5555 Points Held, Rebound Brewing

2007/10/26 15:13:40

The Hong Kong people who came a few days ago are here today. They're waiting at their headquarters north of the Workers' Stadium. This ID can only say a quick word — apologies.

This ID has already told everyone about the 5555-point level. This is the neckline position. If it holds, there's still a chance for a powerful rebound. Otherwise, the situation becomes even more dire.

Due to expectations around stock index futures and PetroChina, the "China-prefix" stocks will continue to play the most important role in the rebound. Meanwhile, some thematic stocks that have fallen to key moving average levels will also see some action, but it will tend to be stock-specific, with little sector-wide effect.

Of course, whether the rebound can successfully brew at the 5555-point neckline still depends on weekend news. If there's no extraordinary news, this rebound will emerge and continue around the time frozen funds are released, and PetroChina's listing performance will determine the ultimate fate of this rebound.

The game going forward hinges on technical skill and the agility to run the moment a rebound fails. If you can't meet the requirements in both technique and flexibility, then just forget it. This kind of play — once you get it wrong, it hurts and there's definitely no joy, unless you have masochistic tendencies.

Alright, it's the weekend. Let the stocks grind against the wall.

Heading out now, goodbye.