New flagship center time-sensitive points will lead to market volatility Money Tips

Category: Money tips Release Date: 2006-10-14

New flagship center: time-sensitive points will lead to market volatility

Last weekend the central bank raised interest rates and Treasury interest tax reduced to 5% of the two heavyweight news not only failed to form a pressure on the market, but bad news as the only boots fall to the ground, and the parties have chosen a substantial upside. With previous bad performance after Dikaigaozou different is that short-term market storm last Friday had been ahead from the start, and today is ignoring the bad, to go the way of high Tiaokonggaokai washed along the way to 4200 points above the short-term trend evident hesitation to take advantage of market characteristics of short squeeze and eventually the second consecutive day on the Shanghai Composite Index closed up more than 3% of the Great Yang Xian. Along with the index steadily climbed, disk hot spots clearly active, especially in iron and steel, energy, electric power, automobile, chemical fertilizers and pesticides are funding the day sought after second-line blue chips, shares oversold themes also appeared compensatory growth trend, the market's overall performance as a breakthrough platform for post - acceleration pulled.

Recalling in this round since early July has been driven by the heavyweight counter-market, even though we have July 6 the title of the article clearly pointed out that the short-term adjustment in the end, but the market always lift the index heavyweights have great continuity distrust, which also resulted in the operation of pre-index has been shown repeatedly in the hesitation panic characteristics of consolidation, until a breakthrough last Friday after the 60-day moving average obviously has money to enlarge covering signs. As Industrial and Commercial Bank of China (601398) in the bottom of 5 yuan repeatedly bottomed, we at the end of June early July prompted investors to focus on its impact on the market movements as well as the role of the Unit led until last week, a breakthrough when finishing platform recognized by the market. After that we highlighted the petrochemical, steel, energy, electricity, communications, and gradually drive out the bottom of the large cap blue chips rising in the early stages of the process by the market also has doubts. This is mainly experienced a May 30 start of the continuity of the crash, the market has to do more, their confidence has been hit. In this regard, we have set at the end of the process have repeatedly emphasized "the need for a restoration of confidence in the market process", then in pre-market downturn, volume shrinkage, the multi-can only be used to support the market heavyweights pulled up. From now on victories achieved, the market has made this strategy, the main significant effect, not only on the Shanghai index back above 4,200 points in a single day trading volume is also magnified 150 billion more, take a good medium-term the market has a very an active role.

It is worth mentioning is that, after all, the market has just been shifted from the low active and look forward to the short-term broad market can be sustained heavy volume rose in two days seems a little more difficult. The last phase of the market from the mainstream - banking, insurance, real estate stocks such as the current trend of view, short-term shocks have launched one after another finishing requirements. Such as: Industrial and Commercial Bank of China (601398) from the bottom of the largest increase since the start has been 20%, but today, near the second platform, a high point in March, received a heavy volume long gapped quoted above, short-term there are some technical finishing requirements; but, as China Merchants Bank (600036), China Life Insurance (601628), Ping An of China (601318), etc. are the heavy volume form of stagflation, indicating the completion of these leading varieties pulled a breakthrough in the short-term mission, to collate all the requirements, which the short-term The Shanghai Composite Index will form in terms of a certain degree of repression.

Technically, as the pre-4200 point high above the area, not only the existence of a large number of hold-up disk, short-term market's rapid rise has also accumulated a lot of profit-disc, in this pressure region, a profit lock-plate disk and there to dampen the market possible. The medium-term moving average has been fast-break after a withdraw sword to confirm requirements. And today in the daily and weekly stock index line on the left by a huge jump the gap on the short-term market will also have to contain a certain role. The Tomorrow is the second this month, time-sensitive points, this, our new flagship center that: short-term market quickly pulled up in a row to 4200 points, after the existence of shocks withdraw sword at the top of the requirements, investors chase short-term need for caution, can wait withdraw sword gaps and medium-term moving averages to confirm a stable operation after the Opening. Details of the new flagship center landing site.

Quick upside in the current index of the occasion, how to grasp the market hot spot position and species mix will be adjusted to optimal state, will be the future control of market risks, decide the future level of benefits a top priority.