Yesterday, I published an article discussing with everyone where the next speculative opportunities in A-shares are. I selected four sectors, but due to space limitations, I only analyzed two major sectors. Today, let's talk about the trend of another sector and see where the short-term opportunities in A-shares are.
Firstly, the new technology stock sector represented by the artificial intelligence group will become the main force of the next big market trend, and its prospects are very broad.
Firstly, from various information, we can see that the future of A-shares lies in this sector, known as the new technology stock sector. Artificial intelligence is not only the main leading sector in the US stock market but also in A-shares, as it represents the cutting-edge technology of current humanity.
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Artificial intelligence, which I often refer to as the artificial intelligence group, includes many concepts, including the breakthrough in computing power, the flood of data, and the innovation of algorithms. In A-shares, it includes the metaverse, virtual digital people, virtual economy, large models, AI, and other broad areas.
It is also a project strongly supported by the country, with the establishment of many funds, such as the national fund, ETF, etc., and increased investment in this area.
The reason for saying that it covers a wide range is that there are many other sectors in A-shares that have more or less connections with the concept of artificial intelligence, such as semiconductors, chips, communication equipment in the hands of major forces, Huawei concepts, Xingxian concepts, etc., and there are many specific stocks.
Secondly, the artificial intelligence group in A-shares has two fatal weaknesses.
Firstly, there is a lack of one or several leading stocks, so when the sector is speculated, it loses direction after rising to a certain extent, which is also an important reason why the sector has been difficult to form a climate recently.There is another point, due to the core and key technologies being in the hands of foreigners, and now the information is well-developed, even individual investors are aware of the situation inside. Therefore, in terms of concept, we do not have original technology, and the hardware is also very dependent on foreign countries. In addition, there are some problems in the current relationship between the two countries, and technology is being sanctioned and restricted.
Another one is that the representative companies of artificial intelligence are not listed on the A-share market, because it requires a large amount of capital and technology investment. This makes some small and medium-sized companies on the A-share market lack innovation when doing artificial intelligence, and their own market value is not as much as the initial investment of a large company in an artificial intelligence project.
In between this, there will be a big problem when selecting stocks. If you are not careful, you will buy stocks that only have concepts but no substantial content. For example, there is a stock that is currently being speculated to more than 200 yuan per share, but now it has fallen to more than 6 yuan, and it is about to be delisted, which is very troublesome.
Second, the current trend of the A-share artificial intelligence index and the short-term trend.
Firstly, the short-term oversold is quite serious, and the probability of rebound is relatively large.
The A-share artificial intelligence index from last April to November built three major tops. The big rebound in early February this year rebounded to the neckline position of the three major tops, around 1200 points. The current index is 959.58 points, which is actually equivalent to the position of the A-share market around 2830 points.
From its daily line trend, the decline of this index in the past month has reached 17%, exceeding the market decline of 7%. The short-term oversold is quite serious, and the short-term has basically established that 918 points is its short-term low point, and it has already had the momentum to rebound upward, but the amplitude is limited.
Secondly, from the medium-term trend, it is bearish.Due to the fact that its mid-term moving averages have all started to move downward, including the 20, 60, 120, and 250-day moving averages, this sector will be in a fluctuating and declining trend in the second half of the year, and it is not ruled out that it may set a new low.
Because the main force has basically sold out the chips that make money, the next step is to lower the stock price, commonly known as bottoming out, entering a low position, and starting to absorb chips, commonly known as bottom building. The premise is to let the trapped retail investors cut their meat, which is a process and a necessary path for a bull market.
Thirdly, it is necessary to view the trend of stock prices with a flexible concept.
Just like a person, from childhood to old age, there is a process, and the stock price is the same, from low to high, the main capital strictly follows the principle of buying low and selling high, but this process is relatively long. The process of buying low is the process of building the bottom, just like the rebellious period of a person's growth, and then it grows crazily, and the stock is also.
Only when the entire market is at a low position, and it is quite low, the most important thing is that the retail investors are desperate to cut their meat, the main force will buy, and what you see is that they do not exist or are selling, which is confusing.
After the stock price rises and locks in 1 to 2 times the profit, people will be called to speculate on stocks. At this time, new concepts are flying all over the sky, and the big yellow cattle also dance with the wind. This is the law of the stock market, and other things, including good news, are adjusted according to this law.
The above is a general analysis of the artificial intelligence sector. In terms of operation, there is some value in short-term operations, but not much. Those who are slightly trapped can reduce their positions when the rebound occurs. It is not yet time for medium-term layout, and we should wait patiently for the opportunity.
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