On August 10th, the proportion of A-share stocks with a turnover rate below 3% declined for the fourth consecutive day, falling to 63.12% from near its April high. The proportion of stocks with a turnover rate above 5% rose for the fourth consecutive day to 19.2%, from near its April low, but is currently still near the threshold. Attention should be paid to whether market trading 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.
