Talking About Yesterday's Trend
2007/7/25 8:54:22
Sorry, I've been extremely busy. Just woke up now, so let me quickly talk about yesterday's trend. There's actually not much to say about yesterday — technically, it hit the connecting line of the previous two highs. Standing on the minimum requirement of this ID's triangle consolidation, yesterday's pullback was entirely justified. As this ID said before, at this point — at least for this ID — it has long been a position of complete flexibility, so more time should be spent on other things. This ID's minimum requirement was the fourth leg of the triangle. Yesterday, when it touched the line connecting the previous two highs, it fully met this ID's requirement, which is why this ID will not take further action. In other words, if the market produces a trend better than the triangle — for example, a direct breakout from here — for this ID, that would be icing on the cake, and this ID is happy to ride the sedan chair. If the market continues along the triangle pattern with a pullback forming the fifth leg, then even if the market returns to the line connecting the two lower lows currently below 3700 points, this ID can also accept that — at worst, this ID will simply step in again then.
This ID's purpose in making this move was publicly stated at the time of execution: it was to prevent traitors and foreign devils from buying cheap chips, to foil their platform-style conspiracy. This objective has been fully achieved. This ID's actions target only traitors and foreign devils — this ID doesn't play liberator. This too was said at the very start. And this ID's current allocation of funds and positions has been fully adjusted over the past two days to match this both-ways-acceptable posture. This was already made clear at Monday's close when this ID said: "As for this ID, I brush past white clouds above, and looking back, gaze across the great river — the fire has been lit, whoever wants to carry the torch can carry it."
From a purely technical standpoint, the 1/2 line of 4159 points is key. If the current torch-bearers have the ability to hold that line, then the market will continue to make new highs; otherwise, it will go fill the gap and test 4000-point support, or even test the line connecting the two lower lows. Since this ID has now retreated to the second line — only riding the sedan chair rather than charging forward — more technical commentary and segment analysis can be provided going forward. The prerequisite, of course, is that this ID has time.
On individual stocks, this ID will continue to favor those medium-to-long-term boy toys, provided you have enough patience. For instance, like what this ID said in April about the Shenzhen newly listed small-cap stocks with 60 million total shares and under 20 million in floating shares — they weren't moving at all back then. Now look at 002121 — does it not match what this ID said at the time about medium-to-long-term value? With the market oscillating and falling so much, what impact has it had on it? The same goes for other stocks. Boy toys are meant for the medium-to-long-term — that's where the fun is. Having 419 flings with stocks every day, be careful of catching AIDS.
Medium-to-long-term operation: be focused, bring the cost down to zero — this is the eternally undefeatable way in stocks. Regarding 002121 mentioned earlier, this ID's cost hadn't reached zero yet, but after this month's operations, it's now at zero. Note: everyone should definitely not buy now — if you didn't buy below 30 yuan, buying now would be insane. But if you already hold, you can continue operating according to this ID's method. Once the cost reaches zero, the goal becomes maintaining zero cost while increasing your position. This method applies to all other stocks in exactly the same way.
Sorry, still busy today. May not have time for market analysis after the close. But whenever there's time, this ID will come and say a few words.