Category: Money tips Release Date: 2006-07-09
Source: Morgan Stanley Investment
The Shanghai Composite Index since June 5 of 3404 point to a strong rebound in Wednesday's highest point since the 4193 points, has rebounded by 7 days and the maximum 790 points, a rebound, rebound intensity can be described as strong, Shenzhen component index is "V"-type reversal new record high. Weekend market adjustments, then the rebound is not an end? The Shanghai Composite Index can record it?
We believe that the main reason for the adjustment over the weekend, it should be since the June 5 points, its lowest point since 3404 have rebounded by 7 days and the maximum 790-point rally, the rally enough time and space, also a step away from the previous high point of the away, the bargain-hunting rallies profit plate and loosened the pressure plate relatively large, short-term to adjust the requirements, and that a rebound in the first round of plays, has the benefit of almost all of the oversold stocks, the rally may temporarily come to an end.
Another reason is that the weekend effect, seems to have become a recent weekend effect is about as vulgar, but now a weekend, as investors worried about a bad weekend issuance of short-term customers, such as on edge, leading to broader market will be a callback, and from the original Friday, brought forward to Thursday. The interest rates and the abolition of interest tax rumors psychological impact on investors.
However, we are short-, medium-Quotes are not too pessimistic about the rally for the first round of plays almost all of the broad based, oversold stocks, which shows that after vibration after, there will be a divided state of stocks for the next round of rally.
From the market's trend and looking at a place near the previous highs were poised finishing is necessary, if we all believe that this place is a top, two-headed the establishment, then the lure is obviously the failure of many is the set of unoccupied, So now the point and the time being will not be at the top, the future clearly hit a new high in the broader market, the market promising unanimously recognized only when it could really lure more successful.
Is currently the rate hike cycle, the key is not added in June, while the commentators have generally agreed that the interest tax should be abolished first. In any case, the market has already digested, by conventional means, then introduced minimal impact on the stock market. We are still quite bullish trend next week.
In the broader market shock process, the price structure will be adjusted. From the 3404 starting point of this wave of Quotes of view, it clearly has become the second-tier blue chip to do more of this wave of Quotes of the main driving force, is that this wave of Quotes of the main species in the future of the stock market will continue to be the mainstream varieties have become the largest increase in the current round of Quotes plate. The early varieties of oversold bounce from the current situation has been basically completed the three-rebound, and the prices coming to an end (except for victimizes species).
In fact, the broad market rally at the company closed seven-yang occurs after a certain level of preparation, indicating that after a crash, investors have been more rational. Looking at the rebound, second-line blue-chip blue-chip stocks, shares of brokerage stocks and shares part of the assets into a strong rebound, most record high, while the relatively poor performance of the stock is relatively weak performance of the structural differences have clearly demonstrated. This situation should be the management want to see results. Thus, in "structural foam" has been punctured, the broad market by a substantial performance and shares the theme of the leading rally and continue the journey of the bull market is a balance of interests demands the best outcome.
Thus, in the next operation, investors should promptly adjust the position structure, and a lower limit of 4,5 for the early varieties should gradually rallies oversold bounce out of the game (except for the market victimizes species), but to seize the opportunity to do callback Good Huanchou, second-line blue-chip callback is a good opportunity to absorb! Some of the better performance is expected to fully pay attention to individual stocks, choose an intervention, institutions will certainly be the wave of Quotes homework.
