Category: Money tips Release Date: 2006-01-10
"In a fall of heavy" is the essence of the law under adverse stock selection. Falling during times of adversity can be the first stocks in general should pay attention to, particularly in times of adversity crash appeared on the plate more worthy of attention, because it is often leading the next wave of rally plates. In recent years, volatile trading in the tape box, this phenomenon not uncommon, in terms of its features are:
1 day Morning crash occurred section gone against the tide strong, turnover significantly larger;
2, or the front plate Stock Index at the end of divergence is more prominent, more obvious heavy volume, intraday volatility is relatively large;
3, the overall shape is more identical plates stocks, often pre-showed a larger distribution of target chips are concentrated in the high peaks area.
Be sure to select under adverse stock selection method in the broader market fell towards the end of use of them. Because in the broader market fell early stage, many of the main plate to support the market needs are often arise out of adverse economic shape, but its rally after the relatively short and easy to be lured many traps. Mentioned here that we stress, in times of adversity plates on the basis of a larger decline appeared.
Dropped sharply after the first run out in times of adversity plate is worth focusing on, because it is outside the main foresight approach in advance Jiancang where the most obvious signal: in a bear market, after the stretching of the decline in market sentiment is extremely lax, in the asset seriously diminished and the market under the influence of public opinion, "rebound slimming down in order to avoid more serious decline" in the mainstream thinking of becoming the most direct investors to fear a conditioned reflex, such a psychological collapse after the Yindie Quotes often is far more prominent . Therefore, the outside is often the one hand, the main indicators of deliberately suppressing the phenomenon of shares of manufacturing in order to strengthen the market crash fear on the other hand openly in the oversold plate to create a substantial shock Quotes. Moving in line with a rebound due to its shape, and its volatility, large intraday Once again rebound, investors in the "rebound slimming down" consciousness, driven by often choose to leave the hedge-based realize that this is the main force pulled up to Jiancang's ultimate goal.
On the leading stocks, its target at the end of divergence is often the most serious and most likely induced Shadie disk out, so a strong technical rebound in demand as the main excuse is used to create the essential foundation for intermediate Quotes. On the way, the outside is often the main use of "limit-open shall be weak" in the market thinking, in the limit-open when the manufacture of shock and, ultimately, to enlarge the time of transaction to complete the rapid collection of low-chips.
Examples: In early 2003, SMS, Quotes Jiancang plate means in times of adversity interpretation of head. 624 Quotes from the tape after the two cities has been dominated Yindie, January 2 is sharp fall, but the day of science and technology network plate (at the time did not know these subjects for the SMS concept of operations) to buck the trend, on which two cities Leading shares Chengcheng Culture, Xiamen Xindeco morning daily limit has been seen, and with the index sharply Pandie, these two appear repeatedly leading shares opened sharply limit-signs, pouring a very significant intraday sell-off plate, resulting in significantly larger transactions from the previous month . However, with the market, a bearish market outlook Quotes of the plate when the leading stocks in the broader market stabilized a bit sharp when pulled straight heavy volume.
