This is the fourth time that I have mentioned pork. The reason why I mentioned it again is because after a few days of adjustment, the market has diverged again. I guess everyone is also a little confused. Can I still get the pork stocks at this time? Let me tell you the answer first: the pork is still at the bottom.
Since November 17 this year, I have mentioned pork three times in a row. This is the direction in which I have continued to follow the most articles in one sector in the past six months. From everyone's comments, we can see that many friends also agree with the analysis of the previous three articles. Some people have done three bands and really got the meat.
The pork sector has not brought you monster stocks surprises like Xi'an Food and Xi'an Tourism, nor has it been frightening by Zhongsheng Pharmaceutical such as pharmaceutical stocks falling from high prices. It can only be regarded as quite satisfactory, slightly outperforming the market. Let's take Wen's shares as an example. During this period, the overall stock price rose by about 312%. If you sell high and buy low in the middle, the income will be higher. The most important thing is to make some solid money. Monster stocks are rampant. Many people look down on stocks that have a small rise in two days and a correction in three days, but they can actually make the account funds thicker. Pork is real meat.
Stock trading is very exciting in itself, but the purpose of coming to this market is not to pursue excitement. The ultimate goal is to quantitatively avoid risks and try to make profits.
Pork prices have not been friendly since December, live pig futures have plummeted, and Wen's shares have also begun a shrinkage callback. Let’s talk about the fall in pork prices first. Why have pork prices dropped sharply? Will this price reduction continue?
Let’s take the Beijing market as an example. Although the trend of pig futures is scary, pork consumption has continued to recover since December 1. It only experienced a brief decline on the 13th to 15th when the epidemic was the worst. Moreover, the recovery rate of pork consumption is greater than the recovery rate of personnel movement.
This is the change in Beijing subway passenger traffic in the second half of this year. The cliff-like decline began in late November. Having a fever at home will naturally reduce the consumption of pork. This can be Referring to the trough of passenger traffic in May, the trading volume of white-striped pigs in Beijing dropped by about 50%. From November 24 to December 1, the average daily trading volume of half-striped pigs in Beijing dropped from 540,000 kilograms to 250,000 kilograms, a drop of more than 50%. However, since December 1, the volume of white-striped pigs on the market has increased significantly, and now it has returned to 650,000 kilograms. On December 26, the volume of white-striped pigs on the market was 20% higher than the highest point in November, and an increase of 160% from December 1.
Chart source Zhongtai Securities Research Report
The data will not lie. The daily average listing volume of Baitiaozhu has started from December 1st, and has gone out of the beautiful main wave , which is much higher than the recovery of the subway flow of people. As the peak of the first wave of the epidemic has passed, the listing volume of Baitiaozhu will continue to grow and will remain operating at a high level.
Everyone saw the price of pig futures plummeting and felt panicked. However, in fact, the retail price of pork when buying pork in supermarkets did not change significantly. This was mainly due to the drop in wholesale prices caused by the sudden drop in short-term demand. The peak season for pork consumption is after New Year's Day, and pork consumption will only increase after January.
As for Wen's shares, there is no need to say too much. The first three articles have already said everything that needs to be said. You can take the time to read back. Below is the link to the article. Since November 17, three consecutive analyzes have made it very clear. Many people have already done two or three swings. I hope everyone can keep up with the rhythm of the market and only make money within their own knowledge.
November 29 - The bottoming signal of Wen's shares is revealed through block trading
December 4th - The sudden repurchase is good, is the spring of Wen's shares coming?
