Large-scale single-needle bottoming
The Shanghai Composite Index rebounded quickly after it reached the 20-day moving average in early trading on Tuesday, but it failed to turn red and fell below the 2,600-point mark. The Shenzhen Composite Index rebounded after breaking through the 20-day moving average in early trading. At the close, the Shanghai Composite Index closed at 2,594.25 points, down 0.11%; the Shenzhen Component Index closed at 7551.3 points, down 0.5%; the GEM pointed to 1243.59 points, down 1.28%. The volume of transactions in the two cities continued to shrink slightly.
In terms of individual stocks, although the market has not fallen much, stocks are now falling. The daily limit of stocks was further reduced to 20, the daily limit of stocks increased to 41, and nearly 400 stocks fell more than 5%.
On the news front, the China Insurance Regulatory Commission sent news to encourage insurance companies to use long-term account funds, increase the stocks and bonds of high-quality listed companies, broaden the investment scope of special products, and increase the efforts of special products. According to the data of the China Insurance Regulatory Commission, as of the end of November 2018, the balance of insurance funds used reached 16 trillion, of which stocks and securities investment funds were nearly 2 trillion yuan. This move is conducive to the guidance of long-term funds of A shares, safeguarding the healthy development of the capital market, and better playing the role of investors in insurance institutions. Affected by the news, insurance stocks closed across the board.
Although there was a bottoming out on Tuesday, the driving force for the rebound came from the two major groups of banks and insurance. Xiangcai Securities pointed out that this still belongs to the rhythm of the support, the market's profit-making effect is not enough, the risk of the theme stocks is still large, investors should continue to maintain defensive strategies.
After a large fluctuation, how will the short-term market be interpreted? In this regard, Yuanda Investment said that the market bottomed out on Tuesday. From a technical point of view, the Shanghai Composite Index has a single needle bottoming, and the long shadow line shows that the current position of the index has a larger supporting effect, and the probability of stabilization is expected to be large. The market outlook can still be expected.
But what needs to be said is that investors still need to be extra cautious in the context of the frequent occurrence of the annual “mines”. Huaxun (Hong Kong stocks 00833) investment pointed out that there are still three trading days after the closing of the Spring Festival holiday, and investors' participation is getting weaker. At present, the risk of individual stocks triggered by the annual report is still appearing continuously. According to the regulations of the Exchange, January 31 is the final deadline for the pre-announcement of major changes in performance. Based on past experience, it is not excluded that the company has a “bulb” announcement. So investors can’t relax their vigilance and still recommend staying away from the industry.Individuals with risks and financial status are more concerned about stocks with growth determination, stock price oversold and undervalued, and the industry is in line with national strategic orientation. Time should wait patiently for the emergence of trend opportunity signals.