The A-share market is accelerating its decline, with the four major stock indices falling by more than one point, and the ChiNext index dropping 66 points, a decrease of 2.1%, leading the two markets down. Will the decline in A-shares continue today? Can the stagnating main board index halt its decline first?
The European and American stock markets are mixed. Last night, the mixed performance of the European and American stock markets has a neutral impact on today's A-share market, where the Dow Jones index fell by 302 points, and the Nasdaq index rose by 54 points; European stock markets are also mixed, with the offshore RMB exchange rate closing around 7.03. On Tuesday, the A-share market fell across the board, with the Shanghai Composite Index down 43 points, a decrease of 1.1%, and the ChiNext index dropping significantly by 66 points, a decrease of 2.1%, leading the two markets down. From the daily K-line trend, the ChiNext index shows a top signal forming a triple top pattern, and under the continuous weakening of the A-share market, the risk of adjustment in the ChiNext index is increasing. The Shanghai Composite Index has been below the 20-day moving average for three consecutive weeks, with a daily average trading volume of only 720 billion. The insufficient trading volume is the main reason for the weak rise of the Shanghai Composite Index, and the lack of volume will also exacerbate the risk of adjustment in the Shanghai Composite Index. Therefore, today's A-share market is likely to continue the trend of declining adjustments, and the risk of adjustment in the double innovation index that has doubled is somewhat greater.
Stagnating consumer themes have better hedging value, and the oversold consumer blue chips are also worth our careful study. This week, the consumer themes have shown a sustained upward trend, with retail, dairy, beverage manufacturing, and food processing sectors experiencing a rebound in weak markets. The rise of consumer themes has two main reasons: first, the approach of the Spring Festival has entered the speculative cycle of consumer themes; second, the stagnation of consumer themes this year has been severe, and the current rise is a compensatory rebound. I am relatively optimistic about the oversold blue chips in consumer themes, especially the leading companies whose stock prices have experienced a halving decline. The oversold stock prices give them the momentum to rebound, and low valuations, high dividends, and stable growth in performance are the basis for supporting their continued price increase.
Stocks with 'China' in their names and the concept of 'China Special Valuation' will once again become the best hedging assets. On Tuesday, the A-share market accelerated its decline, with the main board index falling below the 20-day moving average entering a mid-term weak market; the ChiNext index once dropped 70 points, and the triple top pattern is becoming more apparent. In the context of the comprehensive weakening of the A-share market, risk avoidance is the top priority. Based on the current market information, stocks with 'China' in their names, the concept of 'China Special Valuation', the concept of state-owned enterprise reform, and the high-dividend selection concept are undoubtedly the most valuable hedging assets. These companies are mostly industry leaders with high profits and low valuations, and the continuously growing performance supports their stable dividends; high profits, large market capitalization, and low valuations determine their long-term investment value.