The A-share market today is indeed quite out of whack! The entire market has entered a "two-eight divergence" trend, mainly due to the disruption caused by the three major financial sectors, leading to a high-then-low market with a plunge, leaving the investors who chased the rise to once again face the grim reality of losses, which indeed accelerates the rate at which retail investors are losing money. This kind of market is truly terrifying!

The real factor causing the A-share market to be out of whack today is the high-then-low plunge, leading to issues with capital and popularity in the secondary market. Financial stocks have been performing independently strong, triggering a siphoning effect of capital and popularity, causing capital outflow from other thematic stocks and their stock prices to enter a bearish trend. When a general decline occurs, the inevitable victims are the retail investors, increasing the speed at which they lose money.

1. High-then-low plunge and selling pressure

Affected by the restructuring news of Guotai Junan and Haitong Securities, the reorganization wave in the securities industry has been reignited, and the fervor for creating aircraft carrier-level securities firms has returned, igniting the fuse for the rise of the securities sector today. Unfortunately, it's just an excuse for retail investors to be given empty promises.

At the opening, Guohai Securities was sealed at the limit, Jinlong Shares strongly sealed the board, and Tianfeng Securities also hit the limit, while China Galaxy had a weak board during the session, with other companies like CICC, Pacific Securities, and Capital Securities following suit.

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In addition to the collective rise of the securities sector, the banking and insurance sectors also cooperated during the session, jointly supporting the independent strength of the Shanghai Composite Index, which ultimately led to the high-then-low phenomenon. The lack of sustained rise in financial stocks caused today's A-share market to be out of whack.

2. Retail investors are accelerating their losses

The A-share market is dominated by individual investors, who are mainly retail investors, and the probability of these retail investors making money in the stock market is too low; they are almost destined to lose money.

Take today's market as an example; due to the general decline, thematic stocks did not rise but fell instead, and thematic stocks are the main force for retail investors. The decline in thematic stocks today will inevitably lead to increased losses for retail investors.

Currently, retail investors are generally still in a state of being trapped, and some are even deeply trapped. When stocks in hand fall again during a deep trap, the money of retail investors is evaporating again. Even if retail investors have money, they can't afford to lose it like this!3. What are the reasons?

Upon a thorough observation of today's market, it is noted that financial stocks are leading the gains while thematic stocks are leading the losses, causing retail investors to lose money at an accelerated pace. The real reasons are as follows:

Reason one: Influenced by the intervention of the national team to protect the index, the national team took advantage of the news of the reorganization in the securities industry today and once again activated the three major financial sectors. However, these three major financial sectors are all talk and no action, failing to reverse the weakness of today's A-share market.

Reason two: Affected by the inherent weakness of small and medium-sized thematic stocks, most thematic stocks are still in a downtrend, and many individual stocks have not even stopped falling; therefore, today's widespread losses are due to the inherent weakness of the individual stocks.

Reason three: Influenced by the factor that A-shares are currently bottoming out, A-shares are indeed grinding the bottom, and during the bottoming phase, the battle between bulls and bears is more intense. Bulls dare not pull strongly, and bears also dare not easily sell off, remaining in a state of watchfulness.

Final summary:

From the above analysis, it is known that the main reason for the abnormality in today's A-share market is the impact of the merger and reorganization news of Guotai Junan and Haitong Securities, which led to A-shares rising and then falling sharply, with financial stocks protecting the market and thematic stocks leading the decline. Such a market will only cause retail investors to lose money.

It seems that A-shares have not yet reached the bottom and will continue to seek it. The short-term risks have not been eliminated, and retail investors are called upon to continue to control risks well.