The undercurrent of the "Eleventh" stock market: the market signal behind the tide of reductions
At this time of the year, the intricate economic situation often shows some unexpected changes, as if the undercurrent is surging under the sea, looking at the stock market, the "Eleventh" holiday has undoubtedly become a proof of real money, the world is celebrating, but I didn't expect our stock market to quietly blow the wind of reduction, what stories and signals are hidden behind this? Then let me take you to an in-depth analysis and see what we all missed this holiday season
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The stock market is like life, sometimes calm, sometimes stormy, during the National Day, many investors are full of hope, looking forward to the stock market after the holiday will usher in a wave of rise, but unexpectedly, the news of the reduction continues, as if it is a sudden storm, people are caught off guard
Let's take a look at a set of amazing data, in the data as of 16:00 pm on October 7, 2024, the Oriental Wealth Data Center shows that 46 companies have issued announcements to reduce their holdings, and the announcement of increasing their holdings is even less than a single digit, only 9
"Small and beautiful" companies are in the center of the tide of reductions, of which the number of companies with a circulating market value of less than 5 billion has reached 29, and there are 7 companies with a market value of 5.01 trillion yuan, and 9 companies with a market value of 10.1 trillion yuan 000038. It's light and has little substance
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In the blink of an eye, it is the National Day holiday, and the well-known Wingtech Technology is also in the list of reductions, which is staggering, its major shareholder Zhuhai Ronglin plans to reduce the number of its company's shares by no more than 12,428,097 shares in the next three months through centralized bidding transactions, which accounts for 1% of the company's total share capital as of September 27, 2024, at this time, Wingtech Technology's share price rose 254% in September, and the market value touched 406.8 billion, who would have expected, but the result was a decline of nearly 80% after the highest point, Leaving many investors dumbfounded
In addition to the reduction of enterprises, the increase in holdings also makes people feel reverie, although during the National Day holiday, there are only 9 announcements related to the increase in holdings, but there is also a company that has attracted much attention, Valin Seiko announced three months ago that it would increase its holdings of 75% of the company's shares, as soon as the news came out, the stock price directly rose to the limit, the latest announcement shows that after three months, the increase plan has not yet been implemented, it can be seen that in the changing market, the authenticity and execution of the news is the focus of investors
So, what is the relationship between these tide of reductions and overweights and the market? In the market sentiment of this holiday, two ideas are intertwined and collided, forming a complex situation, which is not only the transmission of information, but also a profound reflection of capital flow and emotional fluctuations
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From the perspective of market sentiment, the holiday is approaching, investors' optimistic expectations are often hit by the uncertainty of the market, many people choose to wait and see in the face of the tide of reductions, and even sell their stocks, further exacerbating the downward pressure on the market
Next, into the valuation pressure of the discussion session, the overall valuation level of the stock market is rising, but the valuation of many of the popular tracks has been too high, resulting in some major shareholders to reduce their holdings in advance to avoid risks, every investor is pondering the market trends, coupled with some investors' uncertainty about the prospects of economic recovery, virtually increased their willingness to reduce their holdings
The macroeconomic environment is also an important factor that cannot be ignored, the slowdown in global economic growth, the expectation of the Federal Reserve to raise interest rates, like a dense cloud, hanging in the minds of investors, all of which make you and I have to be alert, how the market will evolve in the future, if in the long run, changes in the macro environment are inevitable, and the arrival of this wave of reduction may be the prelude to all this
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Let's talk about the future direction of the stock market, the previous wave of reductions may affect the market in the short term, resulting in tight liquidity, reduced trading volumes, and more significant gains and losses, but in the long run, there are also potential opportunities behind this storm
In the future, investors should pay attention to the structural changes in the industry and market, such as policy support, economic recovery, etc., these factors may lead to some new investment opportunities, and if they can seize these opportunities, they may be able to usher in their own investment spring after the "National Day" holiday
In the fierce market competition, grasp the opportunity, risk avoidance, is every investor must master the skills, if the market fluctuations, investors should remain calm, do not be swayed by short-term price fluctuations, maintain the ability of rational analysis, is a good way to deal with future market changes
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When we look to the future and look forward to the future stock market, although the tide of reduction has brought a lot of uncertainty, but also buried a lot of new possibilities, what we have to do is to master our own rhythm in this wave of market waves, and be ready for rational investment to meet more challenges and opportunities
To put it simply, no matter how the market changes, the real winners are still those who keep a clear mind in the turbulence, deeply analyze the market dynamics, and make wise investment decisions