Category: Money tips Release Date: 2007-05-21
Source: Guangzhou Bandung
Abstract: Faced with the rapid diving Yao City, investors will ask: Will the main manufacture what was intended by diving, afternoon into the broader market to be altered? We believe that the main intention is to ... .... Next week is not going to do even a slightly larger number of adjustments. Investors operating strategy is to ... ....
Broader market to continue up today after the market opened, Shen Chengzhi broke the million mark. 14:00 was once the main force driving the Chinese petrochemical 600028, 601628, China Life Insurance. However, 2:40 or so big city, a sudden dive, the Shanghai index rose 32 points, fell to the rapid down 25 points in 15 minutes in a drastic drop of nearly 80 points. From the Shen Chengzhi up 170 points, just plummeted to an increase of 19 points, a drastic drop of 150 points.
尾市firmed slightly broader market, the Shanghai index last closed at 3518 points, down 13 points, the fall was 0.36%. Shen Chengzhi day to close at 10019 points, up 55 points, rise of 0.55%.
The face of the rapid尾市diving, investors will ask: Will the main manufacture what was intended by diving, afternoon into the broader market to be altered?
In our view, the main force is not going to do even a slightly larger number of adjustments.
First, the main intention of manufacturing combat diving Yao City.
We judge, the major manufacturing diving are two main intentions:
First, Zhencangxipan. Big City, from March 19th consecutive rise, has been the second nine with a yang. Index has increased by nearly 700 points in one breath, and short-term increase of two number. Tape itself has a clear Xipan technical requirements.
Second, more importantly, switching hotspots. Is now the tape from the previous stage of its own run-up to accelerate the transition period, the original big city of the spotlight because of speculation in time is very long and technically entered the stage need to adjust. Support the market's further rise in the need for new primary hot spot. This requires switching market speculation hot spot.
The hot switching means, a group from the continuing rise in the stock continued to fall, another group of stocks from the adjustment to a continuous rise. This is a hot switching process is repeated shocks through the index to complete.
We estimate that a hot switching process is likely to continue several weeks to complete.
Second, the broader market should be relatively large callback do?
The face of tape unusual, almost unprecedented rise, investors thought it hard to accept, together with a substantial rapid Yao City of diving, so some investors are afraid of this into the broader market will adjust, or even a substantial return to tone.
However, we believe that investors are very worried that this would not happen. Because the main straight short squeeze has been nearly a month. Short has been forced by desperation. Adjust the main system at this time is tantamount to a short-covering an excellent opportunity is put short way out. This is the main 2 9 with a large short squeeze Quotes yang purpose of operations, is contrary. At such times, the main adjustment is made slightly larger point of the 2 9 with Yang's "betrayal" are a stage to another stage of operation and the intention of "playing the big frame," contradictions and conflicts, very wrong the decision-making.
As a very cunning, very clever operator main Chinese stock market is impossible to commit such a major mistake.
Therefore, we judge tape next week there will be no point in even a slightly larger than the callback, the main is not to calm investors covering short opportunities.
Third, investors operating strategies.
In our view, investors, the most important thing is the work of two:
First, correctly identified the nature of the current Quotes, Quotes now finds itself the right to judge is the high or low.
We judge the current Quotes has entered a new phase of a major short squeeze is a new one section of the main l just the initial stage. The index is at a low stage. So, now it is empty is a very dangerous thing.
Second, investors are now not to focus on should have done more, or short on. Instead, it should put all the focus on finding new hot spot on the primary.
We estimate that the new main hot spots will have to officially surfaced within the past 12 weeks. This is our new home to determine who is the hot spot of the most critical moment.
