Stock Market Guide: This Rally Is The Bull Market Of Blue Chip.

There was no technical adjustment in the market on Monday, but on the contrary, the market's doubts were constantly dispelled through a strong upturn.

The index of early trading was low in the vicinity of the 5 day moving average.

In the morning, we should break through the suppression of 3250 points and do some trimming.

The market continued to exert its strength in the afternoon and finally closed at a high level.

SSE 50 has also swallowed up a new high after last week's line.

And gem refers to maintain a small finishing after the rebound, the overall performance is obviously weak.

In the short term, the three major indexes continue to show the trend of differentiation. The key is how long this differentiation pattern will last.

There is a kind of adjustment that is in the middle of the shock repair.

In the market.

Although the market does not have the conditions and environment of the bull market at present, the trend is just like the bull market.

The reason is still closely related to the strong performance of the blue chip market in the current market.

In fact, the Shanghai Stock Exchange 50 index, which represented the white horse shares as the representative of the first round of the rally, opened up the upside space of the blue chips. Then the financial giant three took the lead and then spread to the cyclical sector and the second tier blue chip companies to respond.

From the current only three representative

The performance can be seen.

Since the beginning of May, SSE 50 has been up and down in less than 3 months. Up to now, it has risen nearly 16%.

Its strong contrast is the performance of the gem. In the same period of the market trend, the overall decline is over 7%. In less than a month, the decline is more than 8%.

As for the most typical Shanghai Composite Index, the increase is less than 5% in the same period.

Judging from the divergence of the three major indices, market capitalization obviously preferred large cap stocks, and it is capital market that leads to market polarization, and this trend is still continuing.

A number of brokerages analysis report pointed out that, despite the "beautiful 50" overall

It is still low, but from the perspective of constituent stocks, its undervaluation is not comprehensive.

In particular, after a continuous rise in the previous period, a part of the SSE 50 constituent stocks valuation has been significantly higher than the market average.

With the strength of the relevant index unchanged, its valuation advantage will continue to decline as the share price goes up and even generate new bubbles.

It should be noted that the decisive role is not the issue of valuation, but the continuous pursuit of market funds.

Back to the main board market, today, the market again created a new high, its trend seems to be more passive, of which the weighting stock is the main push of the rising index.

This can be verified by the trend of technology.

On the one hand, there is a certain degree of amplification of trading volume. This is the amount of energy released by market capitalization chasing large cap stocks. On the other hand, the continuous divergence of technical indicators can reflect the rise of false fire in the rising process, which is also a passive problem facing the market.

It can be said that under the premise of capital recognition, there is still a strong opportunity for large cap stocks. If there is any opposition, the market crisis will emerge.

On the whole, how far can the blue chips go? This will depend on the recognition level of the assets.

Before that, the defects of the technical plane could only serve as an auxiliary tool for judgment.

It is still the saying that there is no market that only falls but does not rise, and there is no market that only rises or falls.

When the market runs to a limit, what is likely to happen is the reversal of the market.

At present, this sign is constantly accumulating, investors should always keep rational judgement.

In the current investment strategy, for a small increase, the relatively low valuation of blue chips can still be properly laid out, at the same time, there are appropriate disposition for defensive varieties of high quality, and the layout of offensive and defensive should be well balanced.

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