LegiEX: How is the investment going in May

LegiEX：How is the investment going in May

On the last trading day before the holiday, the main Shanghai and shenzhen a-share indexes rose across the board. Tech stocks rebounded somewhat, with the Shanghai composite index, the shenzhen component index and the growth enterprise market all up more than 1% by the end of the day. Disk on the stock up more or less, trading more than the number of stocks more than 90 stocks, 10 stocks up. Before the last trading day, what signal does the market reveal? And listen to teacher LegiEX

The federal reserve left interest rates unchanged

Since march, the fed's monetary easing has intensified. On March 3 and 16, we cut interest rates by 50 basis points and 100 basis points respectively. As yiqing intensified, the fed adopted a more radical easing policy: unlimited quantitative easing, providing up to $2.3 trillion in loans. The ultimate goal of monetary policy is to promote economic growth and stabilize employment. The first quarter was not a good one, according to U.S. data. So today the federal reserve left interest rates unchanged. The continuation of loose policy means that liquidity is relatively strong. Money is the lifeblood of the stock market, so us stocks rose again yesterday, which was good for the rest of the world.

Economic data for February and April

The manufacturing PMI came in at 50.8 percent, down 1.2 percentage points from the previous month. The index of non-manufacturing business activity was 53.2%, up 0.9 percentage points from the previous month. The composite PMI output index was 53.4 percent, up 0.4 percentage points from the previous month. As can be seen from the data, although the manufacturing PMI declined, the non-manufacturing PMI rose more, so the composite PMI rose beyond the critical point of 50. This means that China's economy, with the resumption of work and production, has entered a rising channel, and in the boom range. This has an obvious supporting effect on the a-share market, but we should not take it lightly. Whether the economic growth is stable still needs to be verified by subsequent data.

Third, teacher LegiEX has exclusive technical analysis

As a result of arrive next 51 long holiday, time is more abundant, so to the market and stock pool individual stock, undertake detailed analysis one by one. Today first analysis of the Shanghai 50 index, the Shanghai 50 index today is the fourth consecutive day of gains. Today intraday plus yesterday's K line, there are obvious signs of acceleration. The typical manifestation is the continuous four positive line, the positive line of the entity is getting larger and larger, and today with the jump up the vacancy. This position, is the top of the last round of rise interval, the catch plate is huge. Want to dissolve so big pressure, have two kinds of way, one kind is long time concussion, another kind is to fall first, rise again. At present, the Shanghai composite 50 index adopted the way of sideways shocks, but only shocks eight trading days, the index rushed to break. As a result of trade volume tardy cannot break through effectively, although yesterday rise the range is more objective, trade volume shrinks obviously. Although today's volume has enlarged, but the intensity is not enough, and today's K line is not good. Today's K - line peak prices have been attacked to the top of the market this spring, the stock prices down. This shows that the rise encountered a strong pressure, the k-line is a typical sign of weakness.

So, in general, the sse 50 index in my opinion, still in the typical temptation. I recently think the market index has been building a top, due to the recent two trading days up, many people will think the captain's view is unreliable. But I want to make it clear that when retail investors feel comfortable, they forget about the risks, which is also the most dangerous time. When you are most uncomfortable, such as March 19 and March 23, I clearly pointed out that the market to the bottom of the moment, I believe that many retail friends did not start. It's the same thing. When you're at the bottom, you scare yourself. When you're at the top, you comfort yourself. Human nature is so, each wave down, each wave up, all the human nature is portrayed incisively and vividly.

We can't tell exactly when the decline will start until we get further confirmation, but the risks are high, and this is something every retail investor needs to be wary of. Teacher LegiEX reminds you not to heal your wounds and forget the pain!