Market Rescue with Zero Technical Content—Aesthetic Fatigue

2008/2/26 15:14:39

Today's so-called market rescue statement has essentially zero technical content. Besides demonstrating the management's recent hyper-attention to the market, there's no substantive content. Regarding predatory fundraising, no concrete restrictive measures were given. What does "according to market conditions" even mean? Does it mean that once the index is back above 5000, Ping An can resume its 160-billion-yuan capital raise? Therefore, until this issue is fundamentally resolved, the market's ultimate upside will inevitably be capped.

Of course, from an ultra-short-term perspective, yesterday I already clearly pointed out the opportunity following the 1-minute bottom divergence. Today's price action was a super textbook case—the third-type sell point right at the afternoon open, then a break to new lows, with the final bottom divergence forming at 2:30. If you can't even read and trade such textbook movements, then the only recourse is to keep studying.

Since after a 1-minute divergence the minimum rebound is back into the last hub, tomorrow's key is whether this rebound can expand further. On the daily chart, today already shows the embryonic form of a bottom fractal. As long as tomorrow doesn't break new lows and closes higher than today's high, the bottom fractal is established—then it's a question of whether it extends into a stroke. So technically, the conditions for an upward push are initially in place.

However, the biggest problem right now is that real substance from the policy side is needed, not watered-down rubbish. If policy doesn't provide genuine, sufficient support, then even going up just means continuing the large oscillation pattern.

Operationally, it's still the same: trade with an oscillation mindset—once the upward push loses steam, exit first. On individual stocks, previously mentioned stocks will all show some performance, but the current issue remains: without genuine policy support, sustained rallies will be difficult to sustain, and individual stocks can only exhibit line-segment style oscillation movements.

There are meetings this afternoon and evening, so the post will be cut short. Apologies.

Signing off, goodbye.