On October 8th, the proportion of A-share stocks with a turnover rate below 3% slightly decreased to 70.61%, roughly the same as the high point in April; while the proportion of stocks with a turnover rate above 5% decreased slightly to 15.28%, it was still higher than the low of 14.73% in mid-September; overall, market trading activity remained low.
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 encounter 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 emerges in the market, making the rally sustainable. In a bull market, this indicator will consistently remain above the threshold, leading to a broad-based market rally; while in 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.
