From the small and medium-sized board index, actually this index has also been reset, and since 2016 has entered a 1 year and a half box shock mode, has now broken through all the EMA, once the box breaks through, this index may be a round of how tall the bull.

On Friday, the development plan of artificial intelligence fell to the ground, but it did not allow the collective limit of the intelligent sector. This is mainly due to the fact that the leader of the subject is the white horse blue chip, which has gained too much in the short term.

However, the introduction of artificial intelligence development plan can also enlighten us, and new industry development and subdivision industry planning will come out one after another.

This makes the majority of stocks except the 222 stocks in MSCI will not be as bad as imagined. This Monday's crash has left room for growth stocks, or stock selection can be considered from the perspective of "map" reincarnation.

And there are still some opportunities for blue chips in the rotation. There are still space for bullet trains in the short term, such as high-speed rail, building materials, aviation, leasing real estate and so on.

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