In particular, small and medium-sized sectors and individual stocks have become the hardest hit areas, showing a general decline, especially after the midday index dived, the decline was even greater, and the individual stocks did fall miserably, so that investors' losses further increased.
Anyone who carefully observes the market will find that the real reasons for such a miserable drop in individual stocks are none other than the following points.
Reason 1: Because of the selling pressure of small and medium-sized theme stocks, it has become the hardest hit area of today's A-shares; the theme stocks have become the hardest hit area mainly because of the collective decline in technology stocks, as well as the outflow of funds, etc., of course, it is not excluded that investors are worried about the decline of A-shares, and sell the theme stocks in their hands in advance for hedging, and multiple factors have dragged down today's theme stocks, which is the main reason for the miserable decline of individual stocks.
Reason 2: Because the A-share domestic and foreign capital jointly smashed the market, and at the same time, it is not excluded that there are short forces to come out to short and make profits; the net outflow of domestic capital exceeds 30 billion yuan, and foreign capital is also fleeing and selling more than 3 billion yuan. Of course, the fall of individual stocks is so miserable, it must also suffer from short smashing, securities lending is the largest short in A-shares, and it is also the culprit of the miserable decline of individual stocks.
Reason 3: Because the pessimism of A-shares continues to rise, due to the recent trend of "protecting the index and falling individual stocks" in A-shares, which has led to the decline of small and medium-sized theme stocks, and the losses of retail investors are getting bigger and bigger.
Reason 4: Because A-shares have entered a bearish trend today, the index, sectors and individual stocks have shown a downward trend, especially after the index diving, which has made the market worse. To put it bluntly, after the plunge falls, the market is weaker, and individual stocks will naturally fall miserably.
Will the decline accelerate tomorrow Tuesday?
With today's collective decline in A-shares, many investors must be worried, worried that A-shares will accelerate the decline, this possibility can not be ruled out, tomorrow A-shares will really accelerate the decline?
It is predicted that tomorrow A-shares will open low by inertia, and after opening low, they will get long protection, and will never allow the current A-shares to fall, and will enter the mode of staging "boiling frogs in warm water", and will not accelerate the decline of A-shares for the time being, because the main funds have not yet reached the purpose of shipping and attracting pick-ups.
It means that A-shares will not accelerate their decline tomorrow, but they will continue to maintain the market of "protecting the index and falling individual stocks" for two reasons.
Reason 1: Recently, A-shares have obviously had an invisible bullish power to protect the market, and cyclical resource stocks will do their best to protect the market, and will definitely not accelerate the decline of A-shares;
Reason 2: Although A-shares have the need to change the market and need to choose the direction, before the market has not chosen the direction, the bears do not dare to smash the market easily; unless the heavyweight stocks smash the market, the market panics, and the bears smash the trend, otherwise the short-term A-shares will not accelerate the decline.
Based on the above analysis, it turns out that today's A-shares opened low and fell, and the disk was green, and the internal reasons for the continued decline of individual stocks were the theme stocks leading the decline and becoming the hardest hit area, the joint flight of domestic and foreign capital, the rise of pessimism and the decline of A-shares, but although today's A-share general decline will not let tomorrow's A-shares drag down.
Operationally, no matter whether tomorrow's A-shares are accelerating the decline or boiling frogs in warm water, the overall market is very weak, and we must prevent and control risks, improve safety awareness, hold shares lightly, and see more and move less.