Additional Share Issuance Becomes the Market Killer Again

2008/3/4 15:18:09

As mentioned yesterday, since the market hasn't produced a real third-type buy point, technically it can still fall back into the original 4331-point hub. The corresponding fundamental catalyst would be Ping An's additional issuance passing through. However, today's news front couldn't even wait until tomorrow's Ping An vote — the rumor of China Development Bank's additional issuance caused the market to immediately reverse downward, accomplishing the feat of returning to the original hub in one stroke.

It seems financial stocks are a group driven mad by poverty. From Ping An to SPD Bank, they've killed the rally N times now. These outfits that introduced so-called foreign strategic investors all love being market killers, striking at the most critical moments. SPD Bank failed to fill the downward gap and is probing the bottom again — the market's attitude is already very clear.

Obviously, the biggest variable now is still tomorrow's Ping An meeting. But given the current situation, passage is extremely likely. How big the impact on the market will be isn't hard to estimate.

The current market is a classic tale of ice and fire. The theme stocks that this ID has been emphasizing have been blazing the whole time, but these trash financial stocks keep causing trouble, which is truly annoying. Yet these trash financial stocks are priced sky-high AND want to grab more money — nobody's interested in catching their falling shares. But these things also carry the index, so all we can do is continue with the ice-and-fire dynamic.

Of course, the most decisive approach would be to just smash the financial stocks dead — smash them into something earth-shattering, smash out the new additional issuance rules that this ID has been emphasizing. Let the capital fleeing from them rally under the great banner of theme stocks. Only individual stocks matter, not the index — let the index go play by itself.

So, anyone still struggling in financial stocks, just surrender early and be liberated early. Look at theme stocks — with the market down so much, what kind of rally have they marched out?

Of course, once everyone has surrendered, these financial stocks can become new targets of attack again. 8228 — the same game.

The current operation is very simple: if you've been playing in theme stocks all along, every market dip is actually a washout. When the market turns back up, theme stocks make new highs again — back and forth, that's all there is to it. So even if the market probes the bottom again, it's just another opportunity to buy back in.

Today I'll propose a slogan: 7-8 yuan is gold, 12-13 is silver, above 20 is all trash. Look at the stocks this ID mentioned — basically all were under 10 yuan when mentioned. 600737 is now over 30, and it was 8 yuan when mentioned. 600635 is now in the 20s and has distributed bonus shares — it was 5 yuan pre-bonus when mentioned. Among those 30 stocks, this is almost universally the case. This is a very good stock-picking philosophy.

True big bull stocks basically all start from single digits. So right now, the task is to find those single-digit tomorrow's stars.

No matter what Ping An manages to pull off, no matter if the market gets blown up again — what awaits is opportunity. Declines are your daddy — they come bearing money.

Heading off now, goodbye.