3616 Points: Short-Term Key Level

2008/3/26 15:15:26

Yesterday I asked everyone to watch the situation where the 5-minute MACD holds above the zero axis before attacking upward. The result was a textbook consolidation divergence this morning—the red bars were smaller than the previous set, and only pulled the 15-minute MACD back to resist at the zero axis, so the subsequent drop was naturally inevitable.

Of course, if you can't read charts, seeing the sudden launch of 580989 also tells you the market is about to turn back. Before the Spring Festival, I gave everyone a most basic principle for 580989: 0.6 as the hub. If you properly grasp this principle, you'd make so much money you couldn't even count it. However, now the closing price is near 0.8, already far from the hub—the stage ahead carries extreme risk, so anyone who hasn't entered today must absolutely not enter. Today this warrant formed a larger-level hub by returning from a small-level divergence above 0.7 to the sub-level hub—so the short-term hub around 0.7 is a critically important comparison point, and whether subsequent rises form a divergence will be measured against this hub.

Note: warrants are highly speculative activity, and I'm telling you clearly—this is 580989's last major play, since there are only about 2 more months until expiration.

The reason I'm mentioning 580989 again is to ask everyone to pay attention: last time 580989 launched from below 0.4, which corresponded to a rapid breakdown in the market. Whether history repeats depends on the key level mentioned yesterday: 3616 points.

The current issue is Ping An. Without a resolution on Ping An, hot money can only speculate—who's afraid of whom? The beauty of speculation is that it shakes out short-term capital, sending them all running to things like 580989, which then makes medium-term position building smoother. Today, many new sectors are already churning with undercurrents—even if there's another downward thrust, these sectors present the best entry opportunities. Cherish them.

Just watch 580989 as a spectacle—see how it leaves you dumbfounded, how it traps the last greedy ones high on the mountaintop with no chance of redemption.

Signing off. Goodbye.