Forcing the air to end the market entering the oscillation adjustment period

Monday Shanghai and Shenzhen stock index again hit a new high after both fall, the end of the city but volume diving, close prev fell 2,600 point integer pass, Shen Chengzhi below the million point mark.　　The author believes that with the recent rapid rise in the market of blue chips after the fall, the continuous forced empty market or the ending, the market will enter the oscillation adjustment period. Many factors led to the adjustment last week's a-share market volume rebound, the Shanghai Composite Index week rose to 5.98%, refreshing nearly 7 weeks since the largest weekly record. But yesterday, the city was heavy diving, day K-line to collect long yin lines.　　What caused the sharp adjustment in Monday? The first is due to the technical surface pressure amplification. As of Friday, the Shanghai Composite Index rose for 7 consecutive trading days, while the biggest source for the big rally was blue-chip stocks, and the market style changed markedly. It can be seen that blue chips in the near period of performance and "5.30" after the blue chip market has a lot of similarities, if SocGen, the bank's shares, pulled 8 straight lines, the biggest increase was close to 30%, after the stock's biggest monthly gain in August 2007, while real estate stocks Vanke A, Sinopec's biggest rally in recent days was more than 15%, the best performance in the bull market. However, the rise of the market of blue chips need to consume a lot of money. Yesterday in Shanghai trading volume again more than 170 billion yuan, and since the 1664 rebound, whenever the Shanghai daily turnover of more than 160 billion yuan, then will appear or large or small adjustments.　　As a result, when yesterday's blue chip continued to flush, multi-party funds were quickly consumed, short-term adjustment also started again. The second is caused by fundamental uncertainty. April economic data were released in Monday, the total level of consumer prices announced yesterday fell 1.5%, the factory price of industrial products fell 6.6% year-on-year.　　The successive declines in CPI and PPI have exacerbated investors ' fears of deflation and raised concerns about future economic data, which has had a negative impact on Monday. Finally, the sell-off of small and medium market stocks. It can be seen that the Monday two cities and small market share of the adjustment trend is obvious, the two cities stocks rose less than 210 home, 12 non-St shares fell. From the index, the majority of the stock market shares fell 1.75%, the middle and small market share of the majority of the deep comprehensive point of 3.42%, and the smaller and medium-sized Plate comprehensive index of the decline of up to 3.75%.　　As a result of small and medium-sized market share retail base good, the effect of earning money is strong, the Monday plunge on the negative impact of market sentiment is not small. Blue-chip performance is the key with the small and medium-sized market stocks gradually weakened since last week, how the market will depend on the operation of the blue chip in the next period of time. Blue-chip recent rise in the market, can be said to be in the weather, geography, people and conditions, but many of the short-term performance of blue chip, can be said to have been close to the peak of great bull market before the performance. But we should see that while economic fundamentals are on the mend, this is only a recovery, and there is a big gap between the peak of the economy. So, May ago, it was a valuation depression.Blue-chip stocks have been better at meeting their economic recovery expectations after a series of gains in the early months of the month.　　And yesterday, the big blue chip appeared to drop the trend, also confirmed that the future stock index trend is unlikely to soaring, up and down twists and turns running will be the main characteristics of the market. Overall, the start-up of blue chips is institutional investors intentionally, and indeed there is a large number of new funds involved in the Monday drop in the fall may be difficult to make these funds to stop, there is a high level of concussion.　　But after some contention, if the more excellent economic data can not be presented in front of investors, coupled with the introduction of the gem, the lifting of the restrictions on the current tide of capital diversion and other negative factors, then the market in real before the bull, will deduce the adjustment market. Throughout the history of capital market development, the rise and fall is always the same theme, such as the 2008 unilateral decline and the 2007 such a unilateral rally will not be reproduced in the short term, such a trend can not well protect the interests of investors. As a result, the volatility of the stock market is inevitable no matter how the future economy chooses to recover. And at a time when there is a downside risk, investors have to take the pace of volatility and not go after stocks that have risen sharply and are overvalued.