There is no shortage of surprises and frightens in the A-share market, and investors have just taken a breather from the dividends of the "New National Nine Articles", and investors have been taken aback by a sudden "black swan". No, tensions in the Middle East have escalated again, and global capital markets are feeling the cold wind.
At the end of last week, A-share investors were still immersed in the excitement brought by the "New Nine Measures" policy. These policies are seen as a boon to the capital markets, and many expect them to lead to a sustained rally in the stock market.
But the good times were short-lived, and the sudden Middle East crisis once again dropped a bombshell on the global capital market. On Friday evening, the U.S. stock market reacted quickly and severely, with all three major indexes falling, among which Chinese concept stocks fell by more than 4.90%, and the A50 futures index also fell by 0.46%.
There is nothing worrying about this market reaction, especially for investors who have already laid out the A-share market, the weekend seems to have become unusually long, and everyone is waiting for the opening of Monday to see how A-shares will perform.
On Monday, as expected, A-shares opened in the doldrums. Despite the efforts of the "disk guards" to stabilize their position, the adverse news from the outside has clearly affected the market sentiment. The 3,000-point mark has once again become the focus of market attention, and investors are on a rollercoaster ride and uneasy.
Domestically, although there is a series of good news such as the social finance data is basically in line with expectations, the continuous promotion of the easy credit policy, and the trade-in of consumer goods jointly promoted by 14 departments, the market anxiety has been difficult to calm down in the short term.
Especially under the further deterioration of the situation in the Middle East, although the top-level design of the capital market is dominated by supervision and high-quality development, which may be good in the medium and long term, the market sentiment is still unstable in the short term.
Technically, since April 10, the Shanghai Composite Index has lost short-term trend line support, and the overall market has entered a period of adjustment.
This wave correction is defined by market analysts as a B-wave correction, which is a normal retracement phase according to wave theory. Judging from the specific trading data, although the market fluctuated in a wide range of 100 points, the speed of adjustment was not fast, indicating that the panic in the market was still controlled within a relatively reasonable range.
Although the market as a whole shows a corrective attitude, there are some positive signals. For example, although the ChiNext index hit a new low in this round of correction, technical indicators began to show divergence during the 60-minute and 90-minute cycles, which often indicates that there may be some chance of a rebound in the market.
As the market declines further, many investors have begun to gradually increase their allocations to defensive stocks, such as pharmaceuticals and consumer stocks, which are generally more robust when the market is volatile.
There are also some investors who are starting to covet possible "dip-buying" opportunities, especially after certain technology and growth stocks showed large declines in the correction.
This divergence in market sentiment has also led to increased volatility in trading. Despite the overall downward trend of the broader market, the increase in trading volume and the movement of individual sectors have provided many opportunities for short-term trading. For short-term traders, this market environment is full of challenges as well as opportunities.
From a global perspective, other emerging markets have also been affected. For example, equities in India and Brazil have seen similar shocks, and investors' risk appetite for emerging markets appears to have changed in the short term.
This change is not just a reaction to a single market, but a feedback to the uncertainty of the global economic environment as a whole. Despite multiple headwinds, some of the market's fundamentals remain strong.
For example, some large state-owned enterprises and enterprises with monopoly positions in the industry have shown relative resistance in this round of adjustment. These businesses usually have stable profitability and a strong market position, making them a safe haven for investors in times of risk.
In this complex and volatile market environment, investors' strategies are constantly adjusting. Shift from short-term market performance to a greater focus on the fundamentals and long-term value of the business.
For those investors who still insist on looking for opportunities in the market, how to balance risk and return, and how to find a certain growth point in uncertainty have become their most concerned issues. After a period of intense market turmoil, investors are beginning to adapt to this new market rhythm.
Although the panic in the market has not completely dissipated, with the digestion of various information and the gradual implementation of policies, the market seems to be looking for a new equilibrium. All this is constantly testing the patience and wisdom of investors, and every fluctuation in the market is full of new lessons and enlightenment.