A-Shares: Not Just a Gap, Can the Market Hit New Highs?
This morning, A-shares opened significantly higher with the support of various favorable factors, giving the impression that a major market trend is coming, but it doesn't quite seem like it.
What kind of trend is it exactly, and can it maintain the upward momentum in the afternoon to keep the gap?
I have a few personal opinions to share for everyone's discussion.
Firstly, today's gap in A-shares is not simple!
The specific significance is as follows: First, replacing a gap with another gap is a typical bull trap.
Yesterday, the A-share market was still hovering below the gap, but today it suddenly opened significantly higher.
Without considering the major favorable factors, A-shares should have opened lower and moved lower today.
Since the major forces had already anticipated the official favorable news, yesterday's trend can also be seen as intentional, preparing for today's high opening.
Just like the gap on September 9th couldn't be held, today's gap is also unlikely to be held.
If the gap appears at this position as a consensus among all market participants, it has significant meaning.
If it is stimulated by favorable news, it has no real significance and will be filled quickly.
If it is quickly filled, today's high opening is a bull trap, and everyone should pay attention to the trend of A-shares filling the gap in the afternoon.
Secondly, today, it is still the large-cap stocks that are leading the rise, and the large-cap stocks without participation have a feeling of being trapped.
Today, the major forces in A-shares are still operating on both sides, with both hands on deck.
Stocks heavily held by social security and insurance, as well as those heavily held by Northbound capital, all opened high together, especially the Northbound capital, which significantly opened high in the morning on the FTSE A50 futures, cheering for the A-share market's high opening.
Securities, the Northbound capital's Mao Index, and Ning's portfolio all opened high and then moved lower, directly leading the A-share market to rise and then fall.
The Shenzhen Component Index and the ChiNext Index in Shenzhen are close to turning green, which fully indicates that the major forces are not really interested in the market but are focused on selling out, and they are doing so on both sides.
Thirdly, many fans don't understand why large-cap stocks have to rise to sell out.
Let me explain briefly: Large-cap stocks have a huge market cap and need an active market to achieve the purpose of selling out, which requires the market to maintain a large trading volume.
If the market shrinks, these major forces can only force the stock price to rise without any support, because no one is taking the stock, and they can't let the stock price fall on its own; otherwise, the A-share market would have long been below 2600 points.
Only by continuously raising the stock price and making a rebound at some important positions can they attract some speculative small and medium-sized capital, making the market active and reducing the pressure on the major forces.
This is the trap of attracting more buyers, doing it both at low and high positions.

Fourthly, A-shares do not need any favorable news now, which is determined by its technical trend and the position it faces.
Now, the major forces want to sell out banks, oil, coal, white liquor, new lithium, and other industries.
They need favorable news the most.
A market that cannot survive without favorable news is inherently in a downward trend.
Some people are in a hurry to sell out, and only when selling out, they need favorable news, which will save a lot of trouble and capital.
If it's not for selling goods, who would bother with favorable news?
In fact, today's favorable news is for the real estate industry.
Everyone can look at the trend of the A-share real estate index, which has already filled the gap in the morning, and selling out is already an open matter.
Secondly, today's rebound in A-shares has entered the second half, and it's time to pack up.
First, by looking at the trend of A-shares in the morning, we can find the problem.
Without a significant increase in trading volume, it can be basically determined that it is a bull trap.
Before 10:30, A-shares were falling and trading volume was shrinking.
Then, the major forces forcibly pulled up the securities index, quickly raising the market index.
From the time-sharing trading volume, it can be seen that there was a concentrated process of trading volume, which was the trading volume made by various major forces.
However, the market lacked followers, and when the market was raised again, the trading volume was already insufficient.
Secondly, many people have not yet seen the way of A-shares.
Whether it is favorable news or the cooperation of various major weight plates, their task is to cover the social security and insurance heavy positions to sell out.
If you understand this most simple truth, you will not be so blind.
A market pattern that rises for the purpose of selling out, how can it reverse?
For retail investors, it is a bull trap.
If you can't help but chase high, you will be caught immediately.
So what should we do?
Get out at high prices, this is what we retail investors should do now.
I shouted at everyone to get out at high prices when it was 3000 points, and I shouted to get out at high prices when it was 2800 points for nearly a month.
Now I continue to remind my fans and friends, get out at high prices!
At this time, no matter how the major forces do the plate, as long as it rises, you think it is the opportunity for the major forces to let you get out, you should grasp the opportunity, rather than leave the reality of A-shares, in the blind you think.
In summary, the A-shares in the afternoon are a trend of falling and falling, and today's rebound has basically done this wave of rebound, and has entered the 2800-2850 point range that I have been reminding everyone in recent days.
It has reached a very sensitive range, and we should always be alert to the big risk, and carefully identify whether our own positions are short-term rebounds in place, and always be ready to get out.
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