Emotional collapse and shrinking principal, cheap chips should not be easily given up

Mondo Psychological Updated on 2024-02-06

Yesterday, the three major stock indexes once again showed a 100-point amplitude, and finally rose and fell, and the decline of small and medium-cap stock indexes intensified. The turnover of the two markets on the disk was 877.3 billion yuan, which was 9% larger than the previous trading day. The banking, insurance and coal industry indices led the decline, while the public transportation, commerce and trade sectors and the Internet sector led the decline, with the median increase of the two cities** at -801%。The scope of the decline in small and medium-sized market capitalizations has expanded**, and there has been a tide of falling limits, and the historical scene of thousands of shares falling limits has truly reflected the current situation of extreme lack of market confidence. Northbound funds were net **12 throughout the day1.1 billion yuan, of which 16 million were net in Shanghai-Hong Kong Stock Connect1.4 billion yuan, and the Shenzhen Stock Connect net sold 40.3 billion yuan.

From a technical point of view, the decline of the main board indices has slowed down but the amplitude has expanded, and the small and mid-cap stock indices have continued to fall, and the structured volume energy level can only keep some stock indices firm. The Shanghai Stock Exchange 50 and CSI 300 indexes, which are leading the rhythm, have made it clear that they are the main cost areas at the moment, while the dual-innovation index, which has the weakest trend in this round, closed up after a series of declines, entering the transition from stopping the fall to stabilizing the current stage. The average stock price index, which represents the money-making effect of the market, has been the worst recently, just after the biggest weekly drop since 15 years, and fell another 8% on Monday. The current trend and the ** system open a large gap deviation of more than 20%, the normal ** except for the acceleration of the board in the case of the unilateral ** at the top and bottom stage will generally not exceed 15% of the deviation value, the current state feedback the market in the extreme ** after the collapse of sentiment, the same corresponding indicator oversold repair demand only increases.

On the whole, the extreme interpretation began with the weakening of the market due to the lack of confidence, and gradually developed into a panic selling of chips to clear the passive**, and even the process of the national team to stabilize the stock index has also formed a weight on the small and medium-sized market capitalization of the capital siphon effect, and the result of a vicious circle of small-cap stock liquidity problems. The national team for the SSE 50 and CSI 300 ETF began to shoot on January 18, and the ETF ** of the CSI 500 and CSI 1000 peaked on Monday and rebounded more than eight times, of which the figure of the big money is not difficult to guess. The over-the-counter management continued to increase the policy of stabilizing the market, and at the same time extended the call time for investors in the two financial institutions and dynamically lowered the liquidation line to reduce the risk of forced liquidation and market pressure. At present, the market is in the extreme, the process of releasing risks has also brought a rare ultra-high cost performance, emotional collapse of the principal shrinking hands of the cheap chips should not be easily given up at the moment, suppressed for a long time ** and market sentiment have a strong repair demand to be cashed, pessimistic and desperate ** after the market will eventually usher in the dawn of recovery.

Disclaimer: The strategies and cases mentioned in the article are all excavated after my review and thinking about the market, without any subjective tendency, written only as a sharing of ideas, throwing bricks and jade technical exchanges, not as a suggestion for any person to operate.

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