Stock market investors' happiness came too suddenly, as they finally witnessed the long-awaited significant volume increase and a substantial surge in the A-share market, allowing investors to recoup substantial losses! It's truly a big bullish candlestick, with thousands of troops coming to meet, is the A-share bull market here?
As of today's market close, the Shanghai Composite Index rose by 0.68%; the Shenzhen Component Index rose by 2.38%; the ChiNext Index rose by 2.53%; all sectors and individual stocks rose across the board, except for bank stocks, with as many as 4,679 stocks going up and only 565 stocks going down; the turnover of the Shanghai and Shenzhen markets noticeably increased, with a volume increase of 269.4 billion yuan compared to yesterday, with a total turnover of 876.6 billion yuan for both markets, significantly enhancing the profit effect of the entire market, which deserves a hundred likes for today's A-share market rise.
Following today's major breakout in the A-share market, after a full-line rise, many questions naturally arise, which will relate to the closing of the A-share market and the pockets of stock market investors. There are three specific points:
(1) Will it be a one-day event?
On July 31, the A-share market also saw a sudden significant volume increase and a substantial surge, but it turned out to be a one-day event, followed by a continuous decline, setting new lows, making those who chased the rise the ones to take the fall.
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There is a concern that the history of the A-share market will repeat the one-day event from last month. This concern is inevitable, and for safety reasons, investors should not blindly chase highs but rather hold their positions and wait and see.
(2) Is it a short-term rebound or a reversal?
The most immediate rise is a one-day event, which is a short-term rebound; starting a new round of rise and continuing to surge, with each wave higher than the last, this is a reversal.
So for today's collective rise in the market, it is crucial to distinguish between a rebound and a reversal. A rebound is a short-term rise, while a reversal is a sustained rise. This will affect the future trend and quality of the A-share market, and everyone should ponder this question deeply.
(3) Is the A-share bull market here?A single big bullish candlestick to determine whether the bull market has arrived in A-shares is indeed a bit hasty!
To truly discern whether today's surge indicates the arrival of a bull market, one should observe the trend of A-shares next week, including the sustained rise of heavyweight stocks, the continuous expansion of trading volume, the ongoing improvement of profit-making effects, and the persistence of bullish momentum, among others. Only then can we confirm whether the bull market has indeed arrived for A-shares.
Will A-shares continue to soar next week?
A single big bullish candlestick turns the world upside down! Thousands of troops come to meet! Today's collective massive outbreak has boosted market and investor confidence, and incremental funds have also arrived, making it indeed likely for A-shares to continue rising next week.
The implication is that while it is difficult for A-shares to continue soaring next week, a continued rise is inevitable; the reason being that A-shares lack the conditions for a sustained surge, and there is also a lack of momentum for a continued significant rise.
1. Today's massive surge in A-shares was entirely ignited by the national team's intervention, which acts only at critical moments. Once the national team steps back next week, it will be challenging for A-shares to sustain a significant rise.
2. Following today's across-the-board rise in A-shares, next Monday's sectors and individual stocks are bound to diverge. Those with volume will continue to rise, while those without will return to weakness, intensifying the tug-of-war between bulls and bears.
3. Bank stocks have fallen, with consecutive declines, raising concerns that they will continue to drag down the market next week; similar to today, bank stocks became the strongest bears. If not for the drag from bank stocks, A-shares would have risen with more vigor.
In conclusion, although A-shares rose across the board today, one should not rejoice over this increase. It is essential to achieve the state of "not rejoicing in gains, not sorrowing in losses"! View today's rise in A-shares calmly and composedly, whether it is a one-day trip, a rebound, or a reversal, and whether the bull market has truly arrived, all these issues still require verification.Before the A-share market has confirmed a bottom and a reversal, and before a bull market is certain, do not be too optimistic! Avoid the situation where old wounds are not yet healed, and new ones are added.