The biggest news over the weekend is nothing more than the new nine-point policy. There are many interpretations of it, which I will not repeat here. Some are bearish and some are bullish. What I want to say is that it is impossible for A-shares to have a bull market. Why? Let's talk about it in detail below. Let's take a look at the news over the weekend. It's basically all bad news.
News 1
The situation escalates! Iran launches strikes against Israel and many countries announce the closure of their airspace.
Interpretation: Anyway, all kinds of bad news are paid by the A-share market, which has become commonplace. But what I want to say is that they are all bombastic, the goose is the best example, and the double Y is just a mouthful, and it can't be done at all. It's impossible, absolutely impossible, it's not a time to fight to the death.
Message 2
Peripheral markets plummet
Interpretation: The sharp rise of the US dollar index is related to the double Y. The Nifty Index plummeted for only one reason, that is, they were too overvalued and the bubble was too big. It is hard to imagine that a listed company that is rich enough to rival a country can continue to rise. What's more, there are seven sisters, and the bubble is not ordinary. They must fall by at least 2/3 to be safe.
Message 3
Chongqing “gas meter running fast” incident: a joint investigation team including the public security department was set up to enter the gas company.
Interpretation: It is simply lawless. I dare not imagine who gave them the courage. They are crazy about money, and this is a state-owned enterprise. Trust, how much trust can we destroy? Whose problem is this? It is so blatant. I hope the truth can be revealed.
News 4
Unexpected bad news! Bitcoin once plunged by more than $6,000.
Interpretation: More than 7 billion yuan of funds evaporated from the entire network in 24 hours, and 260,000 people were liquidated. The sector is bearish, which is bad news for the digital currency sector and also a big negative for the computing power sector.
News 5
Nine Articles
Interpretation: In 2004, the National Nine Articles were implemented, and the A-share market plummeted by 40% before bottoming out. In 2014, the National Nine Articles were implemented, and the market did not recover until 2015. Moreover, the size of the A-share market at that time was not a registration system, there was no transfer and financing system for the A-share market, the quantitative system of the A-share market was still in its infancy, and there were only more than 2,000 listed companies in the A-share market. The current A-share market cannot replicate the market conditions of that time.
The positive effects of the National Nine Articles vs. the four negative effects, do you think the A-share market will be good next week? CITIC Securities and Haitong Securities are still under investigation, and the securities sector is expected to continue to fall. The securities sector is the touchstone of A-shares, and the decline of securities will lead A-shares to continue to seek support.
There are two support lines for A shares, one is the 125-day moving average, and the other is the line connecting the lows at the end of February and the end of March. Whether it can hold up is really unknown. It is difficult to see hope in the future market. As for the positive effects of the National Nine Articles, there is no consensus. There are still many bearish voices.
The market outlook for next week is not optimistic. One word: "difficult"! Two words: "very difficult"! Control your position well. Don't lose more than 2635 before reaching 2900.
