Category: Money tips Release Date: 2006-11-23
Source: Guangzhou Bandung
Abstract: The broad market volatility adjustment is not yet over, but also shock. The Shanghai Composite Index hit a record high, may result in about 150 points, but also a more rapid momentum of Fan Chou. This is the investor should pay special attention. But then will go full crazy Quotes. Short-term, middle investors operating strategy ... ....
Today, despite the broader market has made a certain amount of shock, but the index eventually chose to break up. The Shanghai Composite Index went up to 2228, and finally closed at 2219 points, one step away from the all-time high. Is estimated that the sky tomorrow, or after the Shanghai Composite Index could hit a new historical high. With the broader market back on the all-time high, the market will be particularly optimistic and happy. As a sophisticated investor, in which everyone rapture, when it all the more calm, objective, and in particular, to beware of such technology trends; Fanchou after record. To know that this Fanchou there may be 150 points or so, margin would be greater. Do not be fooled by market optimism.
A broader market is not over the shock of adjustment, the index is still in shock Quotes.
Despite yesterday's market closed out a big Yang Xian, Shanghai Composite Index rose 86 points, Shen Chengzhi up 310 points. Today's index continued to rise, the Shanghai index rose 39 points, once again approaching historic highs. Some market participants believe that adjustments to an end. However, we did not put in place to determine adjustments, the index should be adjusted.
First, adjust the not yet in place. This is a short squeeze started in mid-market information 11, when the lowest level is 1841 points. So far index has been increased by almost 400 points, and close to 2245 points, highest in history. Tape generated a lot of profit-disk, some sort of relief plate, technically strong callback requests. Tape can not be just a few days of shock adjustments, complete the task, and can be pulled for the next phase of a substantial basis.
Second, market sentiment also showed that index has yet to arrive. The current market climate is still very optimistic, read more to see most is still the mainstream market. This marks the stage of adjustment has not yet in place, the callback of the task is not complete. Therefore, we believe that the index 12 weeks of the time, there will be one of about 150 points or so callbacks. - Of course, considering that this is a large short squeeze market, does not rule out the main anti-technology trend, the possibility of non-callback callback or less. All depends on disk may be.
Third, the index hit a record high, there should be a slightly larger intensity of the Fan Chou. This is a technical requirement, but also a technical trend. Due to historical high is a major technical mark bit, tape can not be successful once a breakthrough. Generally speaking, to go through a repeated twice in order to truly out of the ground-breaking Quotes. It can be said to go Fanchou is technically a requirement. Of course, we do not rule out the anti-technology trend of the stock market in particular, large cities have a record, the just do not Fanchou, while the continuous rising. But this is rare, and under normal circumstances, or take the case for multi-Fan Chou.
Second, Fan Chou possible to compare the repeated form.
From a technical standpoint, today, tomorrow there Fanchou are normal. However, due to yesterday's increase did not particularly evident in the mainstream of hot, today's rise in the lack of a continuous rise in the plate. Yesterday, today's more that only the index of strength of the strong, but not individual stocks, especially the hot plate with the strong. Immediately if conditions do not have the Fan Chou, from the disk to see, there are more complex movements of walking only after taking Fanchou possibilities.
In other words, the index may take a small secondary peak, or the repeated movement of shock after walking Fan Chou. This is the investor attention.
3, Fan Chou Quotes may be slightly larger.
Due to the recent index rose significantly faster, plus index if the new high, there would be greater pressure on callback. Therefore, this Fanchou magnitude, intensity may be relatively large. From the disk to see, it is possible in the Shanghai Composite Index of 150 or thereabouts. And its momentum will be more rapid. This is the investor should pay special attention.
In particular, if the record highs, the market will be highly optimistic, public opinion will be very optimistic about the market outlook. Almost everyone in this joyous time, as a sophisticated investor, even to remain calm, objective mind. Avoid hot-headed, blindly optimistic.
Fourth, after the index Fanchou likely to embark on a big move, and a final-round crazy Quotes.
We estimate that the completion of Fan Chou, the tape will be accelerated out of the stock market overall. It may be that a big move of the last great chance.
Therefore, investors in Fanchou not necessarily to take evasive action strategy. Can also take the central line operation strategy to set the goal of capturing accelerated Quotes of the first main hot spot. The focus of the operation into the final, the greatest opportunities.
Of course, for short-term investors, for shares held by investors in recent large increases, you may consider throwing stock, to avoid the decline Fan Chou. Then in the adjustment is relatively low, and then re-enter the market.
