Affected by the negative news of the Qingming holiday, the three major indexes of A-shares collectively opened low today, and the trend fell to gain support, and soon the bulls came out to protect the disk, suppressing the decline of the disk.
However, the bulls also encounter a very tricky market when they come out to protect the market, which will lead to the distortion of A-shares, stage a market of "protecting the index and falling individual stocks", and continue the market characteristics of A-shares before the holiday, why is this?
Factor 1: The biggest factor behind the frequent A-share market of protecting the index and falling individual stocks is the intensification of plate differentiation.
Factor 2: The environmental impact of A-shares themselves, you must know that A-shares have been sideways for a month, and they are already in the window of change, and they will maintain a high level before the change;
It means that the factors that frequently protect the index and fall individual stocks are due to the interference of cyclical stocks, the diversion of funds and the stock market environment, and the actual reasons are as follows.
Reason 1: cyclical stocks are interfering with the stock market, recently funds and sentiment have been attracted by cyclical stocks, but also become the strongest longs in A-shares, whenever the index is going to fall, cyclical stocks will rise in volume, so cyclical stocks are the real power to protect the index, on the contrary, lose the interference of cyclical stocks, will definitely break the recent index protection, down individual stocks market.
Reason 2: Technology stocks continue to fall, technology stocks are really weak recently, obviously suffering from capital selling pressure; when technology stocks collectively fall, it will inevitably drag down small and medium-sized theme stocks, once the theme stocks fall up, but the stocks are green, it is inevitable that there will be a general decline in the market, so the main reason for the decline of individual stocks is the drag of technology stocks.
Reason 3: The differentiation of large and small plates is intensifying, the long and short game is also intensifying, and the heavyweight stocks are fully protected to maintain the stability of the disk, and the A-shares are not allowed to fall and adjust;
To sum up, in the face of today's A-share market of "protecting the index and falling stocks", it is indeed very speechless to encounter such a market, even if the index rises in the sky and the stocks are still at a new low, the obvious warm boiled frog cutting leek mode, such a market will not be optimistic, it is recommended that investors must look at the current market of A shares rationally and beware of the coming of adjustment risks.