120-Day Moving Average Finally Shows Its Power

2007/11/29 23:53:11

Today's little acquisition battle produced a rather entertaining situation — a good show that still has more acts to come. Starting from tomorrow, things should gradually return to normal. Sorry for the time confusion these past few days.

The market's trend hasn't been too confused. This ID said earlier that dropping below 5000 points was merely a bear trap, and the 120-day moving average has fundamental support — even if the decline continues, it's just building more bear traps. Today the market pulled back above 5000 points, causing a larger-level hub to expand. In other words, a 30-minute hub will expand around the 5000-point level, and subsequent trends can be observed from this 30-minute oscillation perspective. Of course, if this 30-minute oscillation somehow produces a third sell point, then "moderate prosperity" and "initial affluence" wouldn't be anything strange. There's no need to predict — just watch the oscillation and you'll have it handled.

However, as mentioned yesterday, since the market didn't choose to create a bigger bear trap below the 120-day moving average, the significance of the bounce back will be somewhat diminished. First watch the 5-week moving average — if it can stand above it, the momentum will be stronger; otherwise the pressure for another bottom test remains significant.

Current operations are simple: continue treating things from a hub oscillation perspective, except this time the oscillation is of a larger level. Operationally, it's still guerrilla warfare. As for positional warfare and the like, leave that for the bulls and bears. This ID's operating philosophy is simple: fire cold shots, shoot hidden arrows, specifically target the bulls and bears when they're out of steam, and kick them when they're down.

Kill both bulls and bears alike — seize opportunities to kick them when they're down and fire surprise shots. This has always been the unmatched method for oscillating markets. Profits in oscillations are always refined from the corpses of bulls and bears. Though cruel, this is the way to survive in oscillating markets.

In the market, the greatest cruelty is sending yourself to the chopping block; in the market, the highest morality is marching forward over the corpses of those who lost their rhythm. The market is the market — those who pretend to be moral paragons are either already dead or about to die. Is it necessary to listen to their moral lectures?

Of course, please do take note: before you've become a steel warrior, there's one best way to preserve yourself intact — during major-level corrections, cling tightly to your little stool and don't participate in any rebounds whatsoever.

Better to miss an opportunity than to make a mistake — the great, glorious, and correct little stool.

Signing off first, see you later.