This week, the institutional differences have increased significantly. Some brokers are optimistic about the rebound of cyclical stocks, while some brokers believe that the growth stocks will be even better. The GEM dropped 2.25% yesterday and continues to drop today.
Greedy pig finance believes that pessimistic expectations are repaired, and cyclical stocks will rebound in good opportunities, and in turn recommend steel, cement, paper, and electrolytic aluminum with performance matching and valuation.
Demand remains resilient, and September economic data is released next week, with a good probability. First, PMI hit a new high in 12 years; second, September power generation coal consumption increased by 24.33%, which is the second highest since today; third, the production end, daily average crude steel output maintained above 2.3 million tons, the next growth rate Also rebounded to 5.5%.
Supply of environmental protection and production is resolute, and most of the local documents are more than expected. This week is particularly noteworthy. Tangshan City issued a notice to limit the production time from November 15, 2017 to 0:00 on October 12, 2017. At the same time, Shandong Binzhou also issued documents to limit the production time of the industry to October 1 day.
The price of cyclical products rebounded, and pessimistic expectations were gradually restored. In the past month, under the influence of the economic downturn and the fall in futures in August, cyclical stocks have seen similar pessimistic expectations in April.
With the recent rebound in spot prices of steel, cement, paper, aluminum, etc., the previous pessimistic expectations of the transition began to be gradually restored, and in turn recommended steel, cement, paper, and electrolytic aluminum with performance matching and valuation.
In addition, greedy pigs and financial tips, continue to be optimistic about opportunities in the environmental protection industry, be wary of its potential to become a Q4 reversal industry.
We believe that the growth style continues to dominate, and an important change in the recent market characteristics is the passivation reflected in the stock price cycle.