Category: Money Tips Date: 2006-12-27
Source: Shanghai New Rand
Su Liang experienced rapid sell into the market this week, finally appeared this afternoon retaliatory rebound on the Shanghai Composite Index yesterday's huge package in one fell swoop anti-yin. Although the stock has not fully cover the gap yesterday, the next jump, but to enlarge the volume of the afternoon, as well as oversold stocks across the board counter-attack to seal the two cities more than 100 daily limit of the characteristics of individual stocks, the market has entered a counter-offensive phase.
Moreover, with the index of a strong counter-attack, short-term long-suppressed emotions to do more than a rapid release, making characteristics of cities of the broad based, is quite obvious.
The previous weekend phobia is different is that today's market, not only did not continue to fall, but the intensity of the anti-big bag Yang Xian, which further illustrate how the market has entered a basing phase, indexes start at the current location to launch a wave of great intensity with the Quotes counterattack capability. Recalling the tape from the June 20 drop since the market has been continuously abolition of interest tax, macro-economic tightening regulation and control is expected, QDII sail, issuing 1.5 trillion special treasury bonds and other one a bearish pressure, although the decline in stocks during the heavy, but the index So far they are nothing but have not yet fallen below pre-June 5 low of 3404 points, indicating the main market is still firmly in control of the tape running rhythm. In the bad gradually released, the market itself has started to re-gather the strength to do more.
Secondly, today the integrity of oversold stocks rebound is not a coincidence, this group started from the May 30 crash of the junk shares, subject matter experience of the two major waves in the adjustment of stocks, many stocks have already fallen below six years of wire-line or down to near the and short-term technical indicators have also been seriously oversold, we had in the previous article clearly pointed out that "the integrity of oversold this is very rare in a bear market, let alone still in the context of the bull market." In fact, in the second half of this week's panic sell into mainly from the large cap sector Shigekura heavyweight and blue chip Budie, resulting in index of filling pressure and unilateral market in extreme fear. Retaliatory counterattack today is further validation of our analysis pointed out in yesterday's "strong plates Budie often means the end of the market has been moving lower." From the movement of heavyweight blue chips and see, even the recent Budie been unable to destroy the medium-term trend, after a withdraw sword but later re-equipped with the ability to take a good, indicating the blue-chip heavyweight and is still the basis for the bull market, especially in such as the Industrial and Commercial Bank of China (601398) This heavyweight varieties, so the adjustment process in the market can maintain a strong run, basically in line with our recently pointed out repeatedly, "is located in an important support for the medium-term," the analysis point of view. After withdraw sword 5 yuan below the effective support, the Unit should be able to continue to higher volatility, which will shape the future of the stock must support.
Technically, in the round down the process, the continued shrinkage of volume constraints have been playing an important obstacle to multi-week, mid-day Shanghai stock market trading volume is shrinking to 700 80 billion level, with only the top five mid-to late the region of about 250 billion the amount of energy of 1 / 3. Counterattack on the market today with heavy volume of more than 900 million turnover, indicating a turnover of more than 700 million, the land should belong to the amount of short-term market level, while in volume to maintain a relatively steady recovery in the case, the market is expected to be renewed counter-attack. It is worth mentioning that the Japanese line, MACD indicators DEA values beneath today's 0 axis, while on-line since 2006, only DEA Kusakabe August 4 last year, wearing a 0-axis, where exactly is the location of the end of a mid-course adjustments . Similarly, the stock's current visit to 20-week moving average withdraw sword to be supported, as well as some long-term technical indicators for the current position, are very similar to last year's early August, so the market today is in fact in time and space have encountered a the medium-term support for resonance, at least this month, there is still a wave of secondary reaction can be expected. But from May 30 of this adjustment has been a major blow to the extent of the market, the market's bottomed will be a very complex process, the short-term is difficult to reproduce in the first half of the unilateral push up Quotes. 20,30,60-day MA above the pressure of the formation of the medium-term moving average with a relatively short-term stock would constitute a strong counter-pressure. Short-term market in the fast-up meet resistance, it was very likely to occur some time around the mid-term average for the medium-term fluctuations in order to repair damage to the technical form, and only such a good medium-term form of repair, and restore investor confidence, the market can afford to get out continuous push up Quotes.
Note that in the future shocks bottoming crucial moment, how to position and species mix adjusted to optimal state, control is undoubtedly the future market risks, decide the future level of benefits a top priority.
