Looking at the A-share market today, do you all know what this means?
It means the Shanghai Composite is about to start a battle to defend the 3,600-point level.
It means the ChiNext and STAR Market—once the most crowded trades in the market—are already close to being cut in half.
A degree of bubble deflation is good for the market, but we may have already gone past the point where it helps.
Make no mistake: right now, the only bullish force in the entire market is the “national team.”
But the authorities have repeatedly warned us not to pin all our hopes on the national team.
One reason is the fear that people will use it as a quantitative factor to make arbitrage profits. The other is that they don’t want the national team saddled with a heavy moral burden.
It all sounds very nice, but a market where hundreds of millions of people vote with their feet isn’t going to listen to your bullshit.
Now we can see that holding back and hesitating before, keeping one’s reservations and refusing to fire the ammunition, has had a nasty side effect: now they have to make a huge late-day rally every single day.
Too bad that even after they’ve pulled so hard they’re practically smoking, the most they can manage is to keep the Shanghai Composite barely in the green. The market’s panic is already out of control.
I’m at a loss for words over this approach.
To chase small gains while forgetting the greater good is sheer foolishness.
#A股
It means the Shanghai Composite is about to start a battle to defend the 3,600-point level.
It means the ChiNext and STAR Market—once the most crowded trades in the market—are already close to being cut in half.
A degree of bubble deflation is good for the market, but we may have already gone past the point where it helps.
Make no mistake: right now, the only bullish force in the entire market is the “national team.”
But the authorities have repeatedly warned us not to pin all our hopes on the national team.
One reason is the fear that people will use it as a quantitative factor to make arbitrage profits. The other is that they don’t want the national team saddled with a heavy moral burden.
It all sounds very nice, but a market where hundreds of millions of people vote with their feet isn’t going to listen to your bullshit.
Now we can see that holding back and hesitating before, keeping one’s reservations and refusing to fire the ammunition, has had a nasty side effect: now they have to make a huge late-day rally every single day.
Too bad that even after they’ve pulled so hard they’re practically smoking, the most they can manage is to keep the Shanghai Composite barely in the green. The market’s panic is already out of control.
I’m at a loss for words over this approach.
To chase small gains while forgetting the greater good is sheer foolishness.
#A股
