Bulls—When the Urge Hits, You've Got to Yell.

2008/1/4 15:12:12

What is the greatest significance of today's price action? From the standpoint of this ID's theory, it's that the breakout above 5336 extends the (1,1) state on the weekly chart. Until the weekly (1,0) appears—that is, until a weekly top fractal forms—just hold your stocks and sleep soundly.

For medium-to-short-term trading, what could be more ideal than the weekly chart showing the continuation of an upward stroke? In this situation, your profits have an ultra-stable guarantee system providing the strongest possible protection while extending those profits as far as they'll go. Those of you who act like startled birds every day—please go review historical charts carefully. If that daily noise that startles you can't even produce a weekly top fractal, then what is there to be so jumpy about?

Please review historical price action. Look at the move from 3563 points to 6124 points. According to the most basic application of this ID's theory—the weekly top fractal alone—was sufficient to let all profits extend to their maximum.

Of course, for the technically skilled, within the weekly (1,1) extension, one can also exploit lower-level moves for plenty of spread trades, or achieve profit maximization through stock-switching across different levels of oscillation. But that's for the technically skilled. If you don't have those skills, just sleep every day. You can even drool in your sleep if you like. Each day at the close, shamelessly check whether a weekly top fractal has appeared, then continue even more shamelessly sleeping soundly. Just this alone is enough to make you absurdly outperform many others.

Coming here is about learning. If you're too focused on whether you own a particular stock or whether you've made money, your skill level will never improve. Let's use this ID's stocks as examples again. One of the most despised stocks: 600636. Whether or not you made money on it isn't important—the key is whether you can learn something from this textbook price action. Look at this classic move: an ABC decline, where the B segment was rejected at the 120-day moving average, followed by an aggressive well-digging that was then confirmed with a pullback test above the 120-day line, then a rapid return to the well's upper rim around 13 yuan—a absolutely perfect well pattern. What comes next? It's simply the question of whether this upper rim can hold. This is all the most standard price action. If you're thoroughly familiar with this type of pattern, couldn't you handle similar situations with ease?

600078 and 000938 represent another type of price action—equally textbook. Please analyze them as homework.

Weekend time—once again it's the bulls' turn to flex their jaw muscles. Bulls—when the urge hits, you've got to yell. A rising market is fundamentally yelled into existence. The bulls get excited, then they yell. They yell at everyone they see. They yell until everyone on the street is worked up, and then naturally things go up and up.

This weekend, bulls should yell more. Getting excited and not yelling will give you internal injuries.

As for ultra-short-term technical analysis, since the third-type buy point hasn't been established yet, today's breakout doesn't come with a 100% guarantee. Whether this breakout is valid depends on the bulls' weekend jaw skills and the seductive power of their yelling—get everyone excited and worked up, and the market will naturally achieve a valid breakout.

This weekend, go enjoy yourselves.

Heading out now, goodbye.