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Good morning, readers and friends, last night there was a series of good news, after yesterday's A-share crash, will it be red four or black four today? Let's go straight to today's morning review.
Overnight performance:
The three major U.S. stock indexes all hit record highs on Wednesday, and the Dow Jones Industrial Average rose 349.89 points from the previous trading day to close at 39,908.00 points, an increase of 0.88%; The Nasdaq Composite Index rose 231.21 points, or 1.40%, to close at 16,742.39; The S&P 500 stock index rose 61.47 points, or 1.17%, to close at 5,308.15. CPI data boosted expectations of interest rate cuts, with data released showing that US CPI rose 3.4% year-on-year in April, with core indicators rising 3.6%, decelerating for the first time in six months. At the same time, April retail sales were reported to be close to the same level as March, well below the market's previous forecast of a 0.4% increase.
Large technology stocks generally rose, semiconductors and computer hardware sectors continued to rise, supermicro computers rose more than 15%, Dell Technologies rose more than 11%, AMD, Broadcom rose more than 4%, Nvidia rose more than 3%, Meta rose more than 2%, Apple, Microsoft, Google rose more than 1%. The precious metals sector was among the top gainers, with U.S. gold up more than 4%, Hekla Mining up more than 3%, and Pan American silver up more than 2%. Department stores, food and beverage, and oil and gas sectors were lower, with Kohl down 4%, Beyond Meat down more than 4%, and Macy's down more than 2%. Although the decline narrowed significantly at the close, the game station still fell more than 18%, AMC Cinema closed down 20%, Koss fell more than 19%, BlackBerry fell nearly 7%, and SunPower closed close to the daily low, closing down 29%.
Popular Chinese concept stocks were mixed, with the Nasdaq China Golden Dragon Index rising 0.03%. iQiyi rose more than 6%, Tencent Music rose more than 4%, Pinduoduo, Alibaba, Vipshop, Futu Holdings, Baidu, Bilibili rose more than 1%, and JD.com, NetEase, and Full Bang rose slightly. Weilai fell nearly 8%, Xpeng Motors fell more than 3%, and Li Auto and Weibo fell more than 1%.
Interpretation of important news affecting A-shares:
1. The China Securities Regulatory Commission promulgated the Administrative Regulations on Programmatic Trading in the Securities Market (for Trial Implementation)
In order to implement the provisions of the Securities Law on the supervision of programmatic trading in the securities market, the China Securities Regulatory Commission (CSRC) formulated and issued the Administrative Provisions on Programmatic Trading in the Securities Market (for Trial Implementation), which will be officially implemented on October 8, 2024. The "Management Regulations" proposes to strengthen the supervision of high-frequency trading; Clarify the requirements for transaction monitoring and risk prevention and control; It is clarified that Northbound programmatic transactions shall be included in the reporting management in accordance with the principle of consistency between domestic and foreign investment, and the transaction monitoring standards shall be implemented, and other management matters shall be applied by reference to these Provisions, and the specific measures shall be formulated by the Shanghai and Shenzhen Stock Exchanges and announced separately. This news is good for A-shares, as for whether it is useful or not, it is another matter, quantitative trading and refinancing should be stopped, quantification is a good fire extinguisher, the harvester of retail investors, no matter how big the good, quantification will smash the plate for you, who dares to follow up, last year's 8.28 is evidence, quantification can't help it, there can be no bull market, Chinese retail shareholders have not much rice in their pockets, this is the national situation, but they are afraid of quantitative harvesting, dare not hold shares for a long time, prevail to do T, quantification can't help where there will be a bull market? Put quantification in a cage! Support, the stock index hovering at 3,000 points is inseparable from quantitative trading control and secondary financing.
2. Five departments: carry out activities for new energy vehicles to go to the countryside in 2024
This reminds me of the household appliances that went to the countryside a few decades ago, in fact, they can't be sold in the city, so they are sold to the countryside, if the stock rises to make money, the car doesn't need to go to the countryside at all, when the time comes, I will buy a few directly, one for myself, one for my wife, and one for others! But I didn't make a profit, I lost a few cars, this news is good for the new energy vehicle sector, but the new energy vehicle is currently only rebounding, there will be no reversal, and there is no big market for the time being.
3. The United States announced additional tariffs on China's electric vehicles and other fields
The Yankees have been crazy recently, and they have increased restrictions on us, and they want to sleep and want to restrict open source in the fields of AI artificial intelligence and not give us, and now the only solution is that we should pay close attention to the development of self-reliance and self-reliance, so that we will not toss them all the time, and this news has a negative impact on A-shares.
Fourth, the China Securities Regulatory Commission "bright sword"! Transfer 42 listed companies to the public security to strictly investigate major cases! Wu Qing, chairman of the China Securities Regulatory Commission: Resolutely remove "zombie enterprises" and black sheep from the market
Good! Good! Good! It is to arrest and sentence the black sheep who smash A-shares every day, so that A-shares can rise, which is also the only way, come on, and look forward to coming up with strong and useful measures1
Fifth, Goldman Sachs' latest voice! A-shares are a very attractive market for changing attitudes among overseas investors
Goldman Sachs is fooling around again, where does the attraction of A-shares come from, falling every day, falling every year, falling for 3 years, you tell me where the attraction is, I'm afraid I haven't woken up yet.
6. Shenwan Hongyuan's quick comment on financial data in April: how to understand the negative impact of new social finance?
The economic data released in the first quarter are not good, reflecting that the economy has no signs of improvement, and the short-term impact on A-shares as a whole is negative
Today's A-share trend ideas
Yesterday, the Shanghai Composite Index dived at the end of the day to make up for the gap last Monday (May 6), generally speaking, after the index fell to fill the gap, the next is to bottom out or continue to fall, mainly depending on the subsequent market volume and upward momentum.
The short-term resistance level of A shares is at $1900 on the GEM index, when to officially break through and stand here, the next wave of A shares will begin, and the market will fluctuate before that.
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