Category: Money tips Release Date: 2007-03-11
The day before yesterday, many stock intraday daily limit, but the index did not rise much.
Yesterday, tape high platform diving style drop in the Shanghai Composite dropped 268 points.
Generally rose is the cap, lower the day before yesterday.
Take the lead in a dramatic fall yesterday, shares of the stock is expensive.
From such a simple and intuitive comparison, we can find the market's plunge is mainly due to broader market at a historic high in intraday profit plate too hot the market has focused on cap, lower, thus the formation of high-priced stocks to large-scale profit-taking, technical callback feature more prominent.
Broader market fell so much a day, but the index is not a problem, Yeh continues to believe that because the index more representative of the high-priced stocks and blue chip varieties possess market power.
A cap, lower-or medium-priced stocks, after a high-priced stocks, but also means that its disk space for a huge profit that the market hype up the value of the event of any problems, it will shake the faith of their holdings, which is a kind of instinctive behavior of the market. A stock from the cap, lower into a high-priced shares, or a high-priced stocks into a cap, lower-often just a process, the level of stock rotation, it is the stock speculation lies its charm. A well-known laws of the market: No stock can only rise and not fall, nor did the stock is only down not up. This sounds nonsense, but nonsense in the reasoning behind the truth is often easily overlooked.
It is based on this concept, Yeh repeatedly stressed that the low-priced stock selection, the idea of band operation. User Notes left to the market right and wrong.
Broader market up, and broke the 3,000 points, yesterday fell down, fell out of a large daily limit of stock. Volume release of nearly 200 billion the amount of days shows that yesterday's intraday high of shipping is more common phenomenon. The stock market in the chase sell into the rise and fall like the sea, in such a context, Yeh continues to suggest that is: band operation deal with the idea of broad market fluctuations. Market's ups and downs is in itself the best band operating environment, a prerequisite for the success of-band operation is to buy down. Now tape the deep low rate down is precisely the layout of band time.
