9.7 Comments | Beware of today's rising market

time:2022-12-09 17:18:01source:chakarski.com author:Market analysis
9.7 Comments | Beware of today's rising market

The overall performance of the market today is still relatively good. The Shanghai Stock Exchange continued yesterday's rebound, and the ChiNext board also made great strides after bottoming out yesterday, hitting near the 10th antenna. Although the index has performed well and has stepped out of the trend of stabilization and recovery, because the market is still in a zigzag adjustment wave, the index is still below the 610-day line. Although there are rising stocks in the market, falling stocks still account for the majority . Under the current trend, everyone still has to watch more and move less, and watch it become the main thing! Since this time, northbound funds have always been in a state of outflow, and today has been a net outflow for five consecutive trading days. Foreign capital is a very important incremental capital. In recent years, with the continuous inflow of foreign capital into the Chinese stock market, the market has only experienced structural strengthening. At present, with the accelerated pace of US dollar interest rate hikes, the RMB has begun to depreciate at an accelerated rate, leading to signs of foreign capital returning, which is an important factor in the recent weakening of A-shares. Today, the RMB exchange rate continues to depreciate rapidly, and at the same time, northbound funds also maintain a state of net outflow. In this environment, we still need to remain vigilant about the current rebound. For the current market, we should not pay too much attention to short-term hot spots. In this state, it is difficult for the market to have persistent hot spots, and it is more of a pulse market. For example, the concept of propylene oxide that we emphasized to you this morning. Yesterday, the concept of propylene oxide led the rise, but through research on the fundamentals, it was found that the price increase of products in this industry was not a boom in supply and sales, but was actually a result of weak demand, due to low operating rates and tight market supply. The price increase also reflects the actual situation of the current real economy. Judging from today's market performance, this sector has indeed failed to continue yesterday's rising rhythm. According to our experience, in a bear market, we must not pursue short-term hot spots. Because once the quilt is over, it is often difficult to unravel even if the bull market comes, so everyone must stop this kind of market and continue to patiently wait for the trend to appear.
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