Sorry, Just Got Home, Still Busy.

2007/11/26 23:59:35

Sorry, just got home, still busy. This equity battle is entering white-hot territory, and despicable tactics are about to be deployed. In truth, the most despicable thing is to lose the battle. Winner takes all—the law of the jungle. Don't debate how despicable the law of the jungle is, or how it shouldn't exist. In the midst of bloodshed, survival comes first. In the jungle, is there really anything less despicable than the law of the jungle?

The stock market is likewise a jungle, with its own magnificent law of the jungle—it's just this bloody. So what? PetroChina is going to shamelessly continue the pattern similar to China Life Insurance. Bulls—if you can't hold above 5163 points, you will be brutally crushed. There's nothing to discuss, and nothing to sympathize with.

However, the 120-day moving average should have sufficient elasticity. That is to say, around this area, there will be more back-and-forth. The current trend, in essence, requires killing both bulls and bears to thrive. In other words, fundamentally, any sharp decline will constitute a bear trap from the perspective of the larger oscillation. Since next month the 10-month moving average will rapidly move upward, the range between the 10-month line and the 120-day line will leave sufficient space for manufacturing traps.

For the long term, the 250-day line is the key—the so-called bull-bear dividing line. Before it is effectively broken below, any talk of the bull market ending is pointless.

For medium-to-short-term operations, pay more attention to the bear traps created by the 120-day and 10-month lines, but specific operations must temporarily be conducted through the lens of rebounds.

If you follow the weekly chart, look at the power of the top candlestick pattern formed around the week of the 6124-point peak. To neutralize this top pattern, a bottom candlestick pattern must first be constructed to complete a stroke. Therefore, the coming price action will revolve around the search for and construction of a bottom pattern. Standing from this vantage point gives you a much broader perspective on the coming weeks of market movement.

I've been extremely busy lately. Aside from the four hours while the market is open, I basically can't keep up with everything. So the market commentary hasn't been on time, but I'll always make it up when I get back. Things will improve a bit once these few most critical days pass.

Sorry, goodbye.