Three major stock indexes collectively opened higher on November 20th, with storage chips and other concepts leading the gains How do we view todays market?

On November 20th, the three major indexes opened slightly higher, with the Shanghai Composite Index up 008%, the Shenzhen Component Index up 007%, and the ChiNext Index up 007% On the market, concept stocks such as storage chips and lithography machines, as well as sectors such as real estate, petroleum, and papermaking, opened higher, while concept stocks such as short video games and sectors such as communication equipment and brokerage opened lower Opening Comment The three major indexes opened slightly higher, with storage chips and other concept stocks leading the gains

Nov 20, 2023 investment-fund, a-share-(renminbi-denominated-common-stock)

Four Major News of the Weekend

Hello, today is Monday, November 20th, 2023. The stock market is about to open. There are four major news items over the weekend: the Renminbi exchange rate is soaring, global markets rebounded across the board. Is the A-share market stable today? Please read carefully and patiently. I believe you will find the answer.

Firstly, on Friday, global stock markets rebounded across the board. The weekly closing prices of the three major U.S. stock indexes all showed three consecutive gains: the Dow Jones index rose by 0.01% at the close on Friday, the S&P 500 index rose by 0.13%, and the Nasdaq index rose by 0.08%. Energy stocks were all on the rise. This has a positive impact on the A-share market today.

Secondly, in terms of Chinese assets, the Renminbi exchange rate has risen nearly 900 points in a week. The China concept stock index rose by 0.27%, the FTSE China A50 futures index rose by 0.36%, and the Hang Seng Index futures main contract rose by 1%. This is a favorable boost to the A-share market today.

Thirdly, at the same time, there are four major events over the weekend that may have an impact on the future trend of the A-share market. It is necessary to give all stock investors a wake-up call to ensure they are well-informed and able to remain calm and composed!

The China Securities Regulatory Commission (CSRC) will adhere to the “one department, one policy” approach to resolve the risk of default on bonds by large real estate companies and continue to address the problem of concentrated delisting of listed real estate companies.
Major positive news for the real estate sector! Three government departments made a major announcement once again emphasizing “ensuring the delivery of finished houses”.
The CSRC: Prohibit short-term trading, insider trading, and market manipulation through derivative transactions.
Several broad-based ETFs saw explosive trading at the end of the session! Market participants say there is a possibility that the Central Huijin may buy again.

Interpretation: Positive news over the weekend in the real estate industry chain could promote a rebound in the real estate industry chain today. This will benefit the rebound in the broader market indices.

At the same time, the CSRC has taken decisive action to intensively monitor derivative trading or deter short-selling forces. Meanwhile, the Central Huijin may once again provide support to the market, which brings confidence and additional funds. Therefore, this is favorable for the A-share market on the following Monday.

Fourthly, the question arises: will the A-share market be stable today?

Firstly, since the market bottomed out at 2923, A-shares have seen four consecutive weeks of upward rebound. Short-term resistance was encountered at the 60-day moving average on Wednesday, and on Thursday, there was a half-day fluctuation that tested the 3030 level, followed by a rebound supported effectively by the 20-day moving average. This is equivalent to gathering strength for a more forceful attack.

Secondly, the Renminbi has seen a big counterattack of nearly 900 basis points this week, and global stock markets have risen across the board. Today, Monday, northbound capital may return to the A-share market, and major institutions, under the guidance of Central Huijin’s support and bottom-fishing, may continue to be bullish on A-shares. Therefore, the A-share market may once again challenge the 60-day moving average of 3080 today, Monday.

Furthermore, for the past few weeks, the CSI 1000 index has seen four consecutive weeks of upward rebound, successfully breaking through the 60-day moving average. The ChiNext 50 index has also successfully broken through the 60-day moving average.

The Shanghai Composite Index has only experienced weak fluctuations due to the weak performance of heavyweight blue-chip stocks in sectors such as banking, insurance, real estate, and liquor. Therefore, the positive news over the weekend regarding these sectors may stabilize and boost the A-share market today. So it can be said that the rise of the A-share market today is basically stable!

Lastly, in terms of sectors, I will continue to maintain a strategy of investing in the automotive industry chain with my left hand, and the securities sector with my right hand, repeating the strategy of high selling and low buying, and rotating individual stocks.

Wishing everyone who gives a thumbs up a successful start, a fulfilling life, blooming prosperity, and good luck!

Market Trends and Strategy Discussion

Chaos in the morning, climax in the afternoon.

Without a main theme, driven by emotions, the three certain varieties on next Friday created an astonishing limit-up, achieving a full promotion.

This will trigger another round of promotion race when the market opens tomorrow, weakening the recognition of the high standard of automobiles.

No action was taken today, with only one position in high-standard automobiles. The profit cushion of this round has not been played yet, so another limit-up is needed tomorrow to launch a free attack.

There are frequent positive news in the photovoltaic sector, hoping for resonance with US-China trade news.

Emperor Han Wu continues to climb, and the logic gradually becomes apparent. The wave of reducing holdings is actually the best opportunity to increase positions (hindsight).

The market has not fully transitioned to pricing based on performance, and the expectation of interest rate cuts has not fully emerged.

Some institutions are already sprinting for year-end performance, but unfortunately, the direction is also short-term. In a vulnerable market, funds will only seek profits, with no regard for faith.

There is nothing wrong with learning about short-term trading. When A-shares become a mature market, it will be difficult for ordinary people to have opportunities for rapid wealth accumulation.

Stock market rebounds, index positive.

Many stocks rose in the morning and trading volume showed some signs of recovery. The probability is high that it will return to over 900 billion yuan.

The sudden rise in the market and the continuous appreciation of the exchange rate are related.

In fact, this period of time is truly a honeymoon period for the capital market.

The exchange rate continues to appreciate, economic data has stabilized, and the annual GDP targets have been raised by many institutions.

The yield of long-term US Treasury bonds also plunged, and US stocks have basically regained the ground they lost before.

There is no reason for the A-share market to plunge at this time. According to reason, the Shanghai Composite Index should have reached around 3,150 long ago.

This is the minimum, because there are indeed favorable conditions in the current environment.

At a time like this, if there is no rebound, the question is whether the United States will suddenly raise interest rates, or how the global economic recession will be next year, everything is unknown.

The Shanghai Composite Index has been stagnating, and it should catch up with the rebound pace more quickly. There is really no time to delay.

Considering the appreciation of the exchange rate and the relatively stable economic data at present,

the overall stock market is positive. Large funds and foreign capital tend to prefer index funds such as the CSI 300 and the SSE 50,

and are more inclined towards heavyweight stocks and assets with scarcity.

Coincidentally, these have not performed well recently.

So it is still possible to continue to be optimistic about the rebound in these varieties.

Every adjustment is an opportunity to focus on. As long as we are not in the red, we buy during the rise.

In the short term, there are no major problems, and in the long term, the valuation is low.

It is currently a relatively safe investment opportunity in the market.

In the previous period, it was okay to speculate in short-term hot spots and individual stocks.

Because at that time, many stocks had the opportunity for oversold rebound after bottoming out.

Now the valuation of small and medium-sized stocks is already high.

The 2000 index is currently equivalent to the Shanghai Composite Index at around 3,250.

The Shanghai Composite Index is now only at 3,070, and it can’t even reach 3,100.

This valuation difference is too large, so it is very dangerous to buy small and medium-sized stocks or related index funds at this time.

The opportunity still lies in the rebound of large-cap stocks and related index funds.

Control your position well and slowly follow this plan, there will be opportunities ahead.

The oversold rebound trend is still continuing.

It is a more grinding and weak upward trend.

It has not rebounded completely yet.

Index Analysis

The target of the Shanghai Composite Index remains unchanged, still focusing on the range of 3,050-3,150. Above 3,150 is uncertain, but below 3,150 the rebound is still not sufficient, so we can continue to expect.

The ChiNext Index is also in a rebounding and oscillating phase, looking at the range of 2,000-2,200.

There should be no problem if the Hang Seng Index is below 18,000, but above 18,000, do not chase buying.

Advice for novice investors

The best strategy for novice investors at the moment is to stay stable, as there are no particularly significant investment opportunities.

It’s just some short-term hot spot opportunities and oversold rebound opportunities.

If you can seize them, take them, and if you can’t, you can watch. Cash is still the most important right now.

Don’t exert excess effort and position in small market and less important trends.

There are sectors and individual stocks that perform well every day, but the probability of success is very low.

The real money-making opportunities are in bull market conditions, when the CSI 300 Index is trending upwards.

It’s not easy to make money at other times.

As ordinary investors, we only have limited funds.

If we try to seize every opportunity, we will eventually face various risks.

This will result in too frequent trading, with losses far exceeding profits.

In the long run, it is definitely better to deposit funds in a fixed deposit rather than constantly working hard in the stock market for more than a decade.

At this time, there is a serious valuation differentiation in the market, with most small and medium-sized stocks deviating far from their fundamentals.

The hidden risks of individual stocks are becoming greater and greater, which may not be realized by friends who are not solid in their basic skills.

So it is important to avoid individual stocks as much as possible at this time.

Although there are some heavyweight stocks, large-cap stocks, and assets with scarcity at low levels, it is still difficult to choose.

The only safe option to hold at the moment is index funds such as the CSI 300 and SSE 50.

Everything else is not very good and there is no need to hold or trade in the short term.

If you don’t have extremely cheap chips to hold all the time, there really aren’t many opportunities in the current market except for these two index funds, waiting for a rebound.

It seems that there are a lot of opportunities, but in reality, there are only a few opportunities that are relatively safe and have visible safety margins.

Position control is still important, and it is better to hold more cash.

For friends who already hold undervalued stocks or index funds

Just be patient and wait for the rebound. When it rises enough and the oversold rebound gradually reaches the target, you can take profit and cash out.

Then wait for the opportunity to reposition during the next adjustment.

The overall investment rhythm is still to prioritize risk.

Currently, it is not an easy time to make money in the stock market. There are not many safe investment opportunities.

Do not be impulsive!

Thanks for the likes.

Doing the same thing year after year is truly not easy. It would be difficult to maintain the enthusiasm for creation without everyone’s support.

Wishing you all success! Have a happy life!

That’s all for now, take a break and continue later.

Today is the 1,018th day of writing daily review notes.

I hope to meet more like-minded friends here and learn and grow together every day.

Remember: when greed arises, all hopes are dashed!

By controlling risk, profit will come along.

Risk Warning: Investment involves risks, and entering the market requires caution!

Do not blindly invest or invest impulsively.

Please make scientific and rational investment judgments based on your own comprehensive situation and specific market conditions.

Learn more, enrich your investment knowledge during normal times.

Wishing you health, happiness, freedom, and prosperity.

Technology industry chain rebounds strongly, positive signal in the market.

Today’s A-shares came as a pleasant surprise, with excitement mounting. Do you know why? Without further ado, the bottom fishing has paid off!

Today, the market bottomed out and rebounded, even reaching a high point momentarily. The RMB exchange rate is currently rising, and the northbound capital flow is also returning. Main players are heavily increasing positions in the technology industry chain. The market is expected to continue surging near the 3090-point level.
Two important signals have emerged in the market: First, the robot sector has soared, with the sector index breaking through this year’s new high. Market leaders like Siasun and CAPINFO have also broken out of their consolidation patterns. Second, the photoresist and advanced packaging segments of the semiconductor industry chain are also on the rise. Domestic software and AI sectors are also showing abnormal movements. Holding on to the technology industry chain firmly and increasing positions, the rebound is expected to continue.
Today, neural interfaces, industrial mother machines, artificial intelligence, and lithography machines have seen the largest gains. Main players have significantly increased positions in the defense industry and technology sectors, but the technology industry chain has stood out as the most powerful. In the domestic software sector, leaders like Inspur have accumulated positions and are making breakthroughs. Companies in the semiconductor and consumer electronics industries are also preparing for breakthroughs. This signifies that the rebound strength of the technology industry chain is getting stronger and there is still plenty of room for imagination in the future market.
How will the market evolve next?

Yesterday, it was emphasized that there was a high probability of a collective surge at the opening on Monday, but the Shanghai 50 and heavyweight sectors face significant resistance. The market is expected to rise towards the 3090 level at the beginning of the week. Today, it reached a high point near 3072. Looking at the 15-60 minute trends, the bottom has formed a golden cross and there is rebound momentum. Tuesday is expected to continue upward.

Some people ask: Can the market surge directly to 3090 points this week? Currently, in terms of short-term trends, it is certainly possible. It is easy to surge upward, but it is difficult to hold on to the gains. The market is being pushed along, with the heavyweight stocks not exerting their strength. Therefore, there is a possibility of a high pullback in the latter half of the week, providing opportunities for buying at low prices.

On the Sidelines

My outlook on the market remains unchanged as of November 15th.

Several popular opinions suggest that the rebound is far from over, and reassure everyone to continue holding their positions. I find this extremely dangerous. Even if there are still higher points, we should stick to staying on the sidelines and observe who is right.

My previous market analyses

Turned Green, Yo!

Take a look now??? Turned green, yo.

Consumer, healthcare, new energy, semiconductor, and artificial intelligence sectors are up, while Hong Kong and US stocks remain cautious.

Written at 12:55, from WeChat Official Account: Xiao Dao Xu Xing

Over the weekend, offshore renminbi rebounded strongly, and has now broken through 7.20. With the stabilization of the renminbi exchange rate and the easing of relations with major countries, it is expected that the net outflow of foreign capital since August is nearing its end. The stabilizing renminbi exchange rate and appreciation of domestic assets are beneficial for the return of northbound capital, which is good news for A-shares.

Looking at the market today, as of midday, the Shanghai Composite Index has risen, with a general upward trend in sectors.

1. Consumer

Liquor stocks have risen today, providing better opportunities for considering additional positions.

2. Healthcare

Healthcare stocks have risen today, temporarily taking a wait-and-see approach.

3. New Energy, Photovoltaic

New energy stocks have risen today, with the downside estimated to be at a mid-term bottom.

4. Semiconductor

Semiconductor stocks have experienced a slight decline today, still hovering around the short-term resistance mentioned earlier. Take a wait-and-see approach for now.

5. Artificial Intelligence

Artificial intelligence stocks have experienced a slight increase today, taking a wait-and-see approach for now.

6. Hong Kong Stocks

Hang Seng Index has risen today, taking a wait-and-see approach for now.

7. US Stocks

NASDAQ rose slightly in the previous trading session and is currently at a relatively high position. Take a wait-and-see approach for now.

Trading Record: 2023/11/20

WeChat Official Account: Xiao Dao Xu Xing