Falling Stone Turns Light Saber — Troops at the 3919-Point Neckline

2007/7/12 15:38:28

After watching today's movement, go back and re-read the post from N days ago, "Catching Falling Rocks Mid-Air — Once the Bow Is Drawn, the Arrow Won't Turn Back"—you'll probably have a rather different feeling now. Today, the falling rock transformed into a lightsaber from Star Wars, commanding billions of troops straight at the 3919-point neckline. As for the props behind this lightsaber, they were mentioned in previous posts.

Of course, the larger-scale, broader-space bull-bear offensive and counteroffensive mentioned yesterday merely began today. Moving forward, think more about the difficulties and prepare thoroughly—after all, technical indicators haven't been fully repaired, market sentiment hasn't been effectively rallied, and the road ahead is still long. "The road ahead is long and winding; I shall search high and low."

On individual stocks, as mentioned before, two types of stocks must be watched. One type is mid-to-low priced stocks with themes and potential that have already received support from the annual line. The other type is strong stocks—the representative of this category, as discussed in last night's "Vindicating the Investment Value of Chinese Stocks," is the CSI 300. The exact quote was: "I can say with certainty that after mid-year results come out, the average P/E ratio of the CSI 300 will be far below 50x. The current investment value of the Chinese stock market is greatly underestimated."

Veterans here all know that this ID divided China's bull market into three stages. The first stage is the component stock rally, and this first stage is far from over. From the perspective of a 20+ year mega bull market, what we're seeing now is merely a small correction within the first-stage component stock rally—nothing major. So during the first stage, any rally of real substance must have component stocks on board; otherwise, it's all for nothing. Once mid-year results start coming out, everyone will discover—as stated in last night's article—that China's best 300 stocks have their investment value greatly underestimated.

Note: what this ID says on this blog—if dreams somehow became reality, go talk to Wang Shuo about it; it has nothing to do with this ID. This ID merely dreams. As for that shameless reality insisting on following this ID's dreams like a clingy stalker, go skin and debone that shameless thing.

Busy. Signing off. Goodbye.