On August 7th, the proportion of A-share stocks with a turnover rate below 3% declined for the third consecutive day, falling to 63.86% from near its April high. The proportion of stocks with a turnover rate above 5% rose for the third consecutive day to 18.62%, but is currently still near the threshold. Attention should be paid to whether market activity can continue to recover.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, especially near historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to have reached a temporary low, making a reversal or rebound likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), a strong profit-making effect will emerge in the market, making the market trend sustainable. During a bull market, this indicator will remain above the threshold, leading to a broad-based market rally; while during a bear market, this indicator is mostly below the threshold, and occasionally exceeding the threshold should be viewed with caution due to the risk of a pullback after a surge.
