The Stock Market Is Likely To Have A Big Shock.

For this week's stock market, the more consistent view was that the first half of the week needed to be adjusted, and that it would go up in the second half of the week. This is mainly based on the pressure of adjustment in the pre market market, which needs to be digested.

Against this background, the pattern of first restraining and then rising is indeed quite large.

However, the actual situation is not exactly the case. The market just adjusted slightly on Monday, then began to rise, and gradually expanded, the stock index quickly broke through 4500 points and 4600 points, creating a new high since the current rebound.

Here, stocks rose all the way, and the paction increased gradually, forming a trend of increasing price.

This situation is relatively rare in the near future, and this is also the reason why the market controversy has been quite prominent around this round.

In fact, the market showed the adjustment requirements in the early May, because the index rose considerably in April, and the market needed a consolidation process.

However, because the central bank announced the interest rate cut, it disrupted the pace of adjustment objectively, and the stock index went up once, but soon encountered resistance again.

Generally speaking, this sort of arrangement will last until this week.

However, this week, the country has introduced steady growth measures. At the same time, new measures have been announced to promote the development of new industries, which drives the funds that have remained outside the market waiting for more adjustment to enter the market.

These funds are obviously divided into two key points in the choice of investment direction, one is growth stocks, especially in the "Internet +" concept stock.

This is reflected in the recent rise in "small and medium sized enterprises".

The other is the stagflation stocks, especially those in the financial sector.

As we all know, there has been basically no rise this year, and there is a huge demand for additional inflation, which has great attraction for the newly entered capital.

It is worth mentioning that, because most of these stagflation stocks are weighted varieties, once they are pushed up under the impetus of large funds, the impact on the stock index will be enormous.

In the second half of this week, the strong rise in stock index came mainly from these heavyweights.

Also because of the emergence of

The sharp rise in market disputes also followed.

If the market discussion is more focused on whether the bubble of the growth enterprise board is too big and whether the market can bear the acceleration of the expansion of new shares, then what we are concerned about at this time is that once the heavily weighted stocks become active again,

Is it over?

Historically, this has happened several times.

The most typical is the autumn of 2007, with a large number of "Chinese prefix" heavyweight rose sharply, more than two years of the market also entered the latter stage, and in November, after the listing of China Petroleum, and then was severely fried, so the stock market also fell.

In fact, there should be a comprehensive analysis of this issue, which is different from the situation in 2007. At that time, the price earnings ratio of those "Chinese prefix" stocks was much higher than that of the present, and their performance was also at a historical high point, facing the potential risk of decline.

The problem now is that the valuation of related stocks is still significantly lower, and some are even lower than the mature markets abroad.

A considerable portion of the future performance will rebound accordingly.

All of these have determined that the current market is far from over. Therefore, judging from the past experience of the current market, it is lack of basis and obviously does not conform to the characteristics of the current market.

Of course, the stock market has not yet reached the end of the day, not the strong market will push forward all the way, in a single day trading volume of nearly 2 trillion yuan, the market in the short term is difficult to re volume, so the next market is likely to have a larger shock, and if the heavyweight continues to rise vigorously, this kind of shock may also be very intense.

Of course, generally speaking, the possibility that the heavyweight shares will rise unilaterally is not big. On the contrary, growth stocks will still be the focus of the next stage of the market.