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The US stock market experienced an epic plunge last night, and the circuit breaker mechanism was triggered shortly after the opening, and trading was suspended for 15 minutes. During the session, the Federal Reserve adopted emergency rescue measures and announced that it would provide a total repurchase operation of $10,000, while also expanding the types of securities it purchases. Even so, it still cannot resist the selling force of the bears. The Dow Jones Industrial Average closed down 9.99%, the largest single-day drop since Black Monday in 1987; the Nasdaq and S&P 500 were not much better, with losses reaching 9.43% and 9.51% respectively.
Review of the history of US stocks, there were three circuit breakers triggered, and this week it triggered twice; in addition to the United States, Thailand, the Philippines, Pakistan, South Korea and Indonesia also triggered circuit breakers in the global stock market yesterday. In addition to the previous two days, Brazil, Canada and Kuwait, the stock markets of more than a dozen countries have been circuit-breaked by the new crown epidemic this week. Some institutions simply estimate that the market value of important global indexes evaporated on Thursday was as high as US$5.17 trillion, exceeding Japan's GDP in 2019 (US$5.07 trillion).
Compared with
, A-shares have been quite "strong" in the past two days. It opened sharply lower in the morning of today and then rose rapidly. The ChiNext turned red during the session. At the close, all three major indexes regained most of the decline. In terms of individual stocks, only 800 companies rose in the two markets, and more than 2,800 companies fell, of which more than 80 hit the daily limit, and nearly 30 hit the daily limit. The total turnover of Shanghai and Shenzhen was 966.7 billion yuan, and the main market was net outflow of 20.6 billion yuan; in terms of foreign capital, affected by panic, northbound funds increased their efforts to flee, with a net outflow of more than 13 billion yuan in a single day. In terms of industry sectors, land transfer, agricultural planting, electrical transmission and distribution, ultra-high voltage, photoresist, chip semiconductors, etc. rose against the trend, and popular masks and epidemic-related medical concepts have become the leading role in the market.
Look at the above data in detail. The rise and fall ratio of individual stocks in the two markets is less than 1/3, and the number of rise and fall limit ratio is around 3:1. This shows that during the plunge, not only did A-shares not be completely disabled, but there were still active funds in the market looking for meat to eat everywhere. Of course, the market speculation method is indeed very A-shares. In addition to ultra-high voltage, smart grids and charging piles, new infrastructure with medium-term speculation logic, land transfer, horse racing, agricultural planting and other concepts can be found in the news. In the concept of leading the decline, investors began to cash in a new wave of profits after continuous surges. This phenomenon, shows that A-shares are not completely affected by the sharp drop in the peripheral market, and to a certain extent, they are also looking for a path suitable for them to break through.
(How to explore the "Moutai" in each industry? Niu Sanprincipal Toutang focuses on tracking long-term bull stocks)
We have talked too many times during this period. The market is using sweeping to end this wave of market. At the end of the market, it is also making up for the rise. However, due to the outbreak of the overseas epidemic, the efforts to sweep A-shares have increased, which has changed the short-term operation trajectory of the market. However, the trend has not been greatly affected. The biggest difference between the past and after may be that after a short-term continuous sell-off, once the global stock market recovers, A-shares will also usher in a strong counterattack. So, for friends who have adjusted their positions some time ago, the recent sell-off is another opportunity to buy at a low price.
As for the future market speculation logic, new and old infrastructure have already clarified the band-level positioning, and there are also obvious differences between new and old infrastructure. New infrastructure policies are stronger, and many individual stocks belong to the technology field, with a relatively large trend elasticity and more short-term opportunities; investment in old infrastructure is also indispensable. In addition to cement, most individual stocks are in low-valuation areas. There is no need to worry about a sharp drop and a washout, but don’t expect that they can be as limited in return as new infrastructure targets.
Due to the continuous sharp drop in the outside world in recent days, the internal market has also grown strong panic, so everyone is looking forward to the introduction of new stimulus policies from the regulators.After the market today, the central bank issued a targeted reserve requirement cut, saying that it will implement targeted reserve requirement cuts for inclusive finance on March 16, and targeted reserve requirement cuts for banks that meet the assessment standards by 0.5 to 1 percentage point. In addition, the joint-stock commercial banks that meet the conditions will reduce the reserve requirement ratio by one percentage point to support the issuance of loans in the field of inclusive finance. This targeted reserve requirement cut released a total of about 550 billion yuan of long-term funds. After the heavy positive news of the reserve requirement ratio cut, it is expected that some favorable policies will be put on the weekend. Comparing the declines of A-shares and peripheral markets in the past two days, it can be seen that A-shares have shown unique resistance to declines. In addition, the central bank's targeted reserve requirement cuts are expected to resolve the impact of the peak of the overseas epidemic. However, it is unlikely that it will take A-shares back to the counterattack upward trend by relying on a reduction in the reserve requirement ratio.
In addition, many countries have begun to ban shorting stock markets today, and European stock markets collectively counterattack in the afternoon. If the US stock market can also stop the decline tonight under the measures to protect the market, then the Asia-Pacific market will also usher in a strong rebound next week.
summary, seeks progress after a big drop, and thinks of retreat after a sharp rise! The counterattack has come down and wait patiently.
Investment is risky, so be cautious when entering the market! The sectors and individual stocks in the article are technical analysis and are for reference only and do not constitute trading advice!
text/Hidden Horse Niu San [WeChat official account: Dark Horse Niu San stocks, hmns918]
