After US stocks hit a new high, they fell sharply overnight. The Dow Jones Industrial Index closed at 29102.51 points, down 277.26 points, or 0.94%; the Nasdaq closed at 952.51 points, down 51.64 points, or 0.54%. ; The S&P 500 index closed at 3327.71 points, down 18.07 points, or 0.54%.

The decline in US stocks may have a certain impact on the opening of A-shares next Monday, mainly due to the atmosphere. Although the trend of A shares following the decline and rise of U.S. stocks has weakened since June 2019, whenever U.S. stocks have a sharp decline, A shares often open lower.

The ChiNext Index and the Shenzhen Component Index have filled the gap, and the ChiNext Index has reached a new stage high. Among the three major stock indexes, the Shanghai Composite Index is still fluctuating below the gap. Judging from the current situation, there is a high probability that the Shanghai Composite Index will fluctuate back and forth under the gap in the short term, waiting for the emergence of the turning point of the new coronavirus and the emergence of new positive news.

If an inflection point occurs, the corresponding industries such as medicine, medical care, and pharmaceutical commerce will be affected by a certain degree of popularity, and related concepts also require attention to risks. After the hype, if there is no support from strong performance in the future, it will often be "a piece of cake".

Hot sectors may pass away, and sector rotation will gradually begin. Before the sector rotates, the market may continue to fluctuate. Next week, we need to be alert to the risk of shock. Of course, sector rotation is expected to see funds from hot sectors flow into relatively low-valued and high-quality industries and listed companies, which is expected to create a situation of "grouping together for warmth."

In the short term, A shares may fluctuate, and there is still pressure under the gap.

1. As Tesla’s major shareholder, Fidelity Fund reduced its holdings to 5.381 million shares, with its shareholding ratio reaching 2.983%. Prior to this, it held 9.093 million Tesla shares, with a shareholding ratio of 5.291%.

The reduction of Tesla stock holdings will also have a greater impact on the stock price. The Tesla concept has been on the rise recently in A-shares, and I think it’s better to treat it rationally. Currently, the valuations of listed companies with A-share related concepts are still a bit "slightly expensive". Although they have the potential to explode in performance, the price-performance ratio will be greatly reduced when the valuations are "slightly expensive".

Moreover, regarding Tesla, if the U.S. stock market and the company do not continue to be positive, there will often be a risk of a correction after a boom.

2. WHO Director-General Tedros Adhanom Ghebreyesus stated that masks and other protective equipment to fight the new coronavirus will be exhausted worldwide, and the world is facing a long-term shortage of personal protective equipment.

The author himself is in Hubei and has not left home for more than ten days. The safest thing is to stay at home and wait for the victory of the new coronavirus.

From the perspective of A-share related listed companies, they have been "hotly speculated", and even listed companies within the concept have 10 boards in 10 days and 8 boards in 8 days. There is indeed a huge demand for masks, anti-virus, protective gear, etc., and we are also working overtime and overtime to catch up. However, I think the price aspect is suppressed, and in the context of the surge in sales in the first quarter, the surge in sales will not continue for a long time. After the market is hyped, there may not be a surge in performance or long-term good performance. Against this backdrop, caution is advised.

3. Due to the impact of the new coronavirus, everyone is "staying" at home, and the industry that benefits the most is "telecommuting".

Listed companies with A-share related concepts also perform well and are expected to gain trend recognition through stage recognition and have potential. However, there are two points that need to be noted. One is that after the turning point of the new coronavirus, the gradual resumption of work in batches may have a greater impact on "teleworking"; the other is that the valuation of relevant listed companies is "slightly expensive". Regarding the industry, you need to pay attention to risks and caution.

4. In the week after the market opened during the Spring Festival, the total net inflow of foreign capital was 30.062 billion yuan. Although there was a certain outflow on Friday, I think foreign investors are optimistic about A shares and will not stop.

Thinking from a future perspective, this type of high-quality stocks is still a trend. Gradually, more and more foreign capital will flow in, and high-quality stocks will also see better value recognition.

5. The Federal Reserve pointed out in its semi-annual report that after three interest rate cuts, the current monetary policy stance is appropriate.

From the perspective of Shanghai Composite Index valuation, the current valuation has risen to 14 times. Although the valuation is higher than the previous sharply lower opening, it is still at a historical low. Although there is selling pressure and the risk of shock above the gap in the short term, there is no need to panic or be nervous about such a valuation, whether from the midline or the long term. Looking at the long term, the opportunities far outweigh the risks.

The weekly level MACD indicator of the Shanghai Composite Index has shown its first green column, but I personally do not think that this time the green column will be a green column range that will cause the stock index to fall deeply. One is that the valuation is at a historical low, and the other is that the stock index is still not high.

For listed companies with high quality, undervaluation, high dividend yield and strong certainty of future performance, if you look at the long-term, the opportunities far outweigh the risks.

This article does not contain any recommendations. The stock market is risky, so investment needs to be cautious!