This week, the market staged a shocking reversal. Although the market fell in October, the Shanghai Composite Index closed below the 3,000-point mark for the first month this year, but the market immediately turned around and rose sharply. The weekly K-line closed with a big positive line , and the Shanghai Composite Index recovered the 3,000-point mark on Friday. This trend seems to be a replica of the end of April and early May. The market was once again safe and showed strong support from the original upward channel, indicating that the short-term below 3,000 points.
1 October closing fell below the 3,000 point mark for the first time this year
This Monday was the last trading day of October. I thought there would be a rebound, but I didn't expect the market to continue to fall all the way. Shanghai Composite Index closed below the 2,900 point mark and closed at 2,893.48 points. This is the first time this year that the monthly closing fell below the 3,000 point mark. Moreover, the double bottom pattern formed last month was also broken. In this way, the Shanghai Composite Index fell 4.33% in October, and the html January K-line 4 consecutively fell.
Shenzhen Component Index closed at 10397.04 points in October, which is also the lowest monthly closing this year, with a drop of 3.54% in October, and the monthly K-line was also 4 consecutive negative. GEM Index 1 closed at 2265.05 points in October, with a drop of 1.04% in October.
Shanghai Index Monthly K-line chart
Shenzhen Comparison Monthly K-line chart
Although October closed at a close close to the lowest level, falling below the two major marks of 3,000 points and 2,900 points, which is disappointing to increase the pessimism about the future market, but there are some differences in the market in October.
GEM Index Monthly K line chart
Big cap stocks are the culprit of decline
From the index, the Shanghai Composite Index, which is not common in the past. Although the monthly K-line of the three major indexes has been 4 consecutive negative, the Shenzhen Component Index and the ChiNext Index have the smallest decline in 4 months. stock , there were more than 2,800 stocks rising in October, and only 2,000 stocks falling. The number of stocks rising exceeds the number of stocks falling, which is inconsistent with the negative index of all the index .
Shanghai Index is mainly affected by large-cap stocks. The Shanghai Composite Index has fallen sharply, indicating that large-cap stocks have mostly fallen, and the number of rising stocks is mostly, indicating that small-cap stocks have been affected in October small-cap stocks . This phenomenon is more obvious in the large-cap stock index. The Shanghai and Shenzhen 300 index fell by 7.78% in October, far exceeding the decline of the Shanghai Composite Index, and it is also the month with the largest decline in the past four months. Shanghai Composite 50 Index fell by as much as 12.04% in October, marking the largest monthly decline since January 2016.
Shanghai and Shenzhen 300 Index monthly K-line chart
This phenomenon shows that the decline in the index in October was mainly due to the decline of large-cap stocks. Although the number is small, it has a great impact on the index. At the same time, large-cap stocks were originally price-to-earnings ratio . After such a sharp drop, the price-to-earnings ratio is even lower, and the possibility of continuing to decline is very small.
This week's weekly K-line closed the long-lost big positive line
Sure enough, the market changed its face immediately in November. This time, the change of face is a change of face that makes investors happy.
Although the Shanghai Composite Index closed at a closest lowest point on October 31, it closed with a cross star. On November 1, the Shanghai Composite Index launched a Jedi counterattack, rising 75 points, and the gained at 2.62%, regaining the 2900 point mark in one fell swoop and approaching the 3000 point city. On November 2, it continued to rise by 34 points and recovered the 3,000-point mark. On November 3, it fell slightly by 5 points and fell below 3,000 points. html rose again to 73 points on November 4 and closed at 3070.8 points. The 3000-point mark lost and recovered. The Shanghai Composite Index weekly K-line closed with a big positive line, up 5.31% this week, setting the largest weekly increase of this year .
Shenzhen Component Index closed at 11187.43 points on Friday, up 7.55% this week; the ChiNext Index closed at 2451.22 points on Friday, up 8.92% this week.
This week, the Shanghai Composite Index fell to 2800 points and encountered strong support. It rebounded strongly. It fell to the 3000 point mark for 8 days and was recovered. The trend was very close to the trend at the end of April and early May. At that time, it also fell rapidly to 2800 points and then quickly rebounded above 3000 points. The author said before that the Shanghai Composite Index is supported by strong support from the 20-year moving average and has limited room for decline, which has been verified again this time. It is also what the author said before that the box of 3000 points to 3300 points is the main operating space of the market, and the time it falls out of this area is a short time for .
After these two weeks of test, it shows the strong support of the original channel. We don’t need to worry too much about the market. In addition, the third-quarter report of listed companies was released by the end of October. According to statistics from Tonghuashun iFinD, the total net profit of 4,852 companies in the first three quarters of this year was 4381.6 billion yuan, and increased by 3% year-on-year. Although the overall performance growth is relatively low, it is not easy to maintain growth under the influence of various complex factors this year. Therefore, the fundamentals of are good, so the stock market outlook is also optimistic.
Golden Coast Studio
Author | Lian Jianming
Editor | Lu Jiahui
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