A-shares: Sudden dive! 3 pieces of news came, today's trend is not simple!
1. Rumors trigger an emotional breakdown? Is this really the case? Why is there such a big reaction? The market was in a rush on Wednesday morning**, and then small articles began to surface. Rumors that quantitative strategies are starting to recover, means that quantitative short selling may be revived, and there is a certain amount of panic in the market;
Whether this article is true or not, why was there such a big reaction on Wednesday***? Do some agencies know something in advance? So you were the first to start selling? In fact, everyone has an answer psychologically, because the market is real, and the market volume is also real, and it cannot be fake;
The trading volume of the two markets reached 888.8 billion yuan in early trading on Wednesday, which was comparable to the previous day's trading volume. On Wednesday, the trading volume of the two markets exceeded 13 trillion. Is such a large amount the result of ** smashing? There are some facts that are well known to everyone. Quantitative short selling is leveraged. If the quantitative strategy starts to smash again, the market may really not be able to bear it;
Quantifying the anecdotal is only one aspect. Wednesday is still the delivery day, and on Wednesday morning, there is obviously the prefix "pulling in" and the brokerage to cover the decline. These are signs that there are funds available to ship the goods. The outflow of domestic funds throughout the day was 85.3 billion, almost 100 billion. This outflow of funds also shows that the main domestic short-sellers have begun to act again;
At this time, the market sentiment is actually not stable. ** Just reached 3000 points, and investors are just seeing hope for recovery. At this time, the market is the most direct blow to confidence, and it is also the most likely to cause panic. Shouldn't short sellers pay a heavy price at this time?
2. Small-cap stocks collectively fell on Wednesday. It's not that simple: small-cap stocks have had big ups and downs before and after the year. Years ago, due to quantitative investment, small-cap stocks collectively **. Years later, small-cap stocks continued**. More than 300 small-cap stocks fell more than 9 points on Wednesday;
Most of the ** in the two markets came from small-cap stocks. Why Small Cap**? To untie the bell, the bell must be tied. To know why, you must first understand what has the biggest impact on microcap stocks? Of course, it's still a quantitative strategy. Last year, a large number of quantitative institutions allocated to small-cap stocks. However, as the market continues, many quantitative institutions have been liquidated, resulting in large losses. Micro stocks have also been hit hard;
With quantitative short-selling strategies paused and market sentiment improved, small-cap stocks finally ushered in a recovery. On Wednesday, however, they were again sharply **. Again, the reason is quantitative, because there is another message on Wednesday:
There is a lot of news circulating in the market about the regulation of DMA. Only self-operated funds are allowed to operate, and the raised funds are gradually withdrawn (the contract cannot be renewed after expiration). Leverage cannot exceed 1:1.
What are the consequences of this? Funding flight will lead to a liquidity shock to small-cap stocks, while the sell-off in small-cap stocks and quantitative** DMA redemptions have exacerbated the crash of small-cap stocks;
In short, it's all about quantification. Nowadays, when it comes to quantification, everyone is scared and worried. Since quants can easily cause market volatility, you need to think carefully about whether quants are still necessary (if you want the market to improve in the long run), don't you think?
3. What do you think of the volume today? Will it appear after a large **? Wednesday's trading volume broke a record, and the number of Wednesday's daily limit was also the highest this year. So will there be a rapid ** and recovery after a large **?
Today's market performance is actually the best response to market rumors. On Wednesday, various small articles circulated. Some deliberately short-selling ** may become active. So if you want to fight this short-selling force, the best response is to prove yourself with real gains;
So today there is an urgent need for a significant **. On Wednesday, the major stock indexes collectively **. fell nearly two points, the gem fell more than two points, and the domestic capital outflow exceeded 80 billion, which seemed a little pessimistic; However, on Wednesday, the Chinese word still tried its best to maintain market stability, and northbound funds mainly flowed in against the trend throughout the day on Wednesday;
Although ** is due to the shipment of funds, the enlarged trading volume shows that the trading is positive. There are funds to ship on Wednesday, and there are also funds **, so the hope of ** today is still relatively large;
It's just that through this violent market fluctuation, everyone must learn to observe and control. Once an abnormal change in market volume is observed, it is important to pay attention to control**. Once you find that the sentiment of the plate is rising, be careful not to chase higher; Even in a bull market, huge losses can occur, so don't trade frequently to chase the ups and downs, and don't get carried away because of emotions;
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