Goodbye, This City of More Fine Food Than Fine Men
2007/5/14 15:23:24
About to leave Shenzhen for Changsha, then someone will pick this ID up at the airport to head to another city. Before departing, as promised, a few words on today's market movements.
The market today was a textbook case of oscillation. Shenzhen was slightly stronger, but it was still just a marginally stronger balanced market. For Shanghai, today's hub was around 4020—this is a very important reference point for tomorrow. Holding steady or oscillating around it would be fine; otherwise, the market will once again test the 4000-point level.
4000 points won't be so easily held—this isn't just for technical reasons. Psychology, policy, and so on—without sufficient oscillation to digest all this, it's simply impossible to effectively hold that level. Today the market hit new highs while volume shrank, proving that the habitual game of treating bad news as good news is suffering from aesthetic fatigue. Those charlatans who were screaming that the market had to break through such-and-such level today—ignorant fools who only know how to use retail investors as cannon fodder—their market-disrupting behavior must be severely punished. Of course, the bears are equally a pile of garbage. Over the weekend, bears were barking wildly everywhere; some even ran to Peking University to howl at those so-called executive training classes. People like that should have been rounded up and sold off as gigolos long ago.
This ID is neither bullish nor bearish here—only reading the market's signals. Let me reiterate: those three medium-term oscillation patterns require the combined result of various market forces and need not be predicted. Operationally, you only need to follow the principle of hub oscillation—continuously selling high and buying low before a third-type buy/sell point appears. Once a third-type buy/sell point emerges, take the corresponding action based on the resulting trend. For example, after a third-type sell point appears, just stand aside and wait until a sufficiently large-level bottom divergence shows up before doing anything. Let me remind you again: the profits from oscillation are absolutely no less than from a one-way move, but this requires skill. If your skill isn't up to par, just follow the moving averages.
There are many things not convenient to discuss here. A historical event—what lies behind it is never what the surface reveals. Just like the share reform—now it's treated as a historical achievement, but how many people know how many times it nearly died? Many things need not be said anymore. Just remember this: everything on the surface is the result of competing forces, and for ordinary investors, you must stay calm, calm, and calmer still. Follow a proven, effective technical system—that's how you avoid being used as someone else's tool.
Most cities in the world have neither fine food nor fine men. Shenzhen at least has fine food—be content with that. This time, having encountered no fine men, I can only say to the fine food: goodbye!