A-shares performed generally well today, with the only downside being that the trading volume did not keep up; after all, the three major indices showed a divergence with a focus on fluctuation, while sectors and individual stocks showed a general upward trend, allowing shareholders to recoup some losses and get closer to breaking even, with the ability of individual stocks to rise being the ultimate truth.

Although A-shares performed well overall today, there is still some trepidation from the market and investors, stemming from the fact that the downtrend in A-shares has not changed. Weak rallies within a downtrend do not hold much significance. Additionally, the trading volume in the Shanghai and Shenzhen markets is not keeping up. What exactly is the reason for this?

Firstly: Individual stocks are showing a general upward trend, continuing the rebound and catch-up rally; this may once again attract existing funds to flow back into thematic stocks, which, with the support of incremental funds, could see a brief rebound. However, the general upward trend in thematic stocks will not last, so it is essential to cherish the current general upward trend. After the general rise, there will inevitably be a divergence, or a return to a pattern of gradual decline. Be cautious in chasing high thematic stocks.

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Secondly: The indices maintained fluctuation throughout the day, with the Shanghai Composite Index seeing an expansion in gains during the afternoon session, mainly supported by heavyweight sectors. Cyclical resource stocks rose to drive buying, the securities sector also fluctuated upwards, and even banks and insurance companies picked up, with these heavyweight forces supporting the stability of today's trend.

Thirdly: The fluctuation of indices and the general rise of individual stocks is a rare occurrence. When this happens, there is a high probability that the style will change. Perhaps the catch-up rally in thematic stocks will come to an end, and conversely, the catch-up decline mode in heavyweight stocks will also end. Next, A-shares are likely to return to a pattern of "protecting the index, falling individual stocks."

Fourthly: After the recent turmoil in A-shares, the trading volume in the Shanghai and Shenzhen markets has shrunk to around 700 billion, which is insufficient. Although individual stocks maintained a general upward trend today with 4,000 stocks rising, many of these increases were without volume. Such volumeless rises are not optimistic and are likely to be a trap set by the main forces to attract retail investors to chase and take over.

How will A-shares perform tomorrow?

The characteristic of today's A-shares was a volume contraction with a general rise. Tomorrow, the style of A-shares is expected to change, with a high probability of shifting to index fluctuation and a general decline in individual stocks.

It is predicted that A-shares will continue to fluctuate tomorrow, but a structural market will emerge, with heavyweight stocks likely to be stronger and small and medium-sized thematic stocks weaker. This means a return to the pattern seen during the Dragon Boat Festival holiday, where if the index does not fall, individual stocks will, marking the end of the catch-up rally in individual stocks.

In other words, the overall trend of A-shares tomorrow will be a "stable index, falling individual stocks" pattern, mainly due to the differentiation between large and small sectors.Firstly: The catch-up decline pattern of heavyweight stocks will come to an end. Today, during the midday session, there was a noticeable influx of capital into heavyweight stocks, with ultra-large funds gradually absorbing into large-cap stocks; if large-cap stocks perform in rotation tomorrow, they will fully stabilize the index, but remember that large-cap stocks only support the market and do not drive it up, keeping the market in a horizontal state.

Secondly: The catch-up rally of small and medium-sized thematic stocks is about to end, as thematic stocks have been universally rising for three consecutive trading days and it's time for a correction; moreover, the existing funds cannot continue to support the rise of thematic stocks, and stocks without volume will gradually fluctuate downwards, continuing the trend of deflating bubbles.

In summary, today's A-share index showed differentiated volume contraction and oscillation, while individual stocks were able to maintain a universal rise, which is what investors have been looking forward to, as long as individual stocks can rise, it's better than anything else; the only regret is that the downward trend of A-shares has not yet changed, the volume has not kept up, and there are concerns about a shift in the stock market style, which is not very optimistic for the trend of A-shares tomorrow.

If the trend of A-shares tomorrow really matches the prediction, the ones that will be in demand are still the blue-chip stocks. The rise of thematic stocks is short-lived, and the real risk lies in thematic stocks. Blue-chip stocks that are worth holding to avoid losses are the ones to own.