On October 14th, the proportion of A-share stocks with a turnover rate below 3% continued to rise to 72.18%; the proportion of stocks with a turnover rate above 5% further decreased to 13.87%, falling below the starting point of the rally two years ago and currently still far from the key threshold. Overall, the trading activity of individual stocks continued its cooling trend, and the low turnover characteristic was further strengthened.
-------- 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 that the market is likely to encounter a temporary low point, 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), the market will experience a strong profit-making effect, making the market trend sustainable. During a bull market, this indicator will remain above the threshold, and the market will see a broad-based 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.
