China's stock market is waiting for the boots to drop

9 mag 2019

We have seen that originally optimistic negotiations, the storm changes, the market will also bear a huge impact. This topic is too sensitive to discuss. But here are a few logical questions to explore.

1. The market responds according to the worst expectation, and the strategy of the institution will not be adjusted at any time. In other words, the trend of the market in recent days is a response to next Monday. But there are several possibilities, the worst of which is that if the talks collapse, the market will return to square one. If it's possible to beat this result, the market will have a short-term rebound, because the technical oversold situation will not last.

2, look from the current trend, here belong to 2 waves, but strength and amplitude are more than expected, if fundamental changes, I think there should be a retaliatory rebound may be here, a lot of mark down, actually not because the deleveraging, big probability is already feeling the back of the management problems, so the release of the risk in this way. And the current trend of oversold, that risk released, and overcorrection, so there is demand for a rebound in the market, regardless of the outcome, the rebound will come.

3. Although the overall environment has not been clearly improved, China needs to develop and develop a more stable financial market. This idea will not change, so there will be policies to support the market, which should be included in the so-called preparation by the authorities.

Strategy: focus on the weekly line ma18 support