Category: Money tips Release Date: 2006-02-01
Broad market and the trend of individual stocks, some associated with high, almost to the point where every step; some low correlation between the two and even contrary. "Trend correlation," a direct reflection of the main capital flows and the strength of individual stocks has become an important basis for our stock-picking time.
1, basically consistent with the broader market, stocks, the trend of high correlation, Change space and the broader market does not depart too much. The broader market and individual stock charts a control, you will find the majority of individual stocks is consistent with the broader market trend, the broader market soared, stocks also rose; broader market slump, individual stocks is difficult to single of their bodies. The relationship between the broad market and individual stocks is a "river full of water streams, rivers without water or stream dry."
Such a lack of concentration of funds care stocks, the trend can only follow the crowd. Daoli adjustment, shareholders are more passive, because it is difficult to resist market's systemic risk, and in the bull market, the gains can not be beyond the broad market. Therefore, it is not the best investment options. However, if the large inventory position to judge accurately, in the broader market fell to low zone to intervene, it is necessary to reap the market average profit is not difficult.
2, take an independent Quotes of the stocks, the trend associated with low, often the main funding to operate independently. Such individual stocks do not rush into action when the broader market rose, large Pandie is sit back when. Charts, the broad market decline, such as the sun sets, these stocks rather being walking on flat grassland, and even dangerous to ignore the broader market environment, "hides small building into a unity", an independent channel to go up. Such stocks tend to have financial strength, operating out of the like in Zhuanggu trend, when large Pandie resilience in the broader market rose upward when the might be more durable, holding gains to exceed the broader market and to avoid systemic risk broad market decline . Involved in such stocks, the broad market without having to look at his face, as long as all the way holdings can often have an unexpected surprise. As the second half of this year, the broader market has basically dropped the main, but the basic out of the blue-chip independent market, especially Baosteel, China Southern Airlines, the group headed by Conch Cement, gone against the tide wave rose out of the market, showed a large number of funds focused on the mainstream The plate, afternoon trend is still cause for concern.
3, the first stocks bottomed out, is expected to become the next round of Quotes of the Toronto Canada. In a mid-level adjustment of the city, those who took the lead hit the bottom of the plate or individual stocks, the market is undoubtedly the foresight group. However, only be confirmed after the tape out of the bottom of the bottom of the. This is a wish to come back to see what stocks were among the broader market Yindie Amid the channel when it started to build up, it could be an important alternative as a species. If the November mid-point of reaching the 1307 low for the market's stage in order to Wuhan Steel shares, stocks, led by Shanxi Coking, but bottomed out in September began to rise, the recent strong trend. Based on historical experience in the broader market bottomed out stocks before and after the first one daily limit even more Quotes of "Venus", is often led the leading stocks, such as the November 13 low of 1307 points, hit a broader market that day, the first one is the daily limit Shanghai Maling, followed by stock soared into dazzling dark horse.
4, or beyond the market's plate or stocks, is abandoned by the market group. Since April the broader market fell 20 percent, but fell more than 50% of stocks everywhere, these stocks concentrated in the ST shares, the small-cap stocks, and Zhuang Gu. For such stocks, investors should no doubt be taken to avoid strategy. However, a very weak become strong, and an adjustment group showed the largest city, once the rebound up and also a very hasty. However, when you wish to participate in holding short-term thinking.
