What's going on with the rebound in the market? Video teaching

Answer 1

The rebound in the market may be caused by the following reasons:

###1. From the perspective of the power of trading
1. ** Lower willingness to sell **
- In the process of continuous decline, if there was a situation of shrinking and closing, it meant that the narrowing of the number of sales was far greater than the number of purchases. Because if the willingness to sell was still strong, it would continue to sell on the same day, instead of shrinking. Therefore, this kind of shrinking rebound indicated that at this position, the willingness to sell further was weakening.
- For example, when the market was in a relatively low state, many investors were stuck, and some desperate investors might leave the market sporadically. However, once there were signs of stopping the decline, such as a shrinking rebound, it would alleviate the pessimism of the investors in the market, thus further suppressing the number of sales in the market.
2. ** The influence of buying power **
- Even if the buying power did not increase significantly, as long as the selling power decreased significantly, it could also lead to a rebound. In a situation where the market was unstable or there was no major positive news to stimulate a large amount of new funds to enter the market, the seller's reluctance to sell could cause the price to rise and cause a rebound.

###2. From the perspective of capital and market structure
1. ** Operation of main funds **
- Sometimes, the rebound of the market may be the result of the operation of the main fund at a specific stage. For example, the main fund might have already laid out some stocks in the early stage. When the market fell to a certain extent, they did not need a lot of money to push the stock price up. As long as they pulled some large-cap stocks or key stocks slightly, they could cause the market to follow the trend and achieve a rebound in the market. As the main capital did not invest in new funds on a large scale, the trading volume would not be significantly enlarged, showing a shrinking rebound.
2. ** Imbalanced market structure **
- If the performance of large-cap stocks and small-cap stocks in the market diverged, it could also lead to a rebound in volume. For example, the weight of large-cap stocks was greater. When large-cap stocks rose under the protection of the main capital, while small-cap stocks were not active or the capital flows were relatively balanced, the market might shrink and rebound. Because the trading of large-cap stocks was often concentrated between a small number of large funds, it might not require a large number of exchanges to push the stock price up, so that the entire market index rose without a significant increase in trading volume.

###3. From the perspective of macro policies and external environment
1. ** Potential impact of macro policies **
- The domestic policy environment had a potential impact on the market. For example, the central bank lowered interest rates, which reduced the returns of funds in banks. In theory, this would prompt some funds to find other investment channels. However, if the market sentiment had not fully recovered confidence, this part of the funds might slowly flow into the market and would not immediately bring a large amount of trading volume. In this policy context, once there were some positive market signals, there might be a rebound in volume.
- When policies such as raising the dividends are introduced, it may change the expectations of market participants. Some investors may begin to be optimistic about the long-term trend of the market, but in the short term, they are still in a wait-and-see state. There is no large-scale entry of funds, which may also lead to a rebound in volume.
2. ** The uncertainty of the external environment **
- In an uncertain external environment, such as the upcoming U.S. election, market participants would be cautious. Before the election results came out, the funds would not rush into the market, but some of the funds in the market may be based on some internal positive factors (such as domestic policy fine-tuning or underestimation of some sectors, etc.) to push the market tentatively, resulting in a shrinking rebound.
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