Tuesday market judged: two signals switch style
Monday the two cities continue to divide the movement: rapid decline after the opening bell housing sector, banks, coal, nonferrous metals have high open dive, led by index heavyweight shock in the fall, the highest card drop more than 1%, the Shenzhen more than 1.5%, completely covered on Zhou Wuyang line, a great rally to down trend in the end; but not by the heavyweight stocks small market impact, China Securities 500 Index rebounded a new record high, medium and small board index even pull 11 Yang, a new record high. Zhong Pan Shanghai closed at 3129 down 0.51%, the Shenzhen closed at 12,399 or 1.24%, closing 314 900 000 000 cities, recently smashed 300 000 000 000.
Hot spots, mobile payment plates, pre-flow plate has a weak, gold plate, the GEM rose more than 2%; real estate (-3.12%), the oil industry (-2.03%), steel (-1.53%) and other bits Habitat decline in the forefront of the financial industry has reached a 1.02% decline, several power blocks are a re-test a low low pre-form. Market hot spot activity, but signs have been there a little crazy, if you continue to jerk the possibility of increased volatility; situation from the hot, medium and small market capitalization stocks and blue chip differentiation intensified, and this differentiation has accumulated to a certain extent, prone to short-term role reversal.
From Monday to see the trend, small plates index to scale new highs, and left behind 20 points upward gap, speed up the sign up there; if Tuesday continued to rise, the number of days will be tied calendar Shilian Yang (12 with yang, March 2007 30 years on April 16 -07), 10 with yang observed over previous trends, followed by a short sharp shock occurred. Therefore I believe that, although very strong short-term small market capitalization stocks, but the phase of the bubble characteristics of overbought and more obvious, short-term momentum still continue to rise, but a severe shock may occur at any time. Investors should note that in this case the risk reserves, notes: blessings in disguise to depend on the V Fu Xi disaster.
Strategy, given the small plate and has 11 speed index with sun, raising the possibility of substantial volatility, not chase short-term temporary, if the continued sharp spikes, investors can buy low, sell rallies taking the opportunity to wait for adjusted; bank real estate, Pigmented weight of coal, still fell short trend plate, suitable temporary wait and see. The size of the stock style switch plate, small plate in the KLCI should be built on the top and break through 2,400 points, 50 Index also occur only after confirmation.
News focus:
Hu Jintao met with appreciation of the RMB can not solve the trade imbalance Obama
President Hu Jintao on the 12th in Washington to meet U.S. President Barack Obama, on bilateral relations and major international and mutual interest and exchanged views on regional issues and reached important consensus.
(China will not solve the foreign exchange rate under pressure, but their needs will be implemented in the exchange rate reform)
March foreign exchange reserves reached 510.7 billion yuan of new loans 2.4 trillion
The first quarter of 2010, the PBC in accordance with the State Council’s unified plan, to continue a moderately easy monetary policy, and actively guide the rational growth of money and credit to further strengthen the good momentum of China’s economic rebound.
(March credit growth than many people had presumed to be less, but more than regulators had expected, so be it a more balanced data)
Liu: banks can not rely solely on capital markets
China Banking Regulatory Commission Chairman Liu recently attended the “London School of Economics Asia Forum”, said since the date of its establishment in 2003, China Banking Regulatory Commission attached great importance to the construction of the firewall, including to prevent conflicts of interest within the Group to build a firewall in the bank, and commercial banking and capital markets to build a firewall. Banks can not rely entirely on the capital markets for financing, these are common sense, but people often forgetful.
(This may be refinancing for the current bank’s handling of the signal? But there is no capital market can have such a big bank financing channels? Hard to say.)
Iron ore imports in the first quarter high steel prices trading recriminations
More and more towards the end of iron ore negotiations in the “Rush Hour”, the domestic iron ore imports and import prices have once again had a record high, given the already very serious disadvantage negotiations Adds footnote. Data show that a quarter of China’s total iron ore imports 155 million tons, an increase of 18%; total amount of 14.93 billion U.S. dollars of imports, an increase of 42.4%, both record high.
(Iron ore negotiations with China are likely to end in failure, but may lead to imported inflation, domestic pressures, declining corporate profits, and so the results)
GEM baked first quarterly net profit growth of Yu Wucheng Flush
GEM first quarterly baked, Flush Monday night announced that the company’s net profit up by over half.
(GEM now see net profit up 50% has been sufficient to support the current stock price, at least two consecutive years of net profit rose more than 100% can)
Roundup: U.S. stocks recover the Dow was up 11,000
U.S. stocks closed slightly higher Monday, the Dow on September 26, 2008 the first time since closing at 11,000 points. Aluminum giant Alcoa will announce earnings after the bell today, investors in the upcoming first quarter earnings cautiously optimistic. Today, the Dow in September 2008 the first time since opening in the top 11,000 points, intraday high of 11,029.77 points, went up to and eventually above the mark to close at 11,000 points. The Dow Jones industrial average rose 8.62 points to close at 11,005.97 points, or 0.08%; the Nasdaq composite index rose 3.82 points to close at 2,457.87 points, or 0.16%; Standard & Poor’s 500 index rose 2.11 points to close at 1,196.48 points, rose 0.18%.
(U.S. stock market continued to rise in the trend continues, but considering the second half of the global economy still faces significant variables, this rise can last long is difficult to predict)