Category: Money tips Release Date: 2006-06-28
Warrants market bubble of the transactions currently being implemented by the system. Warrants the implementation of the current market is T +0 trading system, which will attract investors to participate in a number of short-term speculation. At the same time a collection of warrant price is used bidding mechanism, that is, the price of warrants is determined by supply and demand. When the warrant is in short supply, often leading to warrant the price distortions, market prices far higher than their reasonable value.
In the absence of the implementation of market-maker system, simply by investors voluntarily compliance with investment philosophy is very difficult. After all, money to attract investors into the stock market effect is the most important factor. In this case, moderate foam is very normal. Warrants from the current overall performance point of view, there may be stacked into a bubble.
The stock market rebounded slightly in August, or 2.85%, but the warrants market as a whole, as well as involvement in the Baoshan Iron and Steel JTB1 Vanke HRP1 maturity effect, the trend is very weak. 27 the two cities as high as 20.95 percent average decline in the C of E, in which Baosteel JTB1 prices fell 95.17 percent, China Vanke HRP1 price is down 99.21%. As the two cities dropped the price of warrants, warrants to the convergence of the inherent risks.
The plunge in August for September to create the conditions for a rebound. The next one is due in Wuhan warrants warrants, expiring on November 22, which means that in the next two months, the warrants do not expire. It also makes a very good markets warrant relief.
Broader market's recent trend is likely to catch the top of the trend. While Wednesday's Shanghai Composite Index fell 6 points only, but Shen Chengzhi, deep Composite Index and the Shanghai and Shenzhen 300 Index has shown a yin yang situation package. Meanwhile, many individual stocks has undergone tremendous diving trend. The indications are that the tape is currently in a very dangerous situation, relying solely on large-cap stocks is very difficult to attract more outside funding.
In this atmosphere, put warrants began to do something. Wednesday airport put (580,998 market, information, advice, more) has come on strong. It's strength also led to the rise in number of put warrants.
The author believes that in order to put the airport warrants is expected to continue, led by strong, short-term investors should be concerned about.
In the short term, put warrants there is some chance. But investors must understand: they rise in the accumulation process is just foam. Warrants particular, the value of put warrants return process is the process of a typical spiral downward.
For the majority of warrants for their part, the "bubble" stacking process is a decline in real terms in the way of the rebound process. And over time, diminishing the value of each wave is also gradually reduced the intensity of a rebound. So for sound investors, I recommend steering clear of warrants. Although they have a very large short-term temptation, but its prospects are bleak.
For aggressive investors, I recommend that you participate in warrants may be appropriate "bubble" stacking process. However, to note that warrants can only do T +0, and to control the point and stop point of a good profit, once the break will have to resolutely stop unwinding. (Send
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