Category: Money tips Release Date: 2007-05-30
Source: Xu Bin Guotai Junan
Wednesday broader market volatility, increased the Shanghai Composite there have been rapid in the intraday drop in the Shanghai Composite is running to 5-day moving average stabilized, some covering formed yesterday indices gapped gap. From the trend point of view, V-reverse indicates that the current broad market is still in a strong among the afternoon, after finishing the session at the completion of the broader market is still expected to continue upward room for expansion.
Tape re-V-reverse
The V-tape intraday reversal in the near term are not uncommon, and each time intraday market's dive last also proves that only a small scare show, therefore, I believe that the short term, broader market is still expected to continue upward room for expansion. I determined to see more is mainly due to the current market environment remains the high side, solely from the financial perspective, a large increase in the number of accounts and funds a large number of issued capital in the market is bound to the surface to provide support, which is why each time stocks in intraday repeatedly able to demonstrate V-reverse trend. From today's point of view, there is a clear market's volume amplification, which indicates that the market is still falling during the influx of bargain-hunting there will be a lot of money, so money is bound to block the proliferation of the broader market weakness is likely. On the other hand, from the stock market's supply side, the current is 5.1 in the first few post-holiday trading day factors such as issuing new shares is still in the vacuum period, the city will not have caused the number of funds and psychological pressure.
More importantly, the RMB exchange rate in the "51" vacation after the first day of trading to 7.6951 yuan to 7.7 yuan central parity for the first time mark a breakthrough, but a sustained, rapid appreciation of the yuan's rise will inevitably lay the basis for the market. Meanwhile, the worldwide emergence of large-scale merger is also expected to continue to stimulate the rise in U.S. stocks, so the overall market environment remains the preferred term, short-term investors can still look more appropriate.
Concerned about the surrounding market trends
Although the short-term broad market is still bullish, but the existence of market risk remains can not be ignored, the risk is more likely to come from surrounding markets. Although the emergence of large-scale merger is expected to push up short-term market, but generally agreed that the emergence of large-scale merger in a certain extent, may indicate that the U.S. stock market peaked in the future, therefore, I believe that many investors are looking at the same time, the market outlook operation still need to focus on the dynamics of stocks, if the stocks fell sharply, then the risk of A shares will be revealed.
Operational aspects, investors can focus on the following sections. The first is the benefit from the global mergers and acquisitions wave plate, which may focus on domestic mergers and acquisitions of listed companies is expected, such as Bayi Iron & Steel, Handan Iron & Steel, Laiwu Steel, etc. In addition, the proliferation of global liquidity situation, foreign mergers and acquisitions of stocks subject the imagination of a larger short-term space, such as the Zhuhai-rich, the sun shares Xugongkeji, etc. are also expected to continue the performance of the future. Second, some benefit from the currency appreciation plate rapid appreciation in the renminbi against the backdrop of the future is expected by the market, sought after, such as aviation, paper, real estate and other plates the next cause for concern, in particular, may be concerned about is one of the first quarter of the fund taking big positions in individual stocks, such as China and Thailand shares, Air China and so on. Key species: Emei A (000888): Tourism is the second section after the yuan appreciation of the real estate section is another big beneficiary. Companies rely on tourism resources and is the world's dual nature and culture heritage, both in tourism consumption and the twin concepts of cultural consumption. Continued appreciation of the RMB under the larger environment, tourism and consumption will have a huge space for development, the company operating characteristics of a strong monopoly will be more benefit from the appreciation of the RMB. The secondary market, the stock lagged behind the broader market trend evident in the sharp appreciation of the renminbi to benefit plates pulled up, driven by stock market outlook is expected to once again break up can be bargain-hunting interest.
