Standing Firm at 5010 Points, the Rally Continues to Unfold

2007/12/7 15:17:09

There's really nothing much to say today. In the morning, the market tested 5010 points again, but was pulled back up at 5021 — and this was on a Friday, no less — indicating that market sentiment still favors the continuation of this rebound rally. The subsequent trend was simply a matter of course.

In fact, with the current trend, there's absolutely no need to scrutinize each day's action too closely. On the daily chart, it was established early on that at least one stroke must form. Therefore, until a daily top fractal is confirmed, the rally will keep going. Moreover, after one stroke on the daily chart completes, you can further observe whether an extended upward stroke develops. So, as long as the market doesn't produce the corresponding pattern, you can simply hold your stocks and wait for gains.

When studying this ID's theory, you must learn to consider all levels comprehensively.

The key for next week is whether the 5-week moving average can produce a weekly bottom fractal. Since this week didn't reach last week's high and only produced an inclusion relationship, a bottom fractal will have to wait until next week to be determined.

Regarding individual stocks, there's nothing much to say. It's basically a broad-based rally right now, because many who had previously shorted are gradually covering their positions, making gains fairly evenly distributed. The key is that after pushing higher, the market will need leading sectors. So whether a market consensus on leading sectors forms after this broad rally will determine the ultimate height of this move.

Enough said — it's the weekend, go out and indulge yourselves.

This ID is heading to the mountains to soak in some hot springs. Too bad there's been no snow in Beijing — I really miss those days of soaking in hot springs counting stars in the snow.

Signing off for now, goodbye.