Detailed Analysis of "The Analects": For All Who Misinterpret Confucius (63)

2007/4/11 15:36:09

有子曰：其为人也孝弟，而好犯上者，鲜矣；不好犯上，而好作乱者，未之有也。君子务本，本立而道生。孝弟也者，其为仁之本与！

Yang Bojun: You Zi said: "A person who is filial to parents and respectful to elders yet likes to offend superiors — such people are rare. One who does not like to offend superiors yet likes to create chaos — such a person has never existed. The gentleman devotes himself to the fundamentals. Once fundamentals are established, the Way is born. Being filial to parents and respectful to elders — this is the foundation of benevolence!"

Qian Mu: You Zi said: "If a person is filial and respectful, yet harbors intentions to offend superiors — that would be very rare. If one does not like offending superiors yet likes creating chaos — that simply does not happen. The gentleman concentrates on the root of things. Once the root is established, the Way is born from it. Filial piety and brotherly respect — surely these are the root of the Way of benevolence?"

Li Zehou: You Zi said: "A person who is filial to parents and respectful to elders, yet likes to defy superiors — rare indeed. One who does not like defying superiors yet likes rebellion and creating chaos — never existed. The gentleman works on the fundamentals. Once fundamentals are established, the human Way naturally emerges. Filial piety and brotherly respect — these are the root of being human, are they not?!"

Detailed Analysis: Previously, we've been discussing how Confucius's disciples distorted him and smuggled their own private agendas into "The Analects." The most egregious offender was this "You Zi." In "The Analects," all of Confucius's other disciples are referred to by name, yet only "You Zi" and "Zeng Zi" are given the honorific "Zi." Even Yan Hui, Confucius's most outstanding disciple, is never called "Yan Zi" in "The Analects" — which is quite strange. Even stranger is that in the conventional ordering of "The Analects," You Zi's first recorded statement is placed right after Confucius's three most famous "Is it not delightful" passages — ranking second among over 500 passages, the earliest appearance of any disciple. Zeng Zi's first statement is ranked fourth, the second disciple to appear. These days, even search rankings cost money. Yet You Zi and Zeng Zi, both disciples Confucius accepted only in his later years — what merit or ability did they have to be uniquely honored with the "Zi" title and ranked so prominently, occupying the prime advertising spots? For over two thousand years, forcing countless readers of "The Analects" to remember these two first — on what grounds? The only reasonable explanation is that the version of "The Analects" that has come down to us was co-edited by the disciples of these two, with a massive amount of their private agenda smuggled in. This is quite simply the most shameless act in the history of Chinese culture.

This chapter is simple on a surface level — the three scholars above have all explained it, with minor differences. The biggest problem is that after all You Zi's verbiage, his core idea is simply to extinguish all who would "defy superiors and create chaos." Confucian learning was originally fierce and full of a spirit of resistance, yet this You Zi castrated it into a slave's creed. This man was also extremely hypocritical. His final statement, "Filial piety and brotherly respect — these are the root of benevolence!" — is not really about filial piety and brotherly respect at all. Following the logic of "A person who is filial and respectful yet likes to offend superiors — such people are rare; one who does not like offending superiors yet likes creating chaos — has never existed" — why emphasize and promote "filial piety and brotherly respect"? It's because being filial and respectful means not "defying superiors," which further means not "creating chaos." By this logic, filial piety and brotherly respect are not truly valued by this man in themselves — rather, promoting them produces the result of no "defiance and chaos," which serves the interests of the group he represents: those who fear being defied. And who exactly fears "defiance and chaos" the most?

His so-called "The gentleman devotes himself to the fundamentals; once fundamentals are established, the Way is born" completely contradicts Confucius's actual thought. Even Zeng Zi's so-called "one thread running through it all" has nothing to do with Confucius. This supposed "gentleman's root" is nothing more than a bigger lie fabricated to round out the smaller lie that being filial means not "defying superiors" and thus not "creating chaos." The logical chain is simply this: to become a gentleman, you must first have the "gentleman's root"; only with the "root" can the "Way" be born; filial piety and brotherly respect are the "root" of the Way of benevolence, which all gentlemen must observe. In this way, through the fabricated "gentleman's root," You Zi leads people step by step into the real trap of unconditionally never "defying superiors or creating chaos" — otherwise one has abandoned the "root," after which one can be declared in violation of the Way of benevolence, declared "not human," declared a "bandit" or "rebel," and then encircled and destroyed. This way, those who fear being defied can continue their misdeeds forever, profiting from the world's suffering. This is precisely the fundamental reason why rulers of China for over two thousand years have felt such particular affinity reading "The Analects" as edited by the disciples of You Zi and Zeng Zi, complete with their smuggled private agendas.

(To be continued)

Replies

缠中说禅 2007/4/11 15:38:12

I've been frequently mentioning Sinopec the past couple of days, just as I frequently mentioned China Unicom before the New Year, and China Bank after that. From this, the interesting aspects of this script should start to become apparent. Weren't the traitor funds always talking about suppressing ICBC? So what can they do with ICBC now? Push it below 5 yuan? Or pull it up? Now Bank of China has already become the leader — look at the spread between the two. Actually, the current market trend is a live broadcast — just those few large-cap stocks playing a critical role on the index. How to utilize them, and when to use which — everyone should carefully reflect on this. Starting from before the New Year, reflect slowly, and you'll learn something.

As for the overall market, there's nothing to say. Those who try to call the top are the most shameless — by their predictions, they'd be dead and buried long ago, yet they still have the nerve to show up? The top is fought out, not predicted — don't they even understand this simplest of principles? Same old story: if you can't read the situation clearly, just watch the 5-day moving average. Those with good technical skills can take full advantage of oscillations to sell first then buy, making short-term plays and rotating stocks — but absolutely do not chase highs. The only thing that can stop this market now is a regulatory crackdown from management. Otherwise, the market will continue running until capital and chip energy reach equilibrium, and that position is unpredictable — it's fought out. Those with poor mental fortitude or weak hearts should hold half positions — that way you can handle any situation.

I won't discuss individual stocks — they're all the ones mentioned before. Now it's best to act in the melon field and under the plum tree: just do, don't talk.

缠中说禅 2007/4/11 15:48:48

[Anonymous] Sina User

2007-04-11 15:41:59
MM, how's 607? You said to go suck the traitors' blood, so I bought it.
=
Good that you bought it. The traitor funds added positions around 13 yuan. Those who haven't bought — forget it, no need to chase highs and carry the sedan chair for the traitors. When it goes up later, find an opportunity to give the traitors a good shaking.

缠中说禅 2007/4/11 15:50:26

[Anonymous] 乐土

2007-04-11 15:42:01
Teacher:
Hello!
First-tier blue chips are all being ignited almost simultaneously — does this signal a big-cap vs. small-cap divergence in the coming days? Are the two major banks currently undergoing technical consolidation?
Diligently studying the Analects lessons you've given us.

==

Think of it as sector rotation. For the index, just look at the Shenzhen market; Shanghai can serve as reference. Note: do not chase highs on any stock.

缠中说禅 2007/4/11 15:51:58

[Anonymous] 小八

2007-04-11 15:42:36
First page, yay! Hello teacher.
Teacher, I'm currently studying and practicing the mechanical buy/sell operations of same-level decomposition. But from the 30-minute chart, consolidation divergence at the 30-minute level is very hard to wait for, because the MACD parameters are the default. If I change it to 5,10,10, the red/green bars seem more sensitive. Do you think this parameter modification approach is feasible? If not, which parameters do you think are better? (I haven't been investing long, learning from you as I go.) Please advise, teacher. Thank you!

==
If you can't wait for 30-minute signals, just use the 5-minute level — wanting speed is that simple, isn't it? However, if you're not skilled yet, don't use too small a timeframe — once you make a judgment error, you won't be able to correct it in time.

缠中说禅 2007/4/11 15:54:39

[Anonymous] 小丸子

2007-04-11 15:51:36
Today I could accurately judge the declines and the rallies, but my hands didn't follow my mind. I think this process still needs practice. The thing is I was too greedy — wanted to buy several stocks but didn't have enough money. After finally deciding on one, I found at the close that the ones I didn't buy all hit the daily limit, while the one I bought barely moved.

==
First ensure your operations are correct, then ensure better results — these are two different levels. Without the first level, the latter is meaningless. And to ensure correct operations, the best approach is to focus single-mindedly — choose a fixed set of stocks and operate them repeatedly. If you capture essentially all the oscillations at the right level, the efficiency is actually not low.

缠中说禅 2007/4/11 15:56:49

[Anonymous] hehe2

2007-04-11 15:43:11
BLOG host, today I basically captured the main decline.

But the problem is I kept entering before the decline was finished. This is a lesson — I must remember it!

==
First develop a sense of rhythm, then refine your accuracy.

缠中说禅 2007/4/11 15:59:05

[Anonymous] 百思不解

2007-04-11 15:44:44
Hello host! In Lesson 44 about small-level divergence triggering large-level reversals, the text gives this example:
"An upward 30-minute level a+A+b+B+c, if c has a 1-minute level divergence, eventually triggering a decline back into B."

My question: if c has a 5-minute level divergence (but c does not diverge against b), and it eventually triggers a decline back into B — how is this different analytically from the above example? Or put another way, what's the difference between this situation and a+A+b+B+c having a 30-minute divergence that necessarily pulls back into B?

=
There's no difference. Even if it's a divergence below the 1-minute level, the principle is the same. The 1-minute divergence was just an example — it doesn't mean it must be a 1-minute divergence.

缠中说禅 2007/4/11 16:02:12

[Anonymous] 水房姑娘

2007-04-11 15:45:05
MM, I feel like the hot money crowd is racing against time to catch the top.

==
Even if the index hits a top, it's no big deal. Didn't it top out on January 4th too? Then the index stayed flat, but many individual stocks continued to double. With someone like this ID around, fires will naturally be lit everywhere whenever there's an opportunity — so why worry about the market lacking opportunities?

缠中说禅 2007/4/11 16:12:11

[Anonymous] 缠心雕龙

2007-04-11 15:48:27
Chán Zhōng Shuō Chán
2007-04-10 15:37:11
[Anonymous] 缠心雕龙
2007-04-10 15:30:44

Hello blogger. Question about consolidation divergence: Three trend segments "up-down-up," designated A0, A1, A2. Suppose A0 is shortest, A1 is longest, A2 is medium length, and A2's high is above A0's low but below A0's high. Meanwhile, looking at the MACD indicator, A2's area is larger than A0's. Can we say A2 has NOT diverged against A0 in consolidation? It feels like A2's force returning to the hub is much greater than A0's force leaving the hub. Although A2 didn't make a new high, strictly speaking this shouldn't be called consolidation divergence, right?
==
This is all covered in the section on hub oscillation. Please go review it.

－－－－－－－－
Sorry, I understand the content of the hub oscillation section. I feel the above situation is indeed "no consolidation divergence" because A2's force is greater than A0's. But many fellow students say that since it didn't make a new high, it IS consolidation divergence. Hope the blogger can clarify.

==
Divergence or consolidation divergence is only possible when a new high or new low is created. For the case where no new high is made, it can actually be analyzed as hub oscillation — meaning it fails to reach the strength of the previous oscillation. MACD and other tools can be used as auxiliary confirmation, but this is not the same thing as divergence. This is all covered in the lesson about judging hub oscillation strength.

缠中说禅 2007/4/11 16:13:54

[Anonymous] 幼稚园

2007-04-11 16:10:58
Sister Chan, yesterday I added to my position in 600598 Beidahuang, operating at the daily chart level. It performed today. Can you check if my analysis was correct?

==
This kind of chart pattern will not produce a daily-level buy signal — though smaller levels certainly can. Getting it right may have been a lucky hit, so you need to clarify the issue.

缠中说禅 2007/4/11 16:22:30

[Anonymous] touchnet

2007-04-11 15:49:04
Regarding the situation where the last hub expands after divergence, asking the boss:

For an upward 30-minute level a+A+b+B+c, if b and c diverge, let's say the subsequent 5-minute trend segments are C1, C2, C3, C4, C5 etc., where odd segments go down and even segments go up. Then necessarily:

1. min(C1)<=GG(B)
   -------
   The first pullback segment must overlap with B's highest high.

2. min(C3)<=max(C1)
   --------
   Otherwise, a C completely non-overlapping with B would form, contradicting that divergence ends the trend.

3. min(C5)<ZG(C), where C is the 30-minute hub formed by C1, C2, C3.
   --------
   Otherwise C5 forms a third-type buy for C, meaning C has ended. For hub expansion, if B and C are to expand into a daily hub, according to the hub definition, at least 9 five-minute trend segments are needed to form a daily-level hub. At this point, if B only has three sub-level trends, then currently B, C, plus c, total only seven segments, so C5 can only be an extension segment of C. Adding C4 and C5 makes nine segments.

==
First of all, all your conclusions have a premise: that the divergence level is 30-minute. Otherwise, with a small-level divergence, the movement could be completely different. As for the later analysis, some details aren't quite right, because upcoming lessons will address this — please wait until tomorrow.

缠中说禅 2007/4/11 16:27:00

[Anonymous] 白玉兰

2007-04-11 16:17:29
[Anonymous] 白玉兰

2007-04-11 15:50:15
Hello dear!

Lately it's been all about second-tier quality or index component stocks. Does that mean stocks like 915 (classified as third-tier?) are in hibernation even if they have catalysts?

＋＋＋＋＋＋＋＋＋＋＋＋

Dear, don't ignore me? If I asked the wrong question, just don't answer.

==
Sorry, too many questions — didn't see it. As mentioned a while ago, second-tier stocks need to make room first before third-tier can continue. There's no medium-term problem at all. So you must match the rhythm of sector rotation, but if you missed it, there's no need to chase — waiting is also a type of operation.

缠中说禅 2007/4/11 16:30:32

[Anonymous] asdf

2007-04-11 15:52:31
Your Majesty, I'm still confused about distinguishing hubs at different levels.
For example, 10 consecutive limit-up days, then 5 consecutive limit-down days, then 10 consecutive limit-up days, then 5 consecutive limit-down days — no daily hub exists. Would this constitute a weekly hub?
Must a weekly hub necessarily require 3 daily-level trend segments to form first? Or could it be 30-minute level segments?

==
Hub level and amplitude have no necessary relationship. Without 3 daily segments, how could there be a weekly hub? If it's 30-minute segments, you'd need at least 9, which naturally forms 3 daily segments anyway.

缠中说禅 2007/4/11 16:38:49

[Anonymous] II

2007-04-11 16:27:07
Blogger, please answer this question. Thank you! ~~~~~~~~~~~~~~~~~~

Boss, are you done caring about 999? It hasn't been doing well these days.

==
This question is utterly pointless. What does "caring" mean? Does the stock have to go up every day to count as caring? Stocks have rhythm. Look at how long 600497 consolidated back in June last year. For retail investors, there's no need to fixate on a single stock — go where the hot spots are. Second-tier quality stocks — this ID was the very first in the entire market to reveal the script to everyone. Why not pay attention to those?

As for 999 — all this ID knows is that Vanke is also under China Resources.

缠中说禅 2007/4/11 16:47:16

[Anonymous] 麒麟

2007-04-11 16:02:53
Sister, with your capital size, how would you exit after fighting out the top? Do you need to plan ahead ~~~ Also, I bought 000912 following your general direction, but it's not going up. Thank you sister! You haven't answered my question for several days now.

==
Why would you need to exit? It's a 20-year bull market — if you sell, where would you buy back in? First understand the nature of this bull market. A stock at 20x P/E — ask this question again in three months and see where the price is. The market only rewards the patient.

缠中说禅 2007/4/11 16:51:04

[Anonymous] asdf

2007-04-11 16:39:23
Chán Zhōng Shuō Chán 2007-04-11 16:30:32
[Anonymous] asdf

2007-04-11 15:52:31
Your Majesty, I'm still confused about distinguishing hubs at different levels.
For example, 10 consecutive limit-up days, then 5 consecutive limit-down days, then 10 consecutive limit-up days, then 5 consecutive limit-down days — no daily hub exists. Would this constitute a weekly hub?
Must a weekly hub necessarily require 3 daily-level trend segments to form first? Or could it be 30-minute level segments?

==
Hub level and amplitude have no necessary relationship. Without 3 daily segments, how could there be a weekly hub? If it's 30-minute segments, you'd need at least 9, which naturally forms 3 daily segments anyway.

------------------------
But in this situation, the weekly chart shows three "down-up-down" segments. If that's the case, then three overlapping segments on a given level chart don't necessarily constitute a hub. Following that logic, it's the same for every level, and the hubs you see on charts may not actually be hubs. This makes visual hub identification somewhat uncertain.

=
It's not any random three segments that qualify — they must be three sub-level segments. If there's no hub at the sub-level, then of course it doesn't count. Who told you that seeing "up-down-up" automatically means a hub? Moreover, as mentioned before, the most precise hub analysis should start from individual strokes and build upward level by level. But that's too tedious, so you can use 1-minute charts and similar as substitutes — the practical effect is the same.

缠中说禅 2007/4/11 16:54:19

[Anonymous] Hindsight

2007-04-11 16:50:20
Thank you, Chan master. Let me copy this again (already copied 5 times):
The elephants take turns on stage. China Unicom moves as scheduled. They each perform according to their zodiac signs for the endless stream of newcomers entering the stock market. So the new investors really ride dragons, horses, and tigers, while many veteran investors ride bears, rats, and pig behinds. Performing and performing again, those accustomed to Western cuisine are slowly beginning to appreciate the charm of douzhir (fermented mung bean drink), jiaoquan (fried dough rings), and stinky tofu. Some fence-sitters are also slowly joining in.
As for ICBC — that car with a carburetor unsuited to Chinese gasoline and tires unsuited to Ping An Boulevard — it's probably like this: they start it up and inch forward a few steps themselves, then the fence-sitters push them a few more steps. Limping along like this, at least it's not losing face, and finally adapted to our national conditions.

Help request:
Today I picked up some Shi Tou Ji (Stone Story) medicine. I was also watching a stock and alerted the group members, but noticed the big player there was selling in large lots. Could it be they're going to push ICBC? Haha, who knows.
Could you please help analyze 600327, both the on-chart and off-chart factors?

==
When a stock goes from single digits to double digits, a major consolidation is perfectly normal.

缠中说禅 2007/4/11 16:56:26

[Anonymous] 戈石

2007-04-11 16:40:32
Your Majesty:
After today's lecture, I feel like the core of "The Analects" has been covered. Besides "Learning and practicing," "Not the same, not alike," "Not knowing, not resenting," "Not worried but worried," and "Food-seeking, Way-seeking" — there isn't much that's actually from Confucius himself, is that right?

==
Those marked "The Master said" are basically all his — how could there be none? It's just that many of his disciples' own sayings were smuggled in, and those have nothing to do with Confucius.

缠中说禅 2007/4/11 17:02:48

Sorry, it's 5 o'clock. I need to be at a certain street by 6:30, and won't be online tonight.

Signing off. See you tomorrow.