Not Every Market Close Needs a Title

2007/8/24 15:24:47

Today, right at the opening, the market first surged to 5,088 points, consolidated for 30 minutes in front of the 2/3 line at 5,089 points, then broke through that level. After that, it was basically oscillation, as the gap pressure from below was still there. Breaking through and holding the 1/2 line leads to the 2/3 line—that was achieved today. The next task to complete is stabilizing the 2/3 line, which is the prerequisite for continuing the attack on the 3/4 line.

Weekend news is very important. If there's nothing special, then next week should have a good start. But next week determines the monthly candlestick close, so next week's task is: no large bearish candlestick. Any other outcome is acceptable. Next week, the more rational approach would be to consolidate the 2/3 line at the current position around 5,089 points. Generally speaking, confirmation of such a line breakout requires at least weekly-level confirmation—just look at how the 3,000-point and 4,000-point levels confirmed the breakouts of the 1/4 and 1/2 lines. Of course, if everyone insists on being impulsive and wants to challenge the 3/4 line next week right away, you might want to listen to that extremely cheesy song "Punishment for Impulsiveness" this weekend first.

On individual stocks, the hot sectors continue to perform. But the battle for capital between regular forces like mutual funds and irregular forces like hot money—today some sparks flew. Let's all get along and make money peacefully. Don't quarrel. Line up, strike elegant poses, and those destined to be favored will naturally be favored. Harmony is precious.

Last night I discussed that lesson, and some might say this ID's own dozen or so stocks don't include any industry leaders or high-growth stocks, which contradicts what this ID said in yesterday's lesson. That's just different eyes seeing different scenery. First, the most obvious: isn't 000338 a leader? Isn't 600649? Isn't 000999? Isn't 000998? Isn't 000777? Even 600432, 600343, 000099, 000778—which one isn't a leader in its niche sector? Did you know 000778 is the world's number one in centrifugal ductile iron pipes? Do you know what centrifugal ductile iron pipes are used for? Do you know what every developed region in the world uses for drainage pipes? Do you know how much would be needed if all of China's drainage pipes were upgraded just once? Do you know that beyond drainage, urban water supply and gas delivery also use this stuff? Of course, 000778 has more than just that—do you know how much the words "Xinxing" represent? The same goes for the other stocks—I won't elaborate.

Note that this ID's stocks were all mentioned at extremely low prices. For example, 000778 was only around 5 yuan when I mentioned it. Buying now, the same amount of money would get you less than one-third of the shares—there's really nothing to be done about that. Latecomers inevitably pay a higher price; that's the way of the world. Moreover, all these dozen-plus stocks were only mentioned starting from end of December last year—stocks this ID bought before that were basically never discussed. This ID's principle is: the moment this ID mentions a stock is the moment this ID buys it. Think about 000999—have you forgotten that this ID said there was a new sum of money arriving in a couple of days and even mentioned 000999 ahead of time? There should be people here who bought cheaper than this ID, for example at 5.9 yuan. Of course, with the volume this ID buys, the position-building cost is inevitably higher than that of an ordinary retail investor—a day earlier or later doesn't matter much. The key is the ability to reduce cost to zero afterward—on this point, this ID considers itself second in the world, and there's simply no first. Of course, with cost at zero, conviction in holding is naturally also number one in the world. 600432—some of you bought it around 20 yuan—just over half a year ago, and now who still holds it? This ID hasn't sold a single share. 000338—let me tell you clearly, it's definitely hitting 100, but now probably no one still holds it. Actually, for this stock, 100 isn't even worth mentioning—think about its position in the industry, think about the scale of this industry, and you'll understand why it has the momentum.

On weekends, stocks are the most revolting thing.

Forget about stocks, everyone—go indulge yourselves!

Wishing everyone in the world who wants to indulge the ability to finally indulge.

Long live indulgence, ten thousand years and ten thousand more!

I'm off—this ID is going to contribute bricks and tiles to the great cause of indulgence.

Goodbye.