Technology Stock Main Line Down A Stock Market Trading Emotion Cooling

category:Finance
 Technology Stock Main Line Down A Stock Market Trading Emotion Cooling


After the industrial deduction in recent years, more and more market participants begin to recognize that scientific and technological innovation, independent and controllable, and industrial upgrading are the core driving forces for Chinas economy to maintain quality development. Therefore, whether hot money or mainstream funds, they are willing to allocate the main line of science and technology stocks with technological innovation as the core, so that science and technology stocks with substantial industry support can still maintain a high valuation in the second half of 2018 and the second quarter of 2019 when market sentiment is low.

With the recent re-emergence of the main line of technology stocks, the valuation of these stocks has further recovered, especially the semiconductor industry stocks with chip as the core and the software stocks with self-control as the core. The P/E ratio data are basically 80 times or even more than 100 times.

It is reflected in the stock market, after the big rise of technology stocks on Monday, there was a partial decline on Tuesday, especially in those early-stage strong stocks with outlandish valuations.

A-share market strength pattern will not change

Because technology stocks are the main line of the current A-share market and are directional assets, once such stocks are adjusted slightly, technical indicators will be restored, and short-term hot money will be reimbursed again. That is to say, under the pressure of high valuation, it is difficult for such stocks to appear the main upward trend. However, for a long period of time, the K-line chart of such stocks is still a clear upward trend, which is reflected in the semiconductor head stocks represented by chips, financial technology stocks, cloud computing industry chain head stocks and so on.

Therefore, Tuesdays decline in the main line of technology stocks, although it has a certain depression on popularity, will not change the strong pattern of A-share market, nor will it affect the long-term K-line upward trend of such stocks. In other words, after the recent recession, the share prices of the leading technology stocks will still have a new high.

The same is true for the trend of major indices in A-share market. On the one hand, it is because the main line of technology stocks is only short-term rest, not collective shipment behavior of short-term trend vertex. On the other hand, as the incremental fund sees that the high-valuation technology stocks are difficult to start, it quickly turns to the large-scale consumer stocks, such as brokerage stocks, pharmaceutical stocks and food and beverage stocks, which are relatively backward in growth and suitable in valuation. This makes such stocks perform well on Tuesday. This is because the main index such as the Shanghai Composite Index did somewhat in the afternoon. The reason for stabilization is also the reason why short-term market mentality is relatively stable. Specifically, the transactions between Shanghai and Shenzhen Stock Exchanges are still active, and funds from the North continue to buy in large quantities. There are no stop-and-fall stocks in Shanghai and Shenzhen Stock Exchanges. Correspondingly, there are still nearly 60 stockholders who have reached the 10% increase limit.

To sum up, Tuesdays adjustment is only a technical adjustment of 3,000 points. It will not change the upward trend of A-share market, nor will it change the mid-and long-term upward trend of technology stocks. In operation, it is suggested that market participants can still hold shares in a relatively positive mindset. At the same time, they can actively adjust their positions by making use of the intra-market shocks. First, in the main line of science and technology stocks, it is necessary to judge the matching situation of valuation data, industry trends, the expected growth rate of performance and many other factors. At present, cloud computing, Internet of Things, consumer electronics and other areas of head stock matching is still in an appropriate state, can still be actively tracked. Second, in the main line of large consumption, we can also track the varieties of medicine (especially the head stocks of related industry chains of innovative drugs, innovative drug services, food and beverage, which are in line with the current policy-oriented pharmaceutical industry). In addition, the repeated active securities companies are also a good way to increase their positions. Source: Liu Song_NBJ9949

To sum up, Tuesdays adjustment is only a technical adjustment of 3,000 points. It will not change the upward trend of A-share market, nor will it change the mid-and long-term upward trend of technology stocks.

In operation, it is suggested that market participants can still hold shares in a relatively positive mindset. At the same time, they can actively adjust their positions by making use of the intra-market shocks. First, in the main line of science and technology stocks, it is necessary to judge the matching situation of valuation data, industry trends, the expected growth rate of performance and many other factors. At present, cloud computing, Internet of Things, consumer electronics and other areas of head stock matching is still in an appropriate state, can still be actively tracked. Second, in the main line of large consumption, we can also track the varieties of medicine (especially the head stocks of related industry chains of innovative drugs, innovative drug services, food and beverage, which are in line with the current policy-oriented pharmaceutical industry). In addition, the repeated active securities companies are also a good way to increase their positions.