Tuesday morning, the A-share market closed! The A-shares saw a half-day volume contraction with a 3310-point decline of 10 points. There are 4 key signals on the market, and the A-shares are weakly oscillating and selling off as expected. What's next? Please watch carefully and patiently, and I will explain in three minutes.
First: The A-shares traded 330 billion in the first half of the day, opened low, and oscillated down by 10 points. More than 4,000 individual stocks fell in the two markets, with 1,100 rising, including 40 that hit the daily limit up, and three that hit the daily limit down. The main force funds net sold 12.4 billion, and today's A-shares opened low as expected and maintained a weak oscillation.
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Second: Today's A-share market has 4 key signals that deserve your special attention. What are they? They are as follows:
The first key signal, it's almost unnecessary to say, is that the mysterious funds, the "national team," once again stepped in to support the market by lifting banks, oil, telecommunications operations, and coal. The four major banks have set new historical highs. Over the past year, the national team has basically lifted stocks with a market value of about 100 billion yuan.
Previously, I repeatedly told all investors that those who do not know how to trade stocks can follow the direction of the "national team," and indeed, these stocks continue to rise. But today, I would like to remind you slightly that the four major banks have set new historical highs, so don't chase them today. Tomorrow, these four banks may experience a fluctuating adjustment, and other commercial banks may have a catch-up rally.
The second key signal is the white liquor stocks that have been weakening recently. As expected, they set a new low for the adjustment in the past four months today. However, the white liquor sector closed with a long lower shadow line today. White liquor is a significant weight sector in the A-share market. If the white liquor sector can stop falling, it may help stabilize the A-shares.
The third key signal is that Longi Green Energy suddenly announced a price increase for silicon wafers today. Longi Green Energy is one of the leading companies in the photovoltaic sector, which has been continuously oscillating and falling for more than three years. Recently, it has formed a double bottom, and today's announcement of a price increase led to a surge of more than 4%. Photovoltaics and electrical equipment are the second largest market value sectors in the A-share market. If they can stop falling and stabilize, they can help stabilize the A-shares.
The fourth key signal is that today's A-share market is inevitably weakly oscillating because the four major banks have once again lifted to new historical highs, creating a seesaw effect on other sectors. Due to the A-share turnover being less than 600 billion, the rise of bank stocks has a blood-sucking effect on the market. Therefore, many popular sectors have adjusted across the board today.
Third: So, the question arises, as the A-shares are weakly oscillating as expected, what's next?Firstly, this morning in the A-share market, the CSI 1000 index fell nearly 1%, the Shenzhen Component Index dropped by 0.85%, the STAR 50 index declined by 0.8%, the ChiNext Index fell by 0.62%, the CSI 300 index dipped by 0.61%, the Shanghai Composite Index fell by 0.36%, and the SSE 50 index dropped by 0.22%, with all major indices closing in the red.
Secondly, the STAR 50 index today indeed reached its lowest point at 672, which is exactly at the support level of the golden ratio 0.191, hence it will close with a lower shadow line today. The Shenzhen Component Index also indeed probed lower today, reaching its lowest point at 8101.77, which is still a bit away from the golden ratio 0.191 support level of 8088, indicating there is still some room for a slight pullback. Therefore, it continues to maintain a weak consolidation, staying within the range of 8088-8046.
Lastly, due to some heavyweight stocks supporting the market, the Shanghai Composite Index will still be consolidating weakly around 2839 in the short term. However, other indices may still experience a minor pullback, which is a view I have repeatedly mentioned last week. It is a foregone conclusion that August will close with a negative candle, and the rebound can only be expected in September; for now, we can only be patient and wait for the market to bottom out.