Continuing the Effort to Let the Bulls Stand Guard Over Stocks Ever Higher, Faster, and Stronger

2007/10/11 15:32:44

Today, even if you don't applaud for PetroChina's brilliant performance, by the close, even China Unicom surged with all its might. At this point, if you still can't feel even a bit of emotion, then this ID has nothing more to say to any of you. Right now, the bears are making great efforts to help the bulls stand guard over their stocks ever higher, faster, and stronger—doesn't this deserve a few tears from you all?

Yesterday it was stated ultra-clearly: "Once tomorrow brings nothing special, the upward attack continues—continue the essence-absorbing technique. After all, the bulls still have energy. The goal is to let the bulls get trapped higher, faster, and stronger, because only then will the future selling pressure be sufficient enough—the higher you lift, the harder you fall." The current strategy has already been stated very explicitly: as long as there's no policy intervention, just keep oscillating upward at the current pace, making the Zhong-prefix stocks shine brighter than the eight-or-nine o'clock morning sun, making the index more amped up than a chicken-blood injection. But ordinary people definitely won't make a single cent—that's the power of divergence.

Nothing crushes bull sentiment more than watching the index rise while the vast majority lose money. Lift up everything that pumps the index—these things are all double-edged. They go up fast, but they'll come down even faster. Convert the bulls' kinetic energy into potential energy, then ultimately convert that potential energy into the kinetic energy of decline—this has always been the one and only law of shorting.

Tomorrow will be a critical juncture. Whether the weekend news is merely a 0.54% interest rate hike, or a hard-hitting move like another stamp duty increase or some other drastic measure, or nothing at all continuing the news vacuum—this will determine the game's trajectory going forward. Tomorrow's price action will be entirely dictated by the direction of news, so a sky full of rumors tomorrow is inevitable.

Technically, the 1-minute hub of segments 144–147 has also formed. The line segment at 148 hasn't ended, and today's 2 PM plunge definitely has no killing power. Why? The alternation principle—one hit just yesterday means an alternation today.

On individual stocks, those who didn't participate in the Zhong-prefix game are certainly suffering. Zhong-prefix stocks and concept stocks—one pulled up, the other pressed down—this is the only way to ensure the absolute safety of the short campaign. Once the anticipated policy doesn't materialize, then flipping to the long side provides both good themes and room to run. This is the inevitable choice in large-capital operations—there's nothing cruel or not cruel about it. The market is what it is—it's not a communal pot where everyone gets a share.

But if the policy doesn't materialize immediately, concept stocks will rebound from being oversold, also giving Zhong-prefix stocks a chance to rest.

After the market closes tomorrow, I need to take a short trip to Shenzhen to sign a contract and will fly back to Beijing the day after. So after tomorrow's close, there won't be time to write.

There will be a post tonight. Heading out first. Goodbye.