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Rebound as Expected at the Rising Channel's Lower Rail

2007/10/23 15:40:39

As stated very clearly yesterday, after the 1-minute downtrend's bottom divergence, a round of rebound would unfold. Today's technical movement was extremely textbook. More importantly, this is the lower rail position of the rising channel from 3600 points, and also a gap level — therefore technically, this rebound was mandatory.

It was already stated clearly earlier: the bears' current strategy is to grab on every rebound. After grabbing, once the diehards surge up and run out of steam, that's when there are chips to feed them. Note — here this ID is again offering golden wisdom: not every rebound can be grabbed. Only rebounds during a topping process can be grabbed. Once the top is fully formed and a breakdown occurs, then rebounds don't need to be grabbed — just let others engage in long-squeeze-long, unless there's a particularly high-level buy point. This is an extremely subtle relationship, but generally those whose brains are waterlogged don't quite get it. Because in their eyes, all rebounds are the same. But in reality, grabbing rebounds during a topping process is only to facilitate the top's formation, and also to prepare a backup in case the top doesn't materialize.

Trading is like playing chess — you must have grand ideas, not just make moves one step at a time. Every move must have a follow-up — that's how you achieve steady, unbeatable victory.

The above words are for those whose skills are currently decent. The standard here is: those who are either empty-positioned or whose current market value is higher than on the day of 6124.04 points. Everyone else has no business trying to play rebounds — first use the rebound to restore your market value.

It's like dancing — once the rhythm is off, you can't compound the error. Adjust the rhythm first.

The resistance for the rebound is first the 5-day moving average, then the 10-day moving average. If neither can be broken through, then this rebound will constitute a second-type sell point, and what follows needs no explanation.

Note: PetroChina's listing will give the market another exciting excuse. But the key is how much time the policy environment allows. The "China-prefix" stocks will get a boost from this excitement — today this was already somewhat visible. Additionally, second-tier blue chips will also perform during the rebound, such as tech stocks and other thematic stocks. Since they hadn't moved at all before, some rotation makes sense, but the likelihood of broad-based sector performance is low.

This ID has repeatedly emphasized: a top isn't built in a day. Here lies a subtle implication: before the final breakdown, who ultimately gets trapped is not yet determined. So those who escaped at 6124.04 points shouldn't celebrate too early — if the rebound trade goes wrong and a grand changing of the guard happens at the top, that's a common occurrence.

Therefore, rebound operations right now must be cautious. Please trade within your means.

It's been very busy lately. Just now I was writing while the phone kept ringing, so no time to answer questions — apologies.

Heading out now, goodbye.

Replies​

缠中说禅 2007/10/23 15:59:27

Chán Zhōng Shuō Chán (a.k.a. this Cnt) 　　 This Cnt has never met a worthy opponent online, making the men across the most popular corners of the Chinese internet quite uncomfortable. Actually, this Cnt is also quite uncomfortable — how is it that there isn't a single formidable opponent in this world who could make this Cnt break a sweat? I know the men online are resentful of this Cnt, scheming with petty tricks to prove that men are narrow-minded. Fine — today this Cnt gives all the men in the world a chance. The challenge isn't even hard: just compose a ci poem matching the rhyme of one this Cnt casually wrote. If anyone writes one better than this Cnt's, this Cnt will immediately swear off men. This poem isn't even among this Cnt's best, but it's more than enough to defeat men. Furthermore, giving men an extra advantage: if anyone can improve even a single character in it, this Cnt concedes defeat and will swear off men for at least half a year. Men — stop being all talk and show some real skill if you want this Cnt gone!

缠中说禅 2007/10/23 15:59:27

Chán Zhōng Shuō Chán (a.k.a. this Cnt) 　　 This Cnt has never met a worthy opponent online, making the men across the most popular corners of the Chinese internet quite uncomfortable. Actually, this Cnt is also quite uncomfortable — how is it that there isn't a single formidable opponent in this world who could make this Cnt break a sweat? I know the men online are resentful of this Cnt, scheming with petty tricks to prove that men are narrow-minded. Fine — today this Cnt gives all the men in the world a chance. The challenge isn't even hard: just compose a ci poem matching the rhyme of one this Cnt casually wrote. If anyone writes one better than this Cnt's, this Cnt will immediately swear off men. This poem isn't even among this Cnt's best, but it's more than enough to defeat men. Furthermore, giving men an extra advantage: if anyone can improve even a single character in it, this Cnt concedes defeat and will swear off men for at least half a year. Men — stop being all talk and show some real skill if you want this Cnt gone!

缠中说禅 2007/10/23 15:59:28

Chán Zhōng Shuō Chán (a.k.a. this Cnt) 　　 This Cnt has never met a worthy opponent online, making the men across the most popular corners of the Chinese internet quite uncomfortable. Actually, this Cnt is also quite uncomfortable — how is it that there isn't a single formidable opponent in this world who could make this Cnt break a sweat? I know the men online are resentful of this Cnt, scheming with petty tricks to prove that men are narrow-minded. Fine — today this Cnt gives all the men in the world a chance. The challenge isn't even hard: just compose a ci poem matching the rhyme of one this Cnt casually wrote. If anyone writes one better than this Cnt's, this Cnt will immediately swear off men. This poem isn't even among this Cnt's best, but it's more than enough to defeat men. Furthermore, giving men an extra advantage: if anyone can improve even a single character in it, this Cnt concedes defeat and will swear off men for at least half a year. Men — stop being all talk and show some real skill if you want this Cnt gone!

缠中说禅 2007/10/23 15:59:29

Chán Zhōng Shuō Chán (a.k.a. this Cnt) 　　 This Cnt has never met a worthy opponent online, making the men across the most popular corners of the Chinese internet quite uncomfortable. Actually, this Cnt is also quite uncomfortable — how is it that there isn't a single formidable opponent in this world who could make this Cnt break a sweat? I know the men online are resentful of this Cnt, scheming with petty tricks to prove that men are narrow-minded. Fine — today this Cnt gives all the men in the world a chance. The challenge isn't even hard: just compose a ci poem matching the rhyme of one this Cnt casually wrote. If anyone writes one better than this Cnt's, this Cnt will immediately swear off men. This poem isn't even among this Cnt's best, but it's more than enough to defeat men. Furthermore, giving men an extra advantage: if anyone can improve even a single character in it, this Cnt concedes defeat and will swear off men for at least half a year. Men — stop being all talk and show some real skill if you want this Cnt gone!