Insurance and securities have risen across the board, the A-share market has stopped falling and rebounded, and the Shanghai Composite Index has once again stood above 3900 points. Will today's rise in A-shares continue? Is there hope for the Shanghai Composite Index to stand above the 20-day moving average again?

The US and European stock markets rose slightly. The slight rise in the US and European stock markets last Friday night has had a certain positive impact on today's A-share market, with the Dow Jones Index rising by 104 points and the Nasdaq Index rising by 72 points; European stock markets saw more declines than increases, and the offshore RMB exchange rate closed around 7.06. Stimulated by favorable news, financial stocks surged across the board last Friday afternoon, with the insurance sector jumping by five points and the securities index rising more than 2%. Driven by the strong surge of financial stocks, the A-share market has stopped falling and rebounded, with the Shanghai Composite Index rising by 27 points to stand above 3900 points again, and the two major indices in the Shenzhen market both rose more than 1%, with the daily K-line standing above the 20-day moving average. From the perspective of the daily K-line, the Shanghai Composite Index has successively stood above the short-term moving averages, and the trading volume has also exceeded 700 billion, with only 20 points left to the 20-day moving average. Today's Shanghai Composite Index is expected to continue last Friday's upward trend, but standing above the 20-day moving average will require at least 800 billion in trading volume, so the Shanghai market needs an additional 100 billion in incremental funds today.

The oversold pharmaceutical stocks are worth our serious research as an investment direction. High-profit pharmaceutical stocks are worth our long-term attention, and those with stable growth in performance but oversold prices will have greater growth potential in the future. In the pharmaceutical sector, I favor two types of companies: one is blue-chip stocks with high profits but whose prices have experienced a halving decline; the other is high-performing stocks with stable growth in performance over several years. High-profit, low-valuation pharmaceutical blue-chip stocks have better hedging value, while high-performing pharmaceutical stocks with stable growth have stronger short-term explosive power. In the context of the pharmaceutical sector continuing to decline, we should seriously study these two types of pharmaceutical stocks, as the decline in stock prices will create better entry opportunities, and the decline in stock prices will also increase their future upward space.

Low valuation, high profit, high dividend, and stagnant stock prices of blue-chip stocks remain the best hedging assets. For the past two weeks, the A-share market has been facing the issue of insufficient trading volume, and the sluggish trading volume will increase the risk of A-shares pulling back after a rise. Personally, I believe that as long as the Shanghai Composite Index has not stood above the 20-day moving average, the risk of a downward adjustment will not disappear, and hedging operations cannot be neglected. From the perspective of avoiding risks and holding stocks for the long term, low valuation, high profit, high dividend, and stagnant stock prices of blue-chip stocks have always been the best quality assets. Blue-chip stocks with low valuations and severely stagnant prices have better stability, while high-profit, high-dividend blue-chip stocks have greater growth potential; if the A-share market continues to strengthen, they are expected to catch up, and if the A-share market shifts from strong to weak, they will also be the best hedging assets.