The gap in the stock market means that the short-selling force in the market is relatively strong, and the selling order is dominant. The reasons for this are:
1, major bad news appeared in individual stocks.
When there is significant bad news in individual stocks, such as thunderous performance, it will cause panic among market investors. In order to reduce the losses caused by the late decline of individual stocks, a large number of stocks will be sold, resulting in a continuous decline in stocks.
2. Main shipment
After a long-term rise in individual stocks, the main force has made great gains and made profit-taking operations at the top. Under the influence of a large number of main selling orders, the stock price will open lower with a gap.
In short, when there is a gap in individual stocks, investors still focus on selling, or continue to wait and see, and then consider buying when the stock price rebounds to make up for the gap in the gap above.
Today, the market gap opened lower, which means that the short position in the market has increased compared with yesterday, and various funds are scrambling to flee. When bidding, they are eager to trade at a lower level. Pessimism hangs over the stock market like a dark cloud. This phenomenon is actually normal, no matter which big bear market. It is a release after investors really realize the risk, and it is the result of adding some blindly optimistic funds to pessimism. So, is this pessimistic reality? Of course it is realistic. It is the embodiment of the acceleration of the process of de-frothing of the stock index and the centralized venting of funds and emotions. So, is it possible to stop it? Objectively speaking, no. It will come sooner or later, just like a flood. Instead of intercepting, it is better to divert. The repeated rebound in the process of bear market decline is like interception, but the result of interception is washed away. Might as well let it vent freely. When it is exhausted and has no energy, it is possible to stop falling and stabilize. In the process of falling, there are always some takeovers, which are some funds that reach out and touch the bottom of the stock index. However, the downward trend of knowledge formation in many funds is unstoppable. Don't think you are greedy when everyone is pessimistic. It is right to buy when everyone is selling. Greed and going against the trend will bring you unnecessary harm and loss. Different bear markets have different connotations and different degrees and lengths of pessimism, which need to be carefully understood and identified in practice. Otherwise, it will still be quilted or even cut off. All the above are idle talk, not for reference, beware of misleading.